DELL Stock Rallies After-Hours As AI Server Revenues Surge Over 750%, Driving Robust Q2, Full-Year Guidance

• First-quarter sales climbed 88% on demand for artificial intelligence products. 
• Dell’s Q1 adjusted earnings of $4.86 a share exceeded analyst expectations.
• The company booked $24.4 billion in AI orders and generated $16.1 billion in AI server sales in Q1.

Dell Technologies (DELL) share price soared 38% after-hours on Thursday after the company reported a record-breaking 88% surge in first-quarter revenue, fueled by enterprise and hyperscaler demand for its artificial intelligence infrastructure. 

The personal computer hardware maker also raised its financial forecasts for the year, projecting that its sales of specialized artificial intelligence servers will reach approximately $60 billion. 

The Round Rock, Texas-based company posted revenue of $43.8 billion for its fiscal first quarter ended May 1, soundly beating Wall Street estimates of roughly $35.5 billion. Dell’s net income climbed sharply to a record diluted earnings per share of $5.24. On an adjusted basis, the company delivered a record non-GAAP diluted earnings per share of $4.86, up 214% from the same period last year and far outpacing the $2.95 analyst consensus.

The explosive performance underscores a massive corporate transformation. Dell, once primarily known for personal computers and traditional enterprise hardware, has successfully positioned itself at the center of the global artificial intelligence buildout through pivoting into AI servers. 

Revenue from its AI server business came in at $16.13 billion, a 757% year-on-year surge as the rise in agentic AI usage has ushered in a need for servers that can provide vast computing power to tackle massive datasets to teach and operate AI applications.

As customers move their focus from training AI models to using them, it creates opportunities for Dell products beyond AI servers, Chief Financial Officer David Kennedy said in an interview on Bloomberg Television. “That makes it a more broad-based durable growth over the long term for us,” he said. 

DELL Q2 AND FY27 Guidance 

In the current second quarter, Dell expects revenue to be $44 billion to $45 billion, with adjusted earnings of $4.80 a share at the midpoint. Analysts expect $35.1 billion in sales and $2.99 a share in adjusted earnings, per Fiscal.ai. 

For the full year, revenue is expected to be between $165.0 billion and $169.0 billion, up 47% year over year at the midpoint of $167.0 billion, which beat expectations of $143.9 billion. AI-Optimized Servers revenue in FY27 expected to be roughly $60 billion, up 144% year over year. 

DELL Retail View 

Retail sentiment on Stocktwits was “extremely bullish” with “extremely high” message volumes. 

One user highlighted bullishness by saying it was an awful day to be short on Dell stock. 

DELL stock has soared 152% year-to-date.

Read More: PATH Stock Slips After-Hours On Q1 Earnings Miss, But Q2 And Full-Year Guidance Beats Expectations

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