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>> Dell, a lot of stories within this one.

David,

you'll tell me it's a strong quarter. I

think the market right now is staring at

the outlook for the fiscal year ending

January 27th, the $167 billion of sales,

60 billion of that being AI servers.

Something in there is new. In fact, $27

billion of something in there is new in

the outlook. What is it?

>> Yeah, afternoon, Ed. Look, it's a

tremendous start to the quarter,

obviously, and the year ahead. Uh 88%

revenue growth,

you know, 214% EPS growth, and record

cash flows, you know, built on real,

durable, and accelerating globally the

amount of infrastructure that's needed

out there. If you look at this, you

know, really production at scale, all of

those things have given us confidence,

as you say, to add to that full year

guide, adding $27 billion to the

revenue, $167 billion dollars now,

almost 50% increase year-on-year, EPS of

$17.90,

uh really strong, and you know, really

looking forward to the year ahead.

>> David, is this coming from sort of one

single hyperscaler customer? Is it the

neo clouds, or is there more sort of

granularity you can give me about what

is actually happening in the world?

Completely acknowledge that the CPU

server is back, right? That's clear in

the quarter gone. But there must be

something more happening under the

surface here.

>> Yes, this is more broad-based and more

prevalent across the ecosystem and our

solutions. So, CSG growth, 17% growth in

Q1. We're guiding to almost similar in

Q2. You mentioned the traditional server

networking business grew 92% in Q1.

We're or expecting a strong guidance to

go through the year. Obviously, we've

taken up our AI storage guide, uh our

server guide, $60 billion dollars and

storage will grow every single quarter

to go to the year. So, it's more

prevalent across our products, across

our verticals, across our our customer

base. So, really more broad-based and,

you know, AI demand, if you like, beyond

the GPU in terms of the opportunities

ahead.

>> Can you quantify that? The AI demand but

it beyond the GPU?

>> Yeah, if you look at our guide, it's up

27 billion dollars. We've taken our AI

guide up 10 billion dollars from 50

billion to 60 billion. So, obviously the

rest is in our core business and it's

more prevalent across CSG, traditional

server, and the storage market. So, you

know, strong across the board.

>> Been under the working assumption for

quite a while now that the US

government's your biggest customer.

Think the world was a little bit

surprised yesterday. I was a little bit

surprised about the 10 billion dollar

defense deal. Basically 2 billion

dollars per year for 5 years.

What is that? I'm trying to understand

Like, is Dell in the software game here

in that deal or what does it represent

to you, David?

>> No, look, we're historically selling uh

software over many years. Uh, we

obviously support all the federal

agencies in the US, but it's also more

prevalent across the globe and all the

government agencies. So, this is just

another mark, if you like, in terms of

the broad solutions when when any

customer, whether it be federal or

whether it be enterprise-based, is

looking for us to help them in their

technology needs and the solutions.

We're there to help them. We have those

long-standing relationships and this

isn't just another example of that.

>> And can I just double-check something

mechanically speaking? The The 9.7

billion dollar deal, is that reflected

in the updated outlook you gave? Like,

it it's it was something that was baked

in.

>> Well, again, if you think of the the

guide, we're up 27 billion dollars for

the year. That contract is 9 billion

over 5 years. You know, and most it's a

billion less than a billion dollars for

this year. So again, a very small part

of what is a broad-based discussion

around broad technology opportunities,

solutions that our customers are looking

for,

and making sure we can fulfill as many

customer needs as we can in this

environment.

>> Some people might say in this

environment, what's a billion dollars

here or there in any given quarter or

balance of financial year? I think the

sense the analysts were trying to get

from the call is the staying power of

this demand, how sustainable it is. But

I think another way of looking at it,

David, is have you set yourself a new

baseline going forward of what the world

is like for particularly the AI server

business.

>> Yeah, I think it goes beyond the AI

server business. I think it's AI demand

in total across the solution and and

infrastructure stack that's there. If

you look at the broad-based

opportunities that are appearing, I

think as we move from training models

into inferencing, those inferencing

workloads are creating a net new

environment with a net new time, if you

like, that's there to go attack and go

go balance from a, you know, customer

perspective. We're seeing that and those

education elements are coming in as part

of the opportunity that's in front of

us. We're excited by that, and I think

that makes it a more broad-based durable

growth over the long term for us as we

see that.

>> I I appreciate that you've outlined

twice that it's broad-based. Was there

one big customer or even sector in the

quarter gone or one big customer or

sector for the outlook in the year that

has changed the trajectory for you?

>> No, it's again more broad-based. If you

look at our segments, Neo Clouds,

Sovereign, those enterprise customers

you'll have meant heard and spoke with

Michael last week in relation to our

5,000 customers

in the enterprise side in relation to AI

as we broad-based out those AI

factories. You know, there's growing. If

you look at our five-quarter pipeline,

all individual verticals are growing in

their own right, and it shows again that

the scale and the opportunity that's

both geo and vertical based.