Key Highlights
- Dell Technologies delivered 88% year-over-year revenue expansion to $43.84 billion, crushing analyst projections of $35.43 billion.
- The AI server segment exploded 757% compared to last year, generating $16.1 billion in revenue with $24.4 billion in new orders during the quarter.
- Full-year revenue guidance was upgraded to a range of $165–$169 billion, with AI server revenue alone projected at $60 billion for fiscal 2027.
- Net profit surged more than threefold to $3.44 billion, while adjusted earnings per share of $4.86 significantly exceeded the $2.94 analyst consensus.
- Shares rocketed nearly 39% during after-hours trading, reaching a peak of $443.86 compared to the closing price of $317.05.
Dell Technologies delivered its most impressive revenue performance since its 2018 return to public trading, powered by unprecedented demand for artificial intelligence infrastructure. Shares exploded nearly 39% in extended trading Thursday evening, climbing to $443.86 after the regular session ended at $317.05.
Quarterly revenue reached $43.84 billion for the period ending May 1 — representing an 88% year-over-year increase that dramatically surpassed Wall Street’s $35.43 billion estimate. Adjusted earnings per share of $4.86 handily beat the $2.94 analyst forecast.
These figures represent Dell’s strongest quarterly growth since its 2018 initial public offering, which occurred five years after Michael Dell took the company private. The previous record was 39% growth, achieved in the immediately preceding quarter.
Net earnings surged more than threefold to $3.44 billion, translating to $5.24 per share, compared with $965 million, or $1.37 per share, in the same period last year.
AI Infrastructure Powerhouse Performance
AI servers emerged as the dominant force behind Dell’s exceptional quarterly performance. This segment generated $16.1 billion in revenue, marking a staggering 757% increase from the prior year as organizations ranging from cloud hyperscalers to traditional enterprises accelerated their AI infrastructure deployments.
The company disclosed it now serves more than 5,000 AI server clients. New orders totaled $24.4 billion during the quarter, bringing the total AI server order backlog to $51.3 billion at period end.
Looking ahead to fiscal 2027, Dell has increased its AI server revenue projection to $60 billion, up from the previous $50 billion forecast. This revised target implies approximately 144% year-over-year growth.
Dell’s Infrastructure Solutions Group — encompassing servers and data center hardware — recorded a 181% revenue jump to $29 billion. This performance significantly exceeded the $22.4 billion analyst consensus estimate.
Conventional server products also delivered impressive results. Revenue from CPU-powered servers nearly doubled to $8.5 billion. Chief Operating Officer Jeff Clarke highlighted that semiconductor manufacturers and major technology firms are deploying these systems for inference processing and agentic AI workloads.
Forward Guidance and Cost Pressures
For the second quarter, Dell provided guidance calling for adjusted earnings per share of $4.80 and revenue between $44–$45 billion. Wall Street analysts had expected $2.98 in EPS and $34.97 billion in revenue.
Full-year fiscal 2027 projections were elevated to $165–$169 billion in revenue with adjusted EPS of $17.90. The LSEG analyst consensus stood at $142.5 billion in revenue and $13.09 in earnings per share.
The technology giant has confronted escalating component costs. Dell implemented price increases in January, and Clarke indicated that repricing adjustments are occurring regularly due to inflationary pressures affecting memory chips, central processing units, hard disk drives, and raw materials. He cautioned that this cost pressure will likely persist.
Supply chain limitations are anticipated during the latter half of fiscal 2027 for memory components, standard processors, and storage drives.
Earlier this week, the Department of Defense granted Dell a five-year contract valued at $9.7 billion to administer Microsoft 365 licensing throughout the United States military. Evercore ISI analysts noted this agreement provides Dell with revenue diversification beyond the AI server marketplace.
Dell’s personal computer business, operating as the Client Solutions Group, expanded revenue 17% to $14.6 billion, surpassing the $12.8 billion analyst estimate.
Prior to Thursday’s market close, DELL shares had already gained more than 150% year-to-date.
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