Key Takeaways
- Dell Technologies (DELL) stock rocketed more than 32% following first quarter fiscal 2027 earnings that demolished expectations with $43.8 billion in revenue, representing an 88% year-over-year increase
- Earnings per share reached $4.86, obliterating analyst forecasts of $2.96 by a margin of $1.90
- Revenue from AI-optimized servers skyrocketed 757% to reach $16.1 billion, while the company secured $24.4 billion worth of AI orders in just three months
- Full-year fiscal 2027 revenue projections were lifted to $165–$169 billion, significantly exceeding previous guidance of approximately $140 billion
- Analysts across Wall Street dramatically increased their price targets, with JPMorgan raising to $500 and Loop Capital targeting $550
Shares of Dell Technologies (DELL) soared more than 32% during Friday’s trading session, settling at $420.91, following the technology giant’s release of first quarter fiscal 2027 financial results that exceeded analyst projections across virtually every metric.
The company generated $43.8 billion in quarterly revenue, marking an 88% surge compared to the same period last year and significantly outpacing the $35.5 billion Wall Street consensus. Earnings per share reached $4.86, crushing the $2.96 analyst estimate by a substantial $1.90 margin.
The standout performance came from Dell’s AI infrastructure business. The company recorded $16.1 billion in AI-optimized server revenue, representing a staggering 757% year-over-year expansion. During the quarter, Dell secured $24.4 billion in new AI server orders and finished the period with an impressive $51.3 billion AI server order backlog.
Company executives elevated their full-year fiscal 2027 revenue forecast to between $165 billion and $169 billion, which includes an anticipated $60 billion contribution from AI server sales. This represents a significant upgrade from the previous outlook of roughly $140 billion. Wall Street consensus had previously projected approximately $142.1 billion.
Analyst Community Responds with Aggressive Target Increases
Financial analysts moved swiftly to revise their outlooks. Citi boosted its price objective to $475 from $290 while maintaining its Buy recommendation, observing that “demand continues to exceed supply, supporting visibility into a sustained backlog through year-end.”
Evercore ISI increased its target to $450 from $270 while keeping its Outperform rating, characterizing the results as proof of “a much stronger server cycle than previously expected.” The firm emphasized that Dell remains supply-constrained, suggesting that improved component allocations could drive estimates even higher.
JPMorgan elevated its price target from $280 to $500, pointing to enhanced clarity around a higher sustainable earnings growth trajectory. The investment bank now applies a 25x earnings multiple to Dell, up from the high-teens range previously.
Loop Capital set the most aggressive target, raising its projection to $550 and describing the quarterly performance as “a historic blowout” fueled by AI infrastructure deployment and operational efficiency gains.
Wells Fargo increased its target to $505 from $270, while Melius Research established a $565 objective. According to MarketBeat tracking data, the average analyst price target now stands at $421, with the stock carrying 20 Buy ratings, one Strong Buy rating, eight Hold recommendations, and one Sell rating.
Massive Order Backlog Signals Sustained Growth Trajectory
Dell’s $51.3 billion AI server order backlog provides the strongest evidence that enterprise demand for AI infrastructure remains robust. Company management confirmed they continue facing supply constraints, suggesting revenue could climb even higher as manufacturing capacity expands to meet incoming orders.
Crake Asset Management expanded its Dell position by 8.2% during the fourth quarter, increasing its holdings to 835,348 shares valued at roughly $105.2 million. Institutional investors collectively control 76.37% of outstanding shares.
DELL shares opened Friday’s session at $420.96. The stock’s 52-week low of $106.38 means shares have approximately quadrupled from their recent bottom. Prior to Friday’s surge, the 50-day moving average sat at $216.82.
Looking ahead, Dell provided second quarter fiscal 2027 guidance calling for EPS of $4.80, while the company’s full-year earnings per share outlook is positioned at $17.90.
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