Revenue of $25.0B beat consensus by about 4% and non-GAAP EPS of $1.89 beat by roughly 11%. AI-server revenue of $3.1B exceeded expectations near $2.3B, driving record ISG revenue of $11.6B. CSG revenue of $12.4B missed as consumer revenue fell 22%.
[AS-033]FY2025 revenue rose to $95.5–98.5B and EPS to $7.80 ± $0.25; Q3 revenue of $24–25B and EPS of $2.00 ± $0.10 were modestly light.
[AS-033]The annual raise required a stronger fourth quarter, especially in CSG and storage, while AI-server demand supplied the main buffer.
[AS-033]The market rewarded the AI and full-year raise, then focused on the below-seasonal Q3 profit guide and low incremental AI margins.
[MKT-001]Revenue of $25.0B beat consensus by about 4% and non-GAAP EPS of $1.89 beat by roughly 11%. AI-server revenue of $3.1B exceeded expectations near $2.3B, driving record ISG revenue of $11.6B. CSG revenue of $12.4B missed as consumer revenue fell 22%.
Revenue of $25.0B beat consensus by about 4% and non-GAAP EPS of $1.89 beat by roughly 11%.
AI-server revenue of $3.1B exceeded expectations near $2.3B, driving record ISG revenue of $11.6B.
CSG revenue of $12.4B missed as consumer revenue fell 22%.
FY2025 revenue rose to $95.5–98.5B and EPS to $7.80 ± $0.25; Q3 revenue of $24–25B and EPS of $2.00 ± $0.10 were modestly light.
| Metric | Prior | Latest | Consensus | Delta | Status | Reason / implication |
|---|---|---|---|---|---|---|
| FY2025 revenue | $93.5–97.5B | $95.5–98.5B | Not consistently available | +$1.5B midpoint | Raised | AI and ISG growthApproximately $49.7B required in H2 |
| FY2025 non-GAAP EPS | $7.65 ± $0.25 | $7.80 ± $0.25 | Not consistently available | +$0.15 midpoint | Raised | Scale and operating disciplineApproximately $4.64 required in H2 |
| FY2025 ISG growth | More than 20% | Approximately 30% | Not consistently available | Raised materially | Raised | AI-server demandAbout $23.2B ISG revenue required in H2 |
| Q3 revenue | Not previously guided | $24–25B | Approximately $24.6B | New guide | New | AI growth offset by delayed PC refreshNear consensus |
| Q3 non-GAAP EPS | Not previously guided | $2.00 ± $0.10 | Approximately $2.10–2.17 | New guide | New | Profit weighted to Q4Below Street |
The environment supported a higher ISG revenue outlook but reinforced gross-margin dilution and backlog-conversion risk.
The annual raise required a stronger fourth quarter, especially in CSG and storage, while AI-server demand supplied the main buffer.
The market rewarded the AI and full-year raise, then focused on the below-seasonal Q3 profit guide and low incremental AI margins.
A 4.3% first-day gain faded to flat by day two and reversed to about -7.9% after five sessions.
| Window | Stock | vs benchmark | vs peers |
|---|---|---|---|
| 1D | +4.3% | +3.3% | +1.5% |
| 2D | +0.0% | +1.1% | -0.9% |
| 5D | -7.9% | -4.6% | -2.5% |
AI orders and traditional-server demand strengthened, but delivery timing and low hardware differentiation constrained margin conversion.
Strong AI orders of $3.2B , up from $2.6B prior quarter
Orders $3.2B vs $3.1B shipped; backlog flat at $3.8B ; delivery lumpiness holds back revenue recognition
High-margin North America storage recovered ; PC replacement pushed toward Win10 EOL (Oct-2025) with modest F3Q PC growth
Delivery gated by customer readiness and lumpy AI delivery schedules rather than channel overhang
Management indicated it could ship more if GPUs and customer sites were ready ; F3Q AI guided down Q/Q on timing
GM erosion driven by mix shift to AI-optimized servers and competitive CSG pricing , not a broad cost spike
AI-server orders are largely fungible between ODMs with low differentiation; relationships and attach are the moat
Estimated AI-server GMs ~8-14% , in line with / slightly below SMCI; no pricing below SMCI
Consensus snapshots are reconstructed from contemporaneous broker notes; the flattened AlphaSense export does not preserve stable document URLs.
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