Key Highlights
- Dell Technologies jumped 38% following record-breaking Q1 revenue of $43.8 billion, driven by a 757% surge in AI server sales
- NetApp and Hewlett Packard Enterprise climbed sharply, riding the wave of Dell’s impressive performance
- The S&P 500 continues its winning streak, poised for a ninth consecutive week of positive returns
- AST SpaceMobile and Rocket Lab shares declined following Thursday night’s Blue Origin rocket explosion
- SentinelOne and Gap led decliners, falling approximately 20% and 16% respectively
Dell Technologies delivered blockbuster quarterly earnings on Thursday, propelling its stock price 38% higher during Friday’s premarket session. The technology giant announced Q1 revenue reaching $43.8 billion, representing an impressive 88% increase year over year.
The most remarkable metric was AI server revenue, which skyrocketed 757% versus the comparable quarter last year. Dell upgraded its fiscal 2027 full-year guidance, projecting revenue in the range of $165 billion to $169 billion. This forecast significantly exceeds the $142 billion consensus estimate from Wall Street analysts.
Broad-Based Technology Sector Gains
Dell’s exceptional performance triggered a ripple effect throughout the technology industry. Hewlett Packard Enterprise shares surged more than 19%, while NetApp experienced gains exceeding 15% following its own impressive earnings report. International Business Machines advanced 5.5%, and Super Micro Computer climbed 9.2%.
NetApp delivered adjusted earnings of $2.43 per share alongside revenue totaling $1.95 billion. The storage solutions provider attributed its success to robust demand for premium all-flash storage systems, fueled by artificial intelligence computing requirements.
Okta shares advanced 7.8% after the identity management company posted revenue of $765 million, marking an 11% year-over-year increase. PagerDuty surged 13% following better-than-expected results, coupled with the announcement of a new chief executive and a $100 million stock repurchase program.
The S&P 500 index remains on track for its ninth straight week of gains. This sustained rally has been predominantly powered by strong AI-focused earnings reports throughout the technology sector.
Aerospace Sector Faces Setback
Not all sectors enjoyed positive momentum. Space-related equities experienced sharp declines after a Blue Origin rocket failed and exploded during a Thursday night launch.
AST SpaceMobile plummeted 14% while Rocket Lab retreated 5.6% in premarket activity. Both companies had experienced remarkable gains of nearly 90% throughout the previous month, supported by growing anticipation surrounding the forthcoming SpaceX IPO.
Among the day’s underperformers, SentinelOne tumbled almost 20% after delivering revenue of $276.66 million, marginally below analyst projections. The cybersecurity firm also indicated impending workforce reductions.
Gap shares declined 15.8% following disappointing sales figures at its Old Navy and Banana Republic divisions. The apparel retailer reduced its full-year net sales growth projection to a range of 1% to 2%.
American Eagle Outfitters fell 11.3% despite exceeding both revenue and earnings expectations. Comparable store sales for its flagship brand decreased 2%, falling short of the anticipated 3% increase.
Elastic dropped 7.3% after providing conservative near-term guidance, even though Q4 revenue climbed 16% to $451 million.
Friday’s market action highlights a bifurcated environment, where powerful AI-driven earnings are elevating select technology stocks while retail chains and cybersecurity companies encounter headwinds.
Dell’s updated full-year adjusted earnings projection of $17.90 per share at the midpoint substantially surpasses the $13.12 analyst consensus that existed before the earnings announcement.
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