Key Highlights
- Dell Technologies skyrocketed 38% following exceptional Q1 performance with $43.8 billion in revenue and 757% AI server sales growth
- NetApp and Hewlett Packard Enterprise experienced significant gains following Dell’s impressive earnings report
- The S&P 500 continues its winning streak, heading toward a ninth consecutive week of positive returns
- AST SpaceMobile and Rocket Lab shares declined following Thursday evening’s Blue Origin rocket failure
- SentinelOne and Gap experienced steep declines, falling approximately 20% and 16% respectively
Dell Technologies delivered exceptional quarterly performance on Thursday, propelling its stock price 38% higher during Friday’s premarket session. The technology giant announced first-quarter revenue totaling $43.8 billion, representing an impressive 88% increase year-over-year.
The most remarkable figure came from AI server sales, which exploded by 757% versus the comparable period in 2024. Dell additionally upgraded its complete fiscal 2027 outlook, projecting revenue ranging from $165 billion to $169 billion. This projection substantially exceeds the $142 billion consensus estimate from Wall Street analysts.
Technology Sector Gains Momentum Following Positive Earnings
Dell’s exceptional performance created positive momentum across the technology landscape. Hewlett Packard Enterprise shares climbed more than 19%, and NetApp experienced a surge exceeding 15% following its own earnings success. International Business Machines registered a 5.5% increase, while Super Micro Computer advanced 9.2%.
NetApp disclosed adjusted earnings reaching $2.43 per share alongside revenue of $1.95 billion. The storage solutions provider highlighted robust demand for premium all-flash storage systems, fueled by artificial intelligence computing requirements.
Okta shares appreciated 7.8% following its revenue announcement of $765 million, marking an 11% annual increase. PagerDuty surged 13% after exceeding projections and unveiling both a new chief executive and a $100 million stock repurchase program.
The S&P 500 maintains momentum toward its ninth straight weekly advance. This sustained rally reflects strong AI-focused earnings performance throughout the technology industry.
Aerospace Sector Retreats Following Launch Incident
However, certain sectors experienced difficulties. Aerospace-related equities tumbled following a Blue Origin launch vehicle explosion occurring late Thursday evening.
AST SpaceMobile declined 14% while Rocket Lab retreated 5.6% before the market opening. Both companies had experienced approximately 90% gains during the previous month, driven by enthusiasm surrounding the anticipated SpaceX public offering.
Among underperformers, SentinelOne plummeted nearly 20% despite reporting revenue of $276.66 million, marginally below analyst projections. The cybersecurity firm also indicated forthcoming workforce reductions.
Gap tumbled 15.8% following disappointing sales performance at its Old Navy and Banana Republic divisions. The retailer reduced its annual net sales growth projection to a range of 1% to 2%.
American Eagle Outfitters declined 11.3% notwithstanding exceeding both revenue and earnings expectations. Comparable sales for its flagship brand decreased 2%, falling short of the anticipated 3% increase.
Elastic retreated 7.3% after providing conservative near-term guidance, despite fourth-quarter revenue climbing 16% to $451 million.
Friday’s trading activity highlights a bifurcated market environment, where robust AI-related earnings drive select technology stocks upward while retail and cybersecurity companies encounter headwinds.
Dell’s full-year adjusted earnings projection of $17.90 per share at the midpoint significantly surpasses the $13.12 analyst consensus estimate preceding the announcement.
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