Key Highlights
- Dell Technologies delivered 88% year-over-year revenue expansion, reaching $43.84 billion and crushing Wall Street’s $35.43 billion estimate.
- AI-optimized server revenue exploded 757% annually to $16.1 billion, while the company secured $24.4 billion in AI server orders during the quarter.
- Full-year revenue guidance was elevated to $165–$169 billion, with AI server revenue alone projected at $60 billion for fiscal 2027.
- Quarterly net income jumped more than three-fold to $3.44 billion, while adjusted earnings per share of $4.86 exceeded consensus forecasts of $2.94.
- Shares rocketed nearly 39% during after-hours trading, reaching $443.86 from a closing price of $317.05.
Dell Technologies posted its most impressive revenue acceleration since re-entering public markets in 2018, propelled by unprecedented AI server demand. Shares skyrocketed nearly 39% in extended-hours trading Thursday, climbing to $443.86 after the regular session close at $317.05.
Quarterly revenue totaled $43.84 billion for the period ending May 1 — representing an 88% year-over-year surge that demolished analyst projections of $35.43 billion. Adjusted earnings per share of $4.86 significantly outpaced the Street’s $2.94 expectation.
These figures represent the strongest quarterly growth rate since Dell’s 2018 return to public trading, which occurred five years after Michael Dell took the company private. The previous peak growth rate stood at 39%, achieved in the immediately preceding quarter.
Quarterly net income surged to $3.44 billion, or $5.24 per diluted share, compared to $965 million, or $1.37 per share, in the year-ago period.
AI Infrastructure Powers Record Performance
AI servers emerged as the primary catalyst for the exceptional results. This segment generated 757% annual growth, reaching $16.1 billion in revenue as organizations ranging from cloud hyperscalers to enterprises rushed to deploy AI infrastructure.
Dell disclosed that its AI server customer base now exceeds 5,000 organizations. The company captured $24.4 billion in AI server orders during the quarter and closed the period with an AI server backlog totaling $51.3 billion.
For the current fiscal year 2027, Dell elevated its AI server revenue projection to $60 billion, up from the previous $50 billion estimate. This target implies approximately 144% year-over-year growth.
The Infrastructure Solutions Group — encompassing servers and data center hardware — recorded a 181% revenue surge to $29 billion. This performance significantly exceeded analyst expectations of $22.4 billion.
Traditional CPU-based servers also delivered impressive results, with revenue nearly doubling to $8.5 billion. Chief Operating Officer Jeff Clarke highlighted that semiconductor manufacturers and major technology companies are deploying these systems for inference operations and agentic AI workflows.
Forward Guidance and Cost Dynamics
For the second quarter, Dell projected adjusted earnings per share of $4.80 alongside revenue of $44–$45 billion. Wall Street analysts had anticipated $2.98 EPS and $34.97 billion in revenue.
The company elevated its fiscal 2027 full-year outlook to $165–$169 billion in revenue with adjusted EPS of $17.90. LSEG consensus estimates stood at $142.5 billion in revenue and $13.09 in earnings per share.
Dell has confronted escalating component costs. The company implemented price increases in January, and Clarke indicated that repricing actions continue regularly due to inflationary pressures affecting memory, processors, storage drives, and raw materials. He suggested this cost pressure will persist.
Supply limitations are anticipated during the latter half of fiscal 2027 for memory components, mainstream processors, and hard disk drives.
Earlier this week, the Department of Defense granted Dell a five-year contract valued at $9.7 billion to administer Microsoft 365 licensing throughout U.S. military operations. Evercore ISI analysts noted this agreement provides Dell with revenue diversification beyond AI server sales.
The Client Solutions Group, Dell’s PC business unit, expanded revenue 17% to $14.6 billion, surpassing the $12.8 billion analyst estimate.
As of Thursday’s market close, Dell shares had climbed more than 150% year-to-date.
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