Key Takeaways:
- Revenue surged 88% to $43.84B, crushing estimates by roughly $8.4B
- AI server revenue jumped 757% to $16.1B, with $24.4B in new orders
- FY27 revenue guidance raised to $165B-$169B, well above $144B consensus
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Dell surges 27% after hours on record earnings and raised guidance
Dell Technologies reported Q1 revenue of $43.84B, up 88% year over year, crushing estimates by roughly $8.4B.
"Think semiconductor companies, big tech, that are using it to actually drive some of the inference workloads and agentic workloads inside their environment," Jeff Clarke, vice chairman and operating chief at Dell, said on the analyst call.
Adjusted earnings per share jumped 214% to $4.86, the fastest pace of profit growth since Dell returned to the public market in 2018. AI-optimized server revenue, powered by Nvidia's graphics processing units, exploded 757% to $16.1B, accounting for more than a third of total sales. The Infrastructure Solutions Group posted $29B in revenue, up 181%, with growth accelerating across both AI servers and traditional servers and networking gear. The Client Solutions Group added $14.6B, up 17%, driven by commercial PC demand. Dell booked $24.4B in AI orders during the quarter alone and now serves more than 5,000 AI server customers spanning neoclouds, sovereign clients and enterprises. Net income more than tripled to $3.44B from $965M a year earlier, while operating cash flow exceeded $4.1B.
Shares surged as much as 29% in extended trading after management raised the full-year outlook sharply. Dell now expects fiscal 2027 revenue between $165B and $169B, up from a prior $140B midpoint and well above the $144B analysts had modeled. Adjusted EPS guidance jumped to $17.90, against a $13.16 consensus. The company lifted its AI server revenue target to roughly $60B from $50B, implying 144% growth. For the fiscal second quarter, Dell forecast $44B to $45B in revenue and $4.80 in adjusted EPS, both far exceeding analyst estimates of $34.97B and $2.98.
The results follow a $9.7B Pentagon contract awarded to Dell earlier this week for Microsoft 365 services across the military and intelligence community. The guidance raise shows management expects AI infrastructure demand to continue accelerating. Investors will watch the Q2 earnings call for updates on ISG margin trajectory and whether the $43B AI backlog expands further.
This article is for informational purposes only and does not constitute investment advice.
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