Key Takeaways
- Dell (DELL) stock skyrocketed approximately 32% on Friday, marking what could be its strongest single-session performance on record
- First-quarter revenue jumped almost 88% compared to last year; AI-optimized server sales reached $16.1 billion, representing a 757% surge
- Adjusted earnings per share of $4.86 significantly exceeded analyst consensus of $2.94
- Susquehanna elevated Dell to Positive rating, dramatically increasing price target from $138 to $700
- J.P. Morgan boosted its target to $500 from $280; Morgan Stanley publicly acknowledged their bearish call was incorrect
Dell Technologies delivered one of the most impressive quarterly reports in recent Wall Street history on Thursday, propelling shares upward by approximately 32% in Friday trading — potentially marking the company’s strongest single-day performance since its 2018 return to public markets.
The financial results were nothing short of extraordinary. First-quarter revenue surged nearly 88% on a year-over-year basis, propelled by unprecedented demand for AI-focused server infrastructure. Revenue from AI-optimized servers alone totaled $16.1 billion — reflecting a staggering 757% jump from the corresponding period in 2024.
Adjusted earnings per share registered at $4.86, crushing Wall Street’s consensus forecast of $2.94.
Melius Research’s head of technology analysis, Ben Reitzes, didn’t mince words: “They beat every line in the model — so this wasn’t just AI, it was great execution.”
Wall Street Rushes to Adjust Forecasts
The blockbuster results triggered an immediate flurry of price target increases and rating changes across major investment firms Friday morning.
Susquehanna delivered the most dramatic revision, elevating Dell from Neutral to Positive while quintupling its price objective to $700 from $138. The firm highlighted Dell’s ability to scale AI server production without sacrificing profitability, growing opportunities in AI inference workloads, and stronger-than-anticipated performance in its Client Solutions division.
J.P. Morgan maintained its Overweight stance while boosting its target to $500 from $280. Analyst Samik Chatterjee observed that Dell’s revised fiscal 2027 projections were elevated “materially once again,” with order demand substantially outpacing forecasts and visibility into future pipeline extending deeper into the calendar year.
Dell’s revised full-year AI revenue projection of $60 billion represents a 144% year-over-year expansion, per J.P. Morgan’s analysis.
Citi reaffirmed its Buy recommendation while elevating its target to $475 from $290, characterizing the quarterly performance as an “exceptional beat and raise” with customer demand continuing to outstrip available supply.
Morgan Stanley Concedes Misjudgment
Morgan Stanley, maintaining an Underweight rating with a $170 price target, offered a remarkably frank assessment in Friday’s research note.
“We got this one wrong, and our model/PT are under review,” wrote the analyst team headed by Erik Woodring. They described it as “one of the most impressive quarters we’ve seen in our time covering Hardware.”
Conventional server products experienced nearly 100% year-over-year expansion. Storage solutions delivered their strongest growth in 12 consecutive quarters. PC segment operating margins approached all-time peaks. Full-year guidance received an approximately 40% boost.
Dell also secured a significant Pentagon agreement valued at $9.7 billion earlier this week for military software provisioning.
Even prior to Thursday’s earnings announcement, Dell shares had already appreciated nearly threefold over the trailing twelve months.
J.P. Morgan acknowledges that a $10 billion sequential revenue deceleration is embedded in second-half projections — but emphasizes this appears attributable to supply constraints rather than weakening demand, anticipating additional upward revisions as production capacity expands.
Dell elevated its full-year revenue guidance to indicate roughly 50% year-over-year growth.
