Key Highlights
- DELL shares surge 10% following adjusted EPS of $7.04, significantly exceeding the analyst consensus of $4.91
- Quarterly revenue reached $46.97 billion, surpassing expectations of $44.92 billion with nearly 60% year-over-year growth
- Forward guidance for Q3 projects $49 billion in revenue and $6.50 EPS, substantially above Street estimates
- The company secured $60.9 billion in AI server orders during the quarter, bringing total backlog to $95 billion
- Multiple firms increased price targets, with JPMorgan moving to $635 and Citi raising to $600, both maintaining Buy ratings
Shares of Dell Technologies (DELL) climbed 10% as Wednesday’s trading session began, following the company’s blowout quarter fueled by robust demand for AI servers.
The company reported adjusted earnings per share of $7.04, more than tripling compared to the same period last year and crushing the Street consensus of $4.91. Total revenue climbed to $46.97 billion, marking a nearly 60% increase year-over-year and topping analyst projections of $44.92 billion.
Dell’s equity has delivered remarkable returns, more than tripling since January and posting gains approaching 240% year-to-date prior to Wednesday’s trading.
Artificial Intelligence Infrastructure Fuels Exceptional Results
The star performer was undoubtedly Dell’s AI server segment. During the quarter, the technology giant recorded $60.9 billion in new AI server orders, elevating its cumulative backlog to an impressive $95 billion. These figures provide compelling evidence of sustained demand.
JPMorgan’s Joseph Cardoso elevated his price objective on DELL from $565 to $635 while maintaining his Buy recommendation. He characterized the period as “another robust quarter” and noted that “the AI momentum spoke for itself.” Cardoso also highlighted an ongoing IT infrastructure modernization cycle and better-than-anticipated personal computer sales.
Management’s Q3 forecast anticipates $49 billion in revenue alongside adjusted earnings of $6.50 per share. Analysts had previously estimated $41.42 billion in sales and $4.49 in earnings. The company also revised its full-year revenue projection upward to $192 billion from $167 billion, while boosting adjusted EPS guidance to $25.50 from $17.90.
Wall Street Firms Elevate Price Objectives
Citi analyst Asiya Merchant increased her price target to $600 from $515 while reaffirming her Buy stance. She described the quarterly performance as a “clear beat” and expressed confidence that growing enterprise AI deployment will sustain Dell’s positive trajectory.
TD Cowen’s Krish Sankar boosted his target to $500 from $450 but maintained a Hold rating. He characterized the outcome as another “stunning beat and raise” and projected AI server revenue could reach $74 billion in fiscal 2027. Sankar also observed strengthening demand for traditional server upgrades and early interest in agentic AI processors.
Morgan Stanley adjusted its target upward to $499 from $434 but raised questions about demand sustainability following Dell’s recent pricing adjustments.
Collectively, Dell receives a Moderate Buy consensus rating from 20 Wall Street analysts, comprising 13 Buy recommendations and seven Hold ratings issued over the past three months. The mean 12-month price target of $581.78 suggests approximately 28% upside potential from present levels.
Dell’s cumulative backlog currently stands at $95 billion, with the latest quarter contributing $60.9 billion in new AI server bookings alone.
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