TLDR
- Dell Technologies shares climbed approximately 2-3% during Monday’s premarket session, building on Friday’s extraordinary 33% surge following exceptional Q1 FY2027 results.
- The company reported record quarterly revenue of $43.8 billion, representing an 88% year-over-year increase, while EPS of $5.24 exceeded consensus forecasts by approximately 66%.
- AI-optimized server revenue climbed to $16.1 billion, marking a staggering 757% annual increase, prompting management to elevate full-year AI server projections to $60 billion.
- The technology giant introduced its XPS 13 notebook priced at $699 (discounted to $599 for educational customers), positioning it as a direct competitor to Apple’s MacBook Neo.
- Wall Street firms including Susquehanna, Barclays, JPMorgan, and Mizuho elevated their price objectives, with Susquehanna implementing the most aggressive increase to $700.
Dell Technologies just delivered what may be considered one of the most impressive earnings performances in its recent corporate history — and the positive momentum shows no signs of abating.
Shares traded at $429.50 during Monday’s premarket hours, reflecting a 2-3% advance, following Friday’s remarkable 33% jump triggered by the company’s fiscal Q1 FY2027 financial disclosure. This marked Dell’s strongest quarterly revenue expansion since its 2018 return to public equity markets.
Total revenue reached an all-time high of $43.8 billion, representing an 88% year-over-year climb. Diluted earnings per share landed at $5.24, reflecting a 282% increase. On a non-GAAP basis, EPS of $4.86 substantially exceeded the Street’s $2.93 consensus estimate by nearly 66%.
The standout metric capturing widespread attention: AI-focused server revenue totaling $16.1 billion, representing a 757% annual surge.
Chief Operating Officer Jeff Clarke articulated the magnitude clearly — “We secured $24.4 billion in AI-related orders and delivered $16.1 billion of AI server revenue. We’re elevating our AI server revenue projections for FY27 to $60 billion.”
Dell’s AI server order backlog currently sits at an unprecedented $51.3 billion. That figure represents a compelling indicator of sustained demand.
Wall Street Responds with Price Target Increases
The exceptional quarterly performance sparked significant analyst activity across multiple research desks. Susquehanna executed the most dramatic revision, upgrading Dell to Positive from Neutral while simultaneously raising its price objective to $700 from $138.
Barclays elevated its target to $550. JPMorgan increased its forecast to $500, citing Dell’s enhanced FY2027 guidance and competitive positioning gains. Mizuho maintained its Outperform rating while adjusting its target upward from $350 to $435.
Chief Financial Officer David Kennedy indicated the company elevated its full-year revenue projection to approximately $167 billion at the midpoint — representing nearly 50% year-over-year growth.
Adding to an already successful period, Dell secured a $9.7 billion Department of Defense contract for military software solutions, providing additional business momentum.
New XPS 13 Positioned Against Apple’s MacBook Neo
On Sunday, Dell unveiled its XPS 13 notebook computer with a retail price of $699, featuring a promotional price of $599 for academic customers during the back-to-school purchasing period.
This strategic pricing places the device in direct market competition with Apple’s MacBook Neo, which debuted in March at $599, discounted to $499 for students.
Dell positioned the offering directly: “XPS 13 arrives at its most accessible price ever, contending with the MacBook Neo on price, and exceeding it on features.”
Apple shares declined 0.7% to $309.86 during Monday’s premarket trading.
Dell’s positive trajectory had gained momentum even before the earnings announcement. Multiple AI-focused announcements at Dell Technologies World 2026 generated approximately a 24% stock appreciation during the preceding week.
During that conference, Dell introduced new AI infrastructure offerings and announced expanded collaborations with Nvidia, Google, and SpaceX AI.
Competitor stocks experienced positive spillover effects. Lenovo Group shares rose more than 10% during early June 1 trading, reaching a fresh all-time peak, driven by optimism surrounding AI infrastructure providers following Dell’s results.
Computex 2026 is scheduled for June 1–5, centered around AI infrastructure themes, with Nvidia CEO Jensen Huang anticipated to deliver a keynote presentation on June 1.
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