TLDR
- Dell Technologies shares skyrocketed 38% following unprecedented Q1 revenue of $43.8 billion and explosive 757% growth in AI server sales
- NetApp and Hewlett Packard Enterprise experienced significant gains riding Dell’s earnings momentum
- The S&P 500 continues its winning streak, poised for a ninth consecutive week of positive returns
- AST SpaceMobile and Rocket Lab shares declined following Thursday evening’s Blue Origin rocket explosion
- Major losers included SentinelOne and Gap, plummeting approximately 20% and 16% respectively
Dell Technologies delivered exceptional quarterly performance on Thursday, propelling its stock price up 38% during Friday’s premarket session. The technology giant announced first-quarter revenue reaching $43.8 billion, representing an impressive 88% increase compared to the previous year.
The headline figure came from AI server sales, which exploded 757% versus the prior-year period. Dell simultaneously elevated its full-year fiscal 2027 outlook, projecting revenue in the $165 billion to $169 billion range. This projection significantly exceeds the $142 billion consensus estimate from Wall Street analysts.
Technology Sector Gains Momentum on Impressive Results
Dell’s outstanding performance created positive ripple effects throughout the technology sector. Hewlett Packard Enterprise shares advanced more than 19%, while NetApp experienced gains exceeding 15% following its own impressive earnings report. International Business Machines increased 5.5%, and Super Micro Computer rallied 9.2%.
NetApp announced adjusted earnings reaching $2.43 per share on $1.95 billion in revenue. The storage solutions provider highlighted robust demand for premium all-flash storage systems, fueled by artificial intelligence computing requirements.
Okta advanced 7.8% after delivering $765 million in revenue, marking an 11% year-over-year increase. PagerDuty surged 13% following better-than-expected results and the announcement of a new chief executive alongside a $100 million stock repurchase program.
The S&P 500 maintains its trajectory toward a ninth straight week of gains. This extended rally has been predominantly powered by AI-focused earnings throughout the technology industry.
Aerospace Stocks Decline Following Launch Failure
Not all sectors enjoyed positive momentum. Aerospace-related equities experienced sharp declines after a Blue Origin rocket explosion occurred late Thursday evening.
AST SpaceMobile tumbled 14% while Rocket Lab slipped 5.6% in premarket activity. Both companies had experienced remarkable gains of nearly 90% throughout the previous month, fueled by anticipation surrounding the forthcoming SpaceX IPO.
Among the day’s underperformers, SentinelOne plunged nearly 20% after reporting $276.66 million in revenue, falling marginally short of projections. The cybersecurity firm also indicated forthcoming workforce reductions.
Gap declined 15.8% after revealing disappointing sales performance at Old Navy and Banana Republic locations. Management reduced its annual net sales growth projection to a range between 1% and 2%.
American Eagle Outfitters retreated 11.3% despite surpassing revenue and earnings expectations. Comparable sales for its flagship brand decreased 2%, falling short of the anticipated 3% improvement.
Elastic dropped 7.3% after providing conservative near-term guidance, even though fourth-quarter revenue climbed 16% to $451 million.
Friday’s trading action highlights a bifurcated market environment, where powerful AI-related earnings propel select technology stocks upward while retail and cybersecurity companies encounter headwinds.
Dell’s full-year adjusted earnings guidance of $17.90 per share at the midpoint substantially surpasses the $13.12 analyst consensus entering the earnings announcement.
