TLDR
- Dell reported Q4 adjusted earnings per share of $3.89, surpassing analyst estimates of $3.52, while revenue reached $33.4 billion — a 39% year-over-year increase.
- Revenue from AI-optimized servers skyrocketed 342% to reach $9.0 billion, accompanied by an unprecedented $43 billion backlog.
- The company’s FY2027 revenue forecast of $138–$142 billion significantly exceeds Wall Street’s $124.9 billion consensus projection.
- Shares climbed more than 13% in extended trading, hitting $137.40.
- The company announced a 20% dividend increase and authorized an additional $10 billion for share buybacks.
Dell Technologies delivered an impressive fiscal fourth-quarter performance, surpassing Wall Street projections across key metrics. Investors responded enthusiastically, pushing shares up over 13% during after-hours trading.
The company’s adjusted earnings per share of $3.89 comfortably exceeded the Street’s $3.52 forecast. Quarterly revenue totaled $33.4 billion, representing a robust 39% increase compared to the prior-year period and beating expectations of $31.41 billion.
The standout performance came from AI server sales. Dell’s Infrastructure Solutions Group generated $9.0 billion in AI-optimized server revenue — representing an explosive 342% year-over-year surge.
Yes, you read that correctly.
Additionally, the company disclosed a record-breaking $43 billion AI server backlog. Dell secured over $64 billion in AI-optimized server orders throughout the complete fiscal year while delivering more than $25 billion in shipments.
“The AI opportunity is transforming our company,” said Jeff Clarke, vice chairman and COO. “We are entering FY27 with record backlog of $43 billion — powerful proof that our engineering leadership and differentiated AI solutions are winning.”
FY2027 Outlook
Dell’s forward-looking guidance demonstrated similar strength. Management forecasted FY2027 revenue in the range of $138 billion to $142 billion — substantially higher than the Street’s $124.9 billion estimate.
Full-year EPS guidance of $12.90 also topped analyst projections of $11.49. The company anticipates first-quarter revenue will expand 51% year-over-year.
Management projects AI server revenue will climb to approximately $50 billion during the current fiscal year, representing a 103% jump from FY2026 levels.
Regarding capital allocation, Dell increased its quarterly cash dividend by 20% and authorized an expanded $10 billion share repurchase authorization.
A Note of Caution
Despite the positive results, some analysts expressed reservations. BofA Securities highlighted concerns regarding demand elasticity, noting “swift and significant price actions” implemented by Dell in recent months.
The company raised server pricing on December 10, influenced partially by escalating memory chip expenses. PC pricing adjustments followed on January 6.
Clarke acknowledged these price modifications but characterized them as necessary responses to rising input costs rather than strategic demand management.
Extended trading activity lifted DELL shares to $137.40, representing a 13.21% increase following the earnings announcement. By Friday’s premarket session, the stock maintained gains exceeding 12%.
The unprecedented $43 billion AI server backlog entering FY2027 represents the company’s most concrete indicator of sustained momentum.
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