Dell Technologies Inc (NASDAQ:DELL) shares surged by 32% at Friday’s opening bell after the company reported first quarter results that significantly exceeded Wall Street expectations across revenue and earnings, alongside sharply higher guidance driven by accelerating AI demand.
For the quarter, Dell reported adjusted earnings per share of $4.86 versus analyst estimates of $2.94.
Revenue came in at $43.84 billion, well ahead of expectations of $35.43 billion, and marked an 88% increase year-over-year.
Dell said performance was driven by strong demand across its infrastructure and client businesses, with particular strength in AI-related server deployments.
The company booked $24.4 billion in AI orders during the quarter and recognized $16.1 billion in AI server revenue.
“Our record Q1 performance reflects strong in-quarter demand, as well as our pace of innovation across the full stack of PCs, compute and storage,” said Jeff Clarke, vice chairman and COO of Dell Technologies.
He added that AI server momentum remains robust, with the company increasing its FY27 AI server revenue outlook to $60 billion.
Infrastructure Solutions Group (ISG) revenue rose 181% year over year to a record $29.0 billion, supported by a 757% surge in AI-optimized server revenue to $16.1 billion. Traditional servers and networking climbed 92% to $8.5 billion, while storage revenue increased 8% to $4.3 billion. ISG operating income more than tripled to $3.1 billion.
The Client Solutions Group (CSG) posted revenue of $14.6 billion, up 17% year over year, with commercial client revenue reaching $13.0 billion and consumer revenue at $1.6 billion. CSG operating income rose 79% to $1.2 billion.
Following the results, Dell raised its full-year fiscal 2027 outlook. The company now expects revenue between $165 billion and $169 billion, compared with prior consensus estimates around $142.1 billion. At the midpoint, the revised range implies approximately 47% year-over-year growth.
Adjusted full-year EPS guidance was also increased to $17.90, up from a prior outlook of $12.90.
For the second quarter, Dell expects revenue between $44 billion and $45 billion, with non-GAAP EPS projected at $4.80 at the midpoint.