TLDR
- Dell Technologies posted fourth-quarter adjusted EPS of $3.89, crushing analyst expectations of $3.52, with quarterly sales hitting $33.4 billion — representing 39% growth year-over-year.
- AI-optimized server sales exploded 342% annually to $9.0 billion, supported by a massive $43 billion order backlog.
- Management’s FY2027 revenue guidance of $138–$142 billion substantially surpasses Wall Street’s consensus estimate of $124.9 billion.
- The stock surged over 13% in after-hours trading, reaching $137.40.
- Dell announced a 20% dividend hike and greenlit an additional $10 billion stock repurchase program.
Dell Technologies posted exceptional fiscal fourth-quarter results that handily beat analyst forecasts, triggering a strong rally in after-hours trading with shares jumping more than 13%.
Adjusted earnings came in at $3.89 per share, easily topping the consensus estimate of $3.52. Revenue for the quarter reached $33.4 billion, marking a substantial 39% year-over-year jump and surpassing Wall Street’s $31.41 billion projection.
The star of the quarter was unquestionably AI server performance. The company’s Infrastructure Solutions Group delivered $9.0 billion in AI-optimized server sales — an astronomical 342% increase from the same period last year.
You read that right.
Furthermore, Dell revealed an unprecedented $43 billion backlog of AI server orders. Across the entire fiscal year, the technology giant booked more than $64 billion in AI-optimized server orders while shipping over $25 billion worth of products.
“The AI opportunity is transforming our company,” said Jeff Clarke, vice chairman and COO. “We are entering FY27 with record backlog of $43 billion — powerful proof that our engineering leadership and differentiated AI solutions are winning.”
FY2027 Outlook
Dell’s guidance for the upcoming fiscal year reflected equally impressive confidence. The company projected FY2027 revenue between $138 billion and $142 billion — significantly above the Street’s $124.9 billion consensus.
Full-year earnings per share guidance of $12.90 likewise exceeded analyst forecasts of $11.49. First-quarter revenue is expected to surge 51% compared to the year-ago period.
Management anticipates AI server sales will reach approximately $50 billion during fiscal 2027, representing a 103% increase from FY2026 results.
On the capital return front, Dell boosted its quarterly cash dividend by 20% and approved a new $10 billion share buyback authorization.
A Note of Caution
Despite the stellar performance, certain analysts voiced concerns. BofA Securities raised questions about demand elasticity, pointing to “swift and significant price actions” taken by Dell in recent months.
The technology company implemented server pricing increases on December 10, driven partly by rising memory chip costs. PC pricing adjustments were introduced on January 6.
Clarke acknowledged the pricing changes but described them as appropriate responses to higher component costs rather than demand management tactics.
After-hours trading pushed DELL shares to $137.40, marking a 13.21% gain following the earnings release. During Friday’s premarket session, the stock held onto gains above 12%.
The remarkable $43 billion AI server backlog heading into FY2027 stands as the company’s strongest evidence of continuing business momentum.
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