Key Highlights
- Dell (DELL) stock skyrocketed more than 32% following first quarter fiscal 2027 earnings showing revenue of $43.8 billion, an 88% increase compared to the same period last year
- Earnings per share reached $4.86, demolishing analyst projections of $2.96 by a margin of $1.90
- AI server revenue exploded 757% year-over-year to reach $16.1 billion, while the company secured $24.4 billion in AI-related orders during the three-month period
- The company increased its fiscal 2027 annual revenue forecast to $165–$169 billion, a significant jump from the previous estimate of approximately $140 billion
- Analysts across Wall Street rapidly increased their price targets, with JPMorgan setting a $500 target and Loop Capital reaching as high as $550
Shares of Dell Technologies (DELL) exploded more than 32% higher on Friday, finishing the trading session at $420.91, following the release of fiscal 2027 first quarter financial results that significantly exceeded Wall Street’s projections across virtually all metrics.
The company generated $43.8 billion in quarterly revenue, representing an 88% surge from the prior year period, crushing analyst forecasts of $35.5 billion. Earnings per share reached $4.86, far surpassing the consensus estimate of $2.96 — an impressive beat of $1.90 per share.
The standout performance came from Dell’s AI server business. The company disclosed $16.1 billion in AI-optimized server sales, marking a staggering 757% increase compared to last year. Dell secured $24.4 billion worth of AI server orders throughout the quarter and maintained a robust backlog totaling $51.3 billion in pending AI server orders.
Company executives increased their full-year fiscal 2027 revenue projection to between $165 and $169 billion, with AI servers expected to contribute $60 billion alone. This represents a substantial upgrade from the previous forecast of approximately $140 billion. Wall Street consensus had anticipated roughly $142.1 billion.
Analysts Rush to Increase Price Targets
Financial analysts moved swiftly to revise their outlook. Citi boosted its price target to $475 from $290 while maintaining its Buy rating, observing that “demand continues to exceed supply, supporting visibility into a sustained backlog through year-end.”
Evercore ISI elevated its target to $450 from $270 with an Outperform rating, characterizing the results as proof of “a much stronger server cycle than previously expected.” The firm highlighted that Dell continues facing supply constraints, suggesting better component allocations could drive estimates even higher.
JPMorgan upgraded its price target from $280 to $500, pointing to enhanced clarity regarding a higher sustainable earnings trajectory. The investment bank now applies a 25x valuation multiple to Dell, compared to the high-teens range previously used.
Loop Capital set the most aggressive target, raising it to $550 while describing the quarter as “a historic blowout” fueled by AI infrastructure expansion and improved operating leverage.
Wells Fargo increased its target to $505 from $270, while Melius Research established a $565 price objective. According to MarketBeat tracking, the consensus analyst target now stands at $421, with the stock receiving 20 Buy ratings, one Strong Buy, eight Hold ratings, and a single Sell rating.
Massive Order Backlog Signals Sustained Growth Trajectory
Dell’s $51.3 billion AI server order backlog represents the most compelling evidence that customer demand remains robust. Management acknowledged ongoing supply constraints, suggesting actual revenue could climb even higher if the company can secure adequate component supply to fulfill orders.
Crake Asset Management expanded its Dell position by 8.2% during the fourth quarter, increasing its holdings to 835,348 shares valued at approximately $105.2 million. Institutional ownership of the company now represents 76.37% of outstanding shares.
DELL shares opened Friday’s session at $420.96. The stock’s 52-week low sits at $106.38, indicating shares have approximately quadrupled from their lowest point. The 50-day moving average was positioned at $216.82 prior to Friday’s dramatic rally.
Looking ahead to the second quarter of fiscal 2027, Dell provided guidance for earnings per share of $4.80, while the full-year EPS forecast stands at $17.90.
