Dell surges 11.6% on record Q4, $50B AI outlook
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- Dell Technologies posted record fiscal Q4 results — adjusted EPS of $3.89 on revenue of $33.4 billion — beating analyst expectations of $3.53 and $31.7 billion tracked by FactSet.
- Dell guided to $138 billion–$142 billion in revenue for the new fiscal year, well above the under-$125 billion analysts had modeled, with CFO David Kennedy saying "AI server demand remains exceptional."
- Dell expects $50 billion in AI revenue this fiscal year, double the figure posted in fiscal 2026, and carries $43 billion in backlog that COO Jeff Clarke said will ship at mid-single-digit operating margins.
- Dell raised its quarterly dividend by 20% and added $10 billion to its buyback authorization, extending a commitment to double-digit dividend increases through fiscal 2030.
- Dell's gross margin held at 20.5% in the quarter despite industrywide memory-chip shortages, helped by December price hikes on traditional servers and January price increases on PCs.
- Dell's client-solutions group grew 18% in a market that grew 10%, and its infrastructure-solutions business posted a 14.8% operating margin, a 240-basis-point improvement from fiscal Q3.
Why it matters: Dell's $50 billion AI revenue projection, $43 billion backlog, and 20.5% gross margins achieved during a memory-chip crunch show the company converting AI infrastructure demand into pricing power — the 11.6% after-hours surge signals investors view component shortages as a Dell-tailwind (via raised prices and disciplined share gains) even as those same shortages pressure other consumer-electronics names.
