Dell stock surges on strong quarter, lifts revenue outlook

Dell Technologies shares rose nearly 40% in premarket trading after the company raised its full-year revenue guidance to $165 billion–$169 billion and boosted its fiscal‑2027 AI server revenue forecast to about $60 billion, following stronger-than-expected quarterly results. The rally added substantial market value to a stock that has roughly doubled this year.

Dell reported first-quarter revenue of $43.8 billion, an 88% increase from a year earlier. Adjusted earnings were $4.86 per share, ahead of analysts’ estimates near $2.99. The company closed the quarter with a backlog of $51.3 billion in AI server orders.

Executives attributed results to high demand for systems powered by Nvidia processors, increased data-center spending by major cloud providers, and enterprise upgrades to support more demanding AI workloads. Chief Operating Officer Jeff Clarke told investors the company saw stronger demand than anticipated across business lines and geographies as customers moved to secure supply for AI deployments. He added the quarter produced record cash generation and continued capital returns to shareholders.

Dell highlighted customer efforts to consolidate computing space, cooling and power to improve efficiency. The company said its servers can deliver a 13-to-1 consolidation ratio that helps clients reduce operational complexity while increasing AI capacity.

Chief Financial Officer David Kennedy said the market is shifting from training AI models to broader deployment and use in enterprises, which could expand Dell’s long-term revenue opportunities beyond AI servers. Kennedy also noted efforts to protect margins through tighter cost controls and improved supply-chain execution amid concerns about rising memory prices.

The company’s results prompted several brokerages to raise price targets and ratings. Market data show a median analyst price target of $236.50, with 19 of 28 analysts rating the stock “Buy” or higher. Morgan Stanley called the quarter one of the most impressive it has seen in the hardware sector.

Shares of related infrastructure companies also rose after Dell’s release: Super Micro Computer climbed more than 10% and Hewlett Packard Enterprise gained over 23%.