Dell Technologies' stock rose about 40% in after-hours trading after the company issued guidance that materially exceeded analyst expectations. Dell said accelerating demand for AI infrastructure is a key growth driver and could materially boost revenue in coming years.
Key figures and guidance
- Dell now forecasts approximately $167 billion in revenue for the fiscal year ending January 2027, up from its prior outlook of $140 billion and above the analyst consensus of $142.1 billion.
- The company expects AI-optimized servers could account for as much as $60 billion of total revenue.
Quarterly results and order backlog
Dell also reported results for its first fiscal quarter:
- Revenue rose 88% to $43.8 billion, versus an average analyst estimate of $35.5 billion.
- Adjusted earnings per share were $4.86, compared with the $2.99 consensus.
- The company booked $24.4 billion of new AI-server orders in a single quarter.
- Revenue from AI systems reached $16.1 billion in the quarter, and the AI-server order backlog stood at $51.3 billion at quarter end.
Business segments
Performance was broad-based:
- Sales of traditional CPU-based servers nearly doubled to $8.5 billion.
- The client business, which includes personal computers, grew 17% to $14.6 billion.
Customers and contracts
Dell supplies cloud AI providers such as CoreWeave and Nscale, as well as large enterprises and AI developers. Separately, the company was awarded a $9.7 billion contract by the U.S. Army this week to assist in managing Microsoft software licenses.
Market impact
Following the results and upgraded outlook, Dell's shares jumped almost 40% in after-hours trading. Prior to yesterday’s surge, the stock had already risen 152% so far this year.
This article is not investment advice or a recommendation.
