Key Highlights
- Dell stock jumped approximately 32% on Friday, potentially marking its strongest single-day performance on record
- First-quarter revenue climbed nearly 88% compared to the prior year; AI server revenue reached $16.1 billion, surging 757%
- Adjusted earnings per share of $4.86 significantly exceeded the $2.94 analyst consensus
- Susquehanna elevated Dell to Positive rating, boosting price target to $700 from $138
- J.P. Morgan increased its price objective to $500 from $280; Morgan Stanley acknowledged it “got this one wrong”
Dell Technologies delivered one of the most remarkable earnings reports in recent history on Thursday, propelling its shares up approximately 32% on Friday — potentially marking its strongest single-day performance since the company returned to public markets in 2018.
The figures were extraordinary. First-quarter revenue surged nearly 88% year over year, propelled by unprecedented demand for AI-related server infrastructure. Revenue from AI servers alone reached $16.1 billion — representing a staggering 757% jump compared to the same period last year.
Adjusted earnings per share landed at $4.86, crushing the Street consensus of $2.94.
Ben Reitzes, head of technology research at Melius, was direct in his assessment: “They beat every line in the model — so this wasn’t just AI, it was great execution.”
Wall Street Rushes to Update Price Targets
The stunning performance triggered a flurry of analyst target revisions Friday morning.
Susquehanna delivered the most aggressive adjustment, elevating Dell to Positive from Neutral while catapulting its price target to $700 from $138. The firm highlighted AI server growth without margin compression, expanding opportunities in inferencing workloads, and superior execution across the Client Solutions Group.
J.P. Morgan maintained its Overweight stance while elevating its target to $500 from $280. Analyst Samik Chatterjee observed that Dell’s revised FY27 guidance was increased “materially once again,” with demand trajectory significantly exceeding forecasts and pipeline visibility extending deeper into the fiscal year.
Dell’s revised full-year AI revenue projection of $60 billion suggests a 144% year-over-year expansion, per J.P. Morgan’s analysis.
Citi maintained its Buy recommendation while lifting its target to $475 from $290, characterizing the quarter as an “exceptional beat and raise” with demand persistently outpacing available supply.
Morgan Stanley Acknowledges Major Miss
Morgan Stanley, which maintains an Underweight rating and a $170 price objective, offered a frank assessment in its Friday note.
“We got this one wrong, and our model/PT are under review,” analysts led by Erik Woodring acknowledged. They described it as “one of the most impressive quarters we’ve seen in our time covering Hardware.”
Legacy server products expanded nearly 100% year over year. Storage solutions delivered their fastest growth in 12 quarters. PC division operating margins approached record territory. Full-year guidance received an approximately 40% boost.
Dell also secured a Pentagon agreement valued at $9.7 billion this week to provide software solutions to U.S. military operations.
Prior to Thursday’s announcement, Dell’s shares had already climbed nearly threefold over the trailing twelve months.
J.P. Morgan acknowledges that a $10 billion sequential revenue deceleration is embedded in the second-half forecast — though the firm emphasizes this constraint stems from supply limitations rather than weakening demand, and anticipates additional upward guidance revisions as supply chain visibility strengthens.
Dell elevated its full-year revenue guidance to indicate approximately 50% year-over-year expansion.
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