Quick Summary
- Dell shares climbed approximately 2-3% during Monday’s premarket session, building on Friday’s impressive 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 EPS of $5.24 exceeded forecasts by approximately 66%.
- AI server segment generated $16.1 billion in revenue, marking a remarkable 757% YoY jump, prompting Dell to boost full-year AI server projections to $60 billion.
- The tech giant introduced its XPS 13 notebook at $699 (discounted to $599 for students), positioning it as a direct rival to Apple’s MacBook Neo.
- Wall Street firms including Susquehanna, Barclays, JPMorgan, and Mizuho increased their price targets, with Susquehanna’s new target reaching $700.
Dell Technologies just delivered one of the most remarkable earnings performances in its modern history — and the momentum shows no signs of fading.
Shares were changing hands at $429.50 during Monday’s premarket session, gaining roughly 2-3%, following Friday’s explosive 33% jump triggered by the company’s fiscal Q1 FY2027 earnings release. This marked Dell’s strongest quarterly revenue expansion since its 2018 return to public trading.
The company delivered record-setting revenue of $43.8 billion, representing an 88% year-over-year climb. Diluted earnings per share reached $5.24, jumping 282%. Adjusted EPS of $4.86 significantly surpassed Wall Street’s consensus estimate of $2.93 by almost 66%.
The standout figure capturing everyone’s attention: AI server revenue totaling $16.1 billion, soaring 757% compared to the same period last year.
Chief Operating Officer Jeff Clarke was direct in his assessment — “We secured $24.4 billion in AI orders and delivered $16.1 billion of AI server revenue. We’re raising our AI server revenue forecast for FY27 to $60 billion.”
Dell’s AI server order backlog has reached an unprecedented $51.3 billion. That figure demands attention from any investor.
Wall Street Responds With Price Target Increases
The earnings surprise sparked widespread analyst revisions. Susquehanna delivered the most aggressive call, upgrading Dell to Positive from Neutral while catapulting its price target to $700 from the previous $138.
Barclays increased its target to $550. JPMorgan elevated its forecast to $500, highlighting Dell’s enhanced FY2027 guidance and expanding market position. Mizuho maintained its Outperform stance while adjusting its target upward from $350 to $435.
Chief Financial Officer David Kennedy noted the company elevated its full-year revenue projection to approximately $167 billion at the midpoint — representing nearly 50% year-over-year growth.
Dell also secured a substantial $9.7 billion Department of Defense contract for military software solutions, providing additional positive news during an already stellar week.
New XPS 13 Challenges Apple’s MacBook Neo
On Sunday, Dell introduced the XPS 13 notebook computer, carrying a $699 price tag, with students eligible for a reduced $599 price during the back-to-school period.
This pricing strategy creates direct competition with Apple’s MacBook Neo, which debuted in March at $599, discounted to $499 for educational customers.
Dell’s positioning was straightforward: “XPS 13 arrives at its most accessible price ever, contending with the MacBook Neo on price, and exceeding it on features.”
Apple shares were trading 0.7% lower at $309.86 during Monday’s premarket activity.
Dell’s positive momentum had been accelerating even before the earnings announcement. A series of AI-related announcements at Dell Technologies World 2026 generated approximately 24% gains in the preceding week.
During that conference, Dell introduced new AI infrastructure offerings and announced enhanced collaborations with Nvidia, Google, and SpaceX AI.
Competitor stocks benefited from the positive sentiment as well. Lenovo Group climbed more than 10% during early June 1 trading, reaching a fresh all-time peak, fueled by enthusiasm surrounding AI infrastructure companies following Dell’s strong performance.
Computex 2026 is scheduled for June 1–5, centered on AI infrastructure themes, with Nvidia CEO Jensen Huang anticipated to deliver the keynote address on June 1.
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