Dell posted its fastest revenue growth since going public in 2018, with quarterly revenue rising nearly 88% year over year to roughly $43.8 billion in its fiscal first quarter ending May 1 [1, 2]. The surge was largely driven by AI server revenue, which soared 757% year over year to $16.1 billion, reflecting strong demand for servers equipped with Nvidia and other GPUs [1, 2, 3]. Adjusted earnings per share reached $4.86, surpassing Wall Street expectations of $2.94 [1, 2].
Dell's net income more than tripled to $3.44 billion from $965 million a year earlier, highlighting the leap in profitability [1]. The company faces higher memory prices amid a global shortage, contributing to the revenue boost, while demand for traditional CPUs has also risen due to AI buildout, fueling the server business further [1, 3].
Shares responded sharply to the earnings, rising as much as 19% in after-hours trading Thursday following the report on May 28 [1]. On Friday, Dell shares surged between 30% and 33% during regular trading, marking one of the best single-day performances for the stock [4, 2, 3]. Bloomberg analyst Woo Jin Ho commented, "In terms of scale I would put my money on Dell" [4]. Morgan Stanley analysts said, "We got this one wrong, and our model/PT are under review. This was - across the board - one of the most impressive quarters we've seen in our time covering Hardware" [2]. Wedbush's Dan Ives noted, "Dell’s results — AI-server revenue saw a nearly ninefold jump from a year earlier — show that it’s capitalizing on a new refresh opportunity on the horizon" [3].
Looking ahead, Dell projects adjusted earnings per share of $4.80 and revenue between $44 billion and $45 billion for its fiscal second quarter, exceeding analyst forecasts [1]. For fiscal year 2027, the company expects adjusted earnings per share of $17.90 and revenue ranging from $165 billion to $169 billion [1].
