Dell Technologies (NYSE:DELL) shares surged more than 21% on Friday after the company reported its second-quarter earnings that significantly exceeded expectations.

Dell posted adjusted earnings per share (EPS) of $1.74 on revenue of $22.93 billion, surpassing predictions of $1.14 and $20.86 billion, respectively.

In Q2, recurring revenue saw an 8% increase to $5.6 billion year-over-year, primarily propelled by higher service and software maintenance agreements, as highlighted by the company.

Following the report, Goldman Sachs analysts reiterated their Buy rating, influenced by the anticipation of sustained PC outperformance and robust demand for AI-infrastructure solutions. However, the analysts acknowledged Dell's cautious stance regarding IT spending trends, particularly the challenges from weak large corporate and global enterprise customers, despite the stability observed in government and small to medium-sized businesses. These trends might persist as a hurdle to long-term growth.