Dell Technologies Inc. shares surged nearly 40% in after-hours trading yesterday after the hardware company released its Q1 earnings and an outlook for annual sales that greatly surpassed analysts’ estimates, fueled by demand for servers supporting AI.
Dell’s Guidance Summary included:
• Second-quarter FY27 revenue expected between $44.0 billion and $45.0 billion, up 49% year over year at the midpoint of $44.5 billion
• Second-quarter FY27 GAAP diluted EPS expected to be $4.48 at the midpoint, up 164% year over year, and non-GAAP diluted EPS to be $4.80 at the midpoint, up 107%
• Full-year FY27 revenue expected between $165.0 billion and $169.0 billion, up 47% year over year at the midpoint of $167.0 billion
• Full-year AI-Optimized Servers revenue expected to be roughly $60 billion, up 144% year over year
• Full-year FY27 GAAP diluted EPS expected to be $17.31 at the midpoint, up 99% year over year, and non-GAAP diluted EPS to be $17.90 at the midpoint, up 74%
In the earnings release, Jeff Clarke, COO of Dell Technologies, told investors, “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. We booked $24.4 billion in AI orders and recognized $16.1 billion of AI server revenue. We’re increasing our AI server revenue expectations for FY27 to $60 billion, which only goes to show the AI opportunity shows no signs of slowing.”
“Execution was exceptionally strong across the business – from supply chain to sales to pricing – driving record revenue of $43.8 billion, record EPS, record Q1 cash flow of $4.1 billion and continued strong shareholder returns of $2.1 billion,” said David Kennedy, chief financial officer, Dell Technologies. “We entered FY27 with clear momentum, raising our full-year revenue outlook to $167 billion at the midpoint, up nearly 50% year over year.”
In Q1, the company achieved record revenue of $43.8 billion, up 88% year over year, and recorded a record diluted earnings per share (EPS) of $5.24, an increase of 282% year over year.
By CEO NA Editorial Staff
