Dell Posts Record Revenue, Targets $50B AI Sales
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- Dell Technologies shares jumped 22% on Feb 27 after the company posted strong fiscal Q4 earnings and upbeat Q1 guidance.
- Dell reported adjusted earnings of $3.89 per share for the quarter ended Jan 30, beating Wall Street’s $3.52 estimate, and revenue of $33.38 billion topped the $31.41 billion forecast.
- Dell posted record full‑year revenue of $113.5 billion (up 19% YoY) and diluted EPS of $8.68 (up 36% YoY).
- Dell projects fiscal 2027 revenue of $138‑$142 billion (midpoint $140 billion), implying about 23% YoY growth, and EPS of $11.52 at the midpoint, up 33% YoY.
- Dell expects AI‑server revenue to reach $50 billion in fiscal 2027, more than double the prior year and accounting for roughly 21.7% of total sales last year.
- Dell’s Infrastructure Solutions Group generated $60.8 billion of revenue last year, up 40%, while the Client Solutions Group contributed $51 billion, growing about 5%.
- Nvidia is a key partner, with Dell’s AI‑optimized systems built on Nvidia GPUs, and Nvidia CEO Jensen Huang praised Dell’s enterprise scale capabilities.
Why it matters: Dell’s $50 billion AI‑server revenue goal and record earnings boosted cash generation, and its shares jumped 22% after the report, a gain that outpaced the S&P 500’s 16.39% rally last year, underscoring the market’s appetite for AI‑focused hardware and signals strong demand among enterprise customers.
