Key Highlights
- Dell Technologies shares climbed 10% following adjusted earnings per share of $7.04 versus the Street’s $4.91 forecast
- Quarterly revenue reached $46.97 billion, surpassing the $44.92 billion consensus and marking a nearly 60% annual increase
- Forward guidance for Q3 projects $49 billion in revenue and $6.50 EPS, significantly exceeding analyst projections
- The company secured $60.9 billion in AI infrastructure orders during the period, bringing total backlog to $95 billion
- Wall Street firms including JPMorgan and Citi boosted their price objectives to $635 and $600 respectively, maintaining bullish stances
Shares of Dell Technologies (DELL) surged 10% during Wednesday’s opening bell after the enterprise technology giant delivered exceptional quarterly results fueled by explosive artificial intelligence server demand.
The company reported adjusted earnings of $7.04 per share, representing a more than three-fold increase from the prior year and handily beating the analyst consensus of $4.91. Quarterly sales totaled $46.97 billion, climbing nearly 60% year-over-year and exceeding Wall Street’s $44.92 billion projection.
The technology company’s equity has increased more than threefold since January, with year-to-date gains approaching 240% prior to Wednesday’s trading session.
Artificial Intelligence Infrastructure Powers Results
The standout performer was undoubtedly Dell’s AI server division. During the quarter, the firm secured $60.9 billion in new AI server contracts, elevating its aggregate order backlog to $95 billion. These figures represent the type of performance that leaves little room for skepticism.
JPMorgan’s Joseph Cardoso elevated his price objective on DELL shares from $565 to $635 while reaffirming his Buy recommendation. He characterized the results as “another robust quarter” and noted that “the AI momentum spoke for itself.” Cardoso additionally highlighted an extended IT infrastructure replacement cycle and PC demand that exceeded expectations.
Management’s third-quarter forecast anticipates $49 billion in sales alongside adjusted earnings of $6.50 per share. The Street had previously estimated $41.42 billion in revenue and $4.49 in earnings. Full-year revenue guidance was raised to $192 billion from $167 billion, while adjusted EPS projections climbed to $25.50 from $17.90.
Wall Street Boosts Price Objectives Following Strong Print
Citi analyst Asiya Merchant increased her price target to $600 from $515 while maintaining her Buy rating. She described the quarter as a “clear beat” and expressed optimism that growing enterprise AI implementation will support Dell’s continued outperformance.
TD Cowen’s Krish Sankar lifted his target to $500 from $450 but maintained a Hold rating. He labeled the results another “stunning beat and raise” and projected AI server revenue to hit $74 billion in fiscal 2027. Sankar also observed strengthening demand for traditional server upgrades and emerging interest in agentic AI processors.
Morgan Stanley raised its price objective to $499 from $434 but expressed some caution regarding demand sustainability following Dell’s recent pricing adjustments.
Currently, Dell holds a Moderate Buy consensus rating from 20 Wall Street analysts, consisting of 13 Buy recommendations and seven Hold ratings issued within the past three months. The average price target of $581.78 suggests approximately 28% appreciation potential from present levels.
Dell’s cumulative order backlog currently stands at $95 billion, with the latest quarter alone contributing $60.9 billion in AI server bookings.
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