Key Highlights
- Dell (DELL) stock climbed approximately 2-3% during premarket trading Monday, building on Friday’s explosive 33% surge following exceptional Q1 FY2027 results.
- The company reported record-breaking revenue of $43.8 billion, representing an 88% year-over-year increase, while earnings per share of $5.24 exceeded projections by approximately 66%.
- AI-optimized server revenue soared to $16.1 billion, marking a staggering 757% annual increase, prompting management to elevate full-year AI server projections to $60 billion.
- The tech giant introduced its XPS 13 notebook at $699 (with educational pricing at $599), positioning itself as a direct competitor to Apple’s MacBook Neo.
- Wall Street firms including Susquehanna, Barclays, JPMorgan, and Mizuho upgraded their outlooks, with Susquehanna establishing a new $700 price objective.
Dell Technologies just delivered one of its most remarkable earnings performances in years — and the positive momentum shows no signs of stopping.
Shares were changing hands at $429.50 during Monday’s premarket session, climbing roughly 2-3% higher, following Friday’s remarkable 33% jump after the company unveiled its fiscal Q1 FY2027 financial performance. This marked Dell’s most rapid quarterly revenue expansion since its 2018 return to public trading.
The company posted record quarterly revenue of $43.8 billion, representing an 88% year-over-year leap. Diluted earnings per share reached $5.24, up 282%. The adjusted EPS figure of $4.86 significantly surpassed Wall Street’s $2.93 consensus estimate by nearly 66%.
The standout metric capturing market attention: AI-focused server revenue totaling $16.1 billion, reflecting a remarkable 757% year-over-year surge.
COO Jeff Clarke delivered the message 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.”
The company’s AI servers order backlog has reached an unprecedented $51.3 billion. That’s a figure demanding serious attention.
Wall Street Analysts Boost Targets
The extraordinary earnings report sparked significant analyst response. Susquehanna delivered the most aggressive revision, elevating Dell to Positive from Neutral while dramatically increasing its price objective to $700 from $138.
Barclays moved its target higher to $550. JPMorgan advanced to $500, highlighting Dell’s enhanced FY2027 guidance and expanding competitive positioning. Mizuho maintained its Outperform stance while adjusting its target upward from $350 to $435.
CFO David Kennedy noted the company increased its annual revenue forecast to $167 billion at the midpoint — representing nearly 50% year-over-year growth.
Additionally, Dell secured a substantial $9.7 billion Department of Defense contract for military software solutions, further strengthening what was already an impressive performance period.
New XPS 13 Challenges MacBook Neo
Over the weekend, Dell revealed the XPS 13 notebook computer, carrying a $699 price tag, with special educational pricing at $599 available during the back-to-school shopping period.
This pricing strategy places it in direct confrontation with Apple’s MacBook Neo, which debuted in March at $599, offering student discounts down to $499.
Dell’s positioning was straightforward: “XPS 13 debuts at its most affordable price point ever, matching the MacBook Neo on cost while surpassing it in functionality.”
Apple shares were trending 0.7% lower at $309.86 during Monday’s premarket activity.
Dell’s upward trajectory was gaining strength even before the earnings announcement. Multiple AI-related announcements during Dell Technologies World 2026 generated approximately 24% stock appreciation in the preceding week.
During that conference, Dell showcased advanced AI infrastructure offerings and announced expanded collaborations with Nvidia, Google, and SpaceX AI.
Competitor stocks experienced positive spillover effects as well. Lenovo Group climbed over 10% during early June 1 trading, achieving a fresh all-time peak, driven by enthusiasm surrounding AI infrastructure providers following Dell’s stellar results.
Computex 2026 is scheduled for June 1–5, centered on AI infrastructure themes, with Nvidia CEO Jensen Huang anticipated to deliver the opening keynote address on June 1.
