TLDR
- Dell delivered Q4 adjusted earnings per share of $3.89, surpassing the Street’s $3.52 forecast, while revenue reached $33.4 billion — a 39% annual increase.
- Revenue from AI-optimized servers skyrocketed 342% to $9.0 billion, supported by an unprecedented $43 billion order backlog.
- FY2027 revenue guidance of $138–$142 billion significantly exceeds Wall Street’s $124.9 billion expectation.
- Shares climbed more than 13% in extended trading, hitting $137.40.
- The company increased its quarterly dividend by 20% and authorized an additional $10 billion for stock buybacks.
Dell Technologies crushed Wall Street’s forecasts for its fiscal fourth quarter, delivering impressive results that propelled shares sharply higher in after-hours trading.
The tech giant reported adjusted earnings of $3.89 per share, comfortably topping analyst projections of $3.52. Quarterly revenue totaled $33.4 billion, representing a robust 39% increase year-over-year and exceeding the $31.41 billion Wall Street anticipated.
The standout performance came from AI servers. Dell’s Infrastructure Solutions Group generated $9.0 billion in AI-optimized server revenue — representing a staggering 342% year-over-year surge.
Yes, you read that correctly.
Additionally, the company disclosed a record AI server order backlog totaling $43 billion. Throughout the complete fiscal year, Dell secured over $64 billion in AI-optimized server orders while delivering more than $25 billion in shipments.
“The AI opportunity is transforming our company,” said Jeff Clarke, vice chairman and COO. “We are entering FY27 with record backlog of $43 billion — powerful proof that our engineering leadership and differentiated AI solutions are winning.”
FY2027 Outlook
Dell’s forward-looking guidance matched the strength of its quarterly performance. Management forecasted FY2027 revenue ranging from $138 billion to $142 billion — substantially higher than the Street’s $124.9 billion estimate.
Full-year earnings guidance landed at $12.90 per share, compared to Wall Street’s $11.49 forecast. The company anticipates first-quarter revenue will climb 51% versus the prior-year period.
Dell projects AI server revenue will reach roughly $50 billion during the current fiscal year, representing a 103% jump from FY2026.
Regarding shareholder returns, the company boosted its quarterly cash dividend by 20% and added $10 billion to its share buyback authorization.
A Note of Caution
Despite the strong numbers, some skepticism emerged. BofA Securities analysts highlighted concerns about demand elasticity, noting “swift and significant price actions” implemented by Dell recently.
The company raised server prices on December 10, partially driven by escalating memory chip costs. PC pricing adjustments followed in early January.
Clarke addressed the price hikes, characterizing them as necessary responses to rising input costs rather than strategic demand management.
Extended-hours trading pushed DELL shares to $137.40, representing a 13.21% gain following the earnings announcement. By Friday’s premarket session, the stock maintained gains exceeding 12%.
The unprecedented $43 billion AI server backlog entering FY2027 stands as the company’s most compelling data point heading into the new fiscal year.
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