Dell Technologies Inc (NASDAQ:DELL) reported mixed earnings for the first quarter but raised its full-year profit outlook amid strong demand for its AI-related systems, sending its share higher afterhours.
For the full year, adjusted earnings per share (EPS) are expected to be $9.40 at the midpoint, up 15%. This is $0.10 higher than Dell’s outlook issued earlier in the year.
Dell guided revenue in the range of $101 billion to $105 billion, up 8% at the midpoint of $103 billion and in line with estimates.
Jeff Clarke, Dell’s chief operations officer, highlighted that the company was experiencing “unprecedented” demand for its AI-optimized servers.
“We generated $12.1 billion in AI orders this quarter alone, surpassing the entirety of shipments in all of fiscal year 2025 and leaving us with $14.4 billion in backlog,” Clarke said.
For the first quarter, revenue was up 5% year-over-year at $23.4 billion, beating Wall Street expectations of $23.19 billion.
Adjusted earnings per share jumped 17% to $1.55, but this was short of estimates of $1.70.
“All of our core businesses grew as we reached $23.4 billion in revenue in our first quarter, and non-GAAP EPS grew three times faster than revenue,” Dell’s chief financial officer Yvonne McGill said in a statement.
“We generated record first-quarter cash flow from operations of $2.8 billion and returned $2.4 billion to shareholders, more than double our quarterly average since we started our capital allocation program in fiscal 2023.”
Shares of Dell added 5.2% at $119 following the release of its earnings report.