TLDR
- Dell Technologies shares jumped approximately 32% on Friday, tracking toward the company’s strongest single-session performance on record
- First-quarter revenue climbed nearly 88% compared to last year; AI-optimized server sales reached $16.1 billion, representing a 757% surge
- Adjusted earnings per share of $4.86 significantly exceeded Wall Street’s $2.94 forecast
- Susquehanna elevated Dell to Positive rating, boosting price objective to $700 from $138
- J.P. Morgan increased target to $500 from $280; Morgan Stanley acknowledged its bearish stance was incorrect
Dell Technologies delivered an extraordinary earnings report on Thursday that immediately became one of the most discussed quarterly results in recent history, propelling the stock roughly 32% higher on Friday — positioning it for the strongest single-day performance since the company returned to public markets in 2018.
The financial results were undeniably impressive. First-quarter revenue soared nearly 88% versus the year-ago period, propelled by unprecedented demand for artificial intelligence infrastructure. Revenue from AI-optimized servers alone reached $16.1 billion — representing a staggering 757% year-over-year jump.
Adjusted earnings per share landed at $4.86, significantly surpassing the Wall Street consensus forecast of $2.94.
Ben Reitzes, who leads technology research at Melius, offered a straightforward assessment: “They beat every line in the model — so this wasn’t just AI, it was great execution.”
Wall Street Rushes to Revise Price Targets
The stunning quarterly performance triggered a flurry of analyst target adjustments on Friday morning.
Susquehanna delivered the most dramatic revision, elevating Dell to Positive from Neutral while dramatically increasing its price objective to $700 from $138. The firm highlighted AI server momentum without profitability pressure, growing inferencing opportunities, and stronger-than-anticipated performance in the Client Solutions division.
J.P. Morgan maintained its Overweight stance while elevating its target to $500 from $280. Analyst Samik Chatterjee observed that Dell’s revised fiscal 2027 guidance was increased “materially once again,” with demand running substantially ahead of forecasts and order pipeline visibility stretching deeper into the year.
Dell’s revised full-year AI revenue projection of $60 billion suggests a 144% annual growth rate, per J.P. Morgan’s analysis.
Citi maintained its Buy recommendation and elevated its target to $475 from $290, characterizing the quarter as an “exceptional beat and raise” with demand persistently outpacing available supply.
Morgan Stanley Acknowledges Bearish Call Was Incorrect
Morgan Stanley, which maintains an Underweight rating alongside a $170 price target, offered a forthright assessment in Friday’s research note.
“We got this one wrong, and our model/PT are under review,” analysts headed by Erik Woodring stated. They described it as “one of the most impressive quarters we’ve seen in our time covering Hardware.”
Legacy server products expanded nearly 100% year over year. Storage solutions delivered their fastest expansion in 12 quarters. Personal computer operating margins reached near-record territory. Full-year projections were elevated by close to 40%.
Dell also secured a Pentagon agreement valued at $9.7 billion this week to provide software solutions to the U.S. armed forces.
Prior to Thursday’s earnings announcement, Dell’s shares had already roughly tripled throughout the preceding 12-month period.
J.P. Morgan does note that a $10 billion sequential revenue deceleration is incorporated into second-half projections — though the firm emphasizes this appears supply-constrained rather than demand-related, and anticipates continued upward guidance revisions as manufacturing capacity expands.
Dell elevated its full-year revenue projection to reflect approximately 50% year-over-year expansion.
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