TLDR
- Dell stock jumps as AI server revenue fuels record Q1 growth.
- Dell rallies after 88% revenue growth and stronger FY27 guidance.
- AI demand lifts Dell revenue, earnings, and after-hours stock gains.
- Dell posts record Q1 results as AI servers drive sharp growth.
- Dell shares surge after AI orders boost revenue and guidance.
Dell Technologies (DELL) stock jumped after hours after the company reported record first-quarter revenue and stronger full-year guidance. The rally followed sharp growth in AI server demand, which lifted infrastructure sales and earnings. DELL closed at $317.05, up 3.84%, then surged to $438.58 after hours, up 38.33%.
AI Server Demand Powers Record First Quarter
Dell Technologies reported fiscal 2027 first-quarter revenue of $43.8 billion, up 88% from a year earlier. The company also posted diluted earnings per share of $5.24, up 282% year over year. Meanwhile, non-GAAP diluted earnings per share rose 214% to $4.86.
The sharp growth came as enterprises increased spending on AI infrastructure, servers, storage, and networking equipment. Dell booked $24.4 billion in AI orders during the quarter. It also recognized $16.1 billion in AI server revenue, marking a 757% yearly jump.
The company raised its full-year AI-optimized server revenue outlook to roughly $60 billion. That target represents 144% year-over-year growth and shows stronger demand across large-scale computing markets. Additionally, Dell lifted its full-year revenue outlook to $167 billion at the midpoint.
Infrastructure Group Leads Dell’s Revenue Expansion
Dell’s Infrastructure Solutions Group delivered record revenue of $29.0 billion, up 181% from the prior year. AI-optimized servers formed the largest growth driver, while traditional servers and networking also improved strongly. Traditional servers and networking revenue reached $8.5 billion, up 92% year over year.
Storage revenue reached $4.3 billion, up 8% from the same period last year. The segment also generated operating income of $3.1 billion, up 206% year over year. As a result, ISG contributed 72% of Dell’s total reportable segment operating income.
Client Solutions Group revenue also increased as commercial demand improved. CSG revenue rose 17% to $14.6 billion during the quarter. Commercial client revenue reached a record $13.0 billion, while consumer revenue climbed 9% to $1.6 billion.
Dell Raises Guidance After Strong Cash Flow
Dell generated $4.1 billion in operating cash flow during the first quarter. Adjusted free cash flow reached $3.2 billion, up 42% from a year earlier. The company also returned $2.1 billion to shareholders through buybacks and dividends.
For the second quarter, Dell expects revenue between $44.0 billion and $45.0 billion. The midpoint of $44.5 billion implies 49% year-over-year growth. It also expects second-quarter non-GAAP diluted earnings per share of $4.80 at the midpoint.
For fiscal 2027, Dell expects revenue between $165.0 billion and $169.0 billion. The midpoint suggests 47% yearly growth, supported by AI servers and enterprise infrastructure demand. The company also expects non-GAAP diluted earnings per share of $17.90 at the midpoint.
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