Dell Technologies’ shares increased in premarket trading on Friday after the company forecast that revenue from its AI server division will double in fiscal 2027, highlighting the growing demand for AI infrastructure.
Investors also welcomed the company’s announcement of a 20% increase in cash dividends along with an extra $10 billion share buyback program.
Dell said it expects AI server revenue to grow by 103% to around $50 billion in fiscal 2027.
In a prepared statement on the company’s latest earnings, Jeff Clarke, Vice Chairman and COO, told investors, “FY26 was a defining year in our company’s history, with record full-year revenue of $113.5 billion, record EPS, and record cash generation. The AI opportunity is transforming our company. We closed more than $64 billion in AI-optimized server orders, shipped more than $25 billion throughout the year, and are entering FY27 with record backlog of $43 billion — powerful proof that our engineering leadership and differentiated AI solutions are winning.”
“We delivered record revenue of $33.4 billion in our fourth quarter, capping a record year for the company,” said David Kennedy, chief financial officer, Dell Technologies. “Our strong execution drove record annual cash flow of more than $11 billion and record capital returned to shareholders of $7.5 billion. We have the portfolio, operating model and growing customer base to exceed our long-term growth targets in FY27, with expected revenue of $140 billion at the midpoint of our range and EPS growth of 25%.”
Following the announcement, Dell shares are trading at their highest level in over two months.
By CEO NA Editorial Staff
