Dell Shares Surge After Topping Q1 Estimates as AI Server Boom Drives Record Revenue

Dell Technologies (NYSE: DELL) delivered a blockbuster fiscal first-quarter earnings report Thursday, topping Wall Street expectations on every key metric, sending shares higher in post-market trading.

The technology giant posted record quarterly revenue of $43.8 billion, up 88% year over year and more than $8 billion above the analyst consensus estimate of $35.8 billion.

Non-GAAP diluted earnings per share came in at $4.86, a stunning 64% beat against the Street’s expectation of $2.96, while GAAP diluted EPS of $5.24 surged 282% from $1.37 a year ago.

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At the heart of the beat was an explosive quarter for Dell’s Infrastructure Solutions Group (ISG), which saw AI-optimised server revenue rocket 757% year over year to $16.1 billion. Total ISG revenue hit a record $29.0 billion, up 181%. The Client Solutions Group also impressed, with record commercial client revenue of $13.0 billion, up 18%.

“We booked $24.4 billion in AI orders,” said Jeff Clarke, Vice Chairman and COO. “The AI opportunity shows no signs of slowing.”

CFO David Kennedy raised the full-year revenue outlook to $167 billion at the midpoint, representing nearly 50% year-over-year growth, with AI server revenue now forecast at $60 billion for FY27, up 144%.

Dell also returned $2.1 billion to shareholders through buybacks and dividends in the quarter, while generating a record $4.1 billion in operating cash flow.

Investors responded emphatically. While Dell’s stock rose 4% during Thursday’s regular session, closing around $320, it has jumped a further 12.8% in after-hours trading as the results crossed the wires.