Key Highlights
- Dell Technologies delivered 88% year-over-year revenue expansion, reaching $43.84 billion and crushing Wall Street’s $35.43 billion projection.
- The company’s AI server division generated $16.1 billion in revenue, marking a staggering 757% increase from the prior year, while securing $24.4 billion in new AI orders.
- Management elevated its fiscal 2027 revenue forecast to a range of $165–$169 billion and projects AI server sales to reach $60 billion.
- Earnings per share on an adjusted basis hit $4.86, significantly exceeding the consensus estimate of $2.94, while net profit surged past $3.44 billion.
- Shares rocketed nearly 39% during after-hours trading, climbing to $443.86 from the regular session close of $317.05.
Dell Technologies posted its most impressive quarterly revenue acceleration since rejoining public markets in 2018, powered by surging customer appetite for artificial intelligence infrastructure. The stock exploded higher by nearly 39% in extended-hours trading Thursday, reaching $443.86 after the regular session ended at $317.05.
Quarterly revenue hit $43.84 billion for the period concluded May 1 — representing an 88% year-over-year expansion that demolished analyst projections of $35.43 billion. Adjusted earnings per share came in at $4.86, substantially outpacing the $2.94 Wall Street forecast.
These figures represent the strongest quarterly growth rate Dell has achieved since its 2018 return to public trading, which occurred five years after going private. The previous peak was 39% growth, registered in the immediately preceding quarter.
Net profit jumped more than threefold to $3.44 billion, equivalent to $5.24 per share, compared with $965 million, or $1.37 per share, in the year-ago period.
Artificial Intelligence Infrastructure Powers Explosive Growth
AI servers emerged as the undeniable catalyst behind these exceptional results. This segment’s revenue skyrocketed 757% year-over-year to $16.1 billion, fueled by demand from hyperscale cloud providers and enterprise customers racing to deploy AI capabilities.
Dell disclosed it now serves more than 5,000 AI server customers. The quarter brought in $24.4 billion worth of orders, leaving the company with a robust backlog of $51.3 billion in pending AI server orders.
Looking ahead to fiscal 2027, Dell anticipates AI server revenue will reach $60 billion, an increase from its previous $50 billion projection. This would translate to approximately 144% year-over-year growth.
The Infrastructure Solutions Group — encompassing servers and data center hardware — reported a massive 181% revenue jump to $29 billion. This figure sailed past the analyst consensus of $22.4 billion.
Conventional CPU-based servers also delivered strong performance. Revenue from this category nearly doubled to $8.5 billion. Chief Operating Officer Jeff Clarke highlighted that semiconductor manufacturers and major technology companies are deploying these systems for inference processing and agentic AI workloads.
Financial Guidance and Cost Pressures
For the second quarter, Dell provided guidance calling for adjusted EPS of $4.80 and revenue between $44–$45 billion. Analysts had previously estimated $2.98 EPS and $34.97 billion in revenue.
The company elevated its full fiscal 2027 outlook to $165–$169 billion in revenue and $17.90 in adjusted earnings per share. The LSEG consensus previously stood at $142.5 billion in revenue and $13.09 EPS.
Dell has been navigating escalating component costs. The company implemented price increases in January, and Clarke indicated that ongoing repricing remains necessary due to inflation affecting memory chips, processors, storage drives, and raw materials. He suggested this cost pressure will persist.
Supply limitations are anticipated in the latter half of fiscal 2027 for memory components, standard processors, and hard disk drives.
On Wednesday, Dell secured a five-year, $9.7 billion Pentagon contract to administer Microsoft 365 licensing throughout the US military. Evercore ISI analysts noted this agreement provides Dell with revenue diversification beyond its AI server business.
The Client Solutions Group, Dell’s PC division, expanded revenue by 17% to $14.6 billion, surpassing the $12.8 billion analyst estimate.
Prior to Thursday’s closing bell, DELL shares had already climbed more than 150% year-to-date.
