TLDR
- Dell Technologies posted Q4 adjusted EPS of $3.89, exceeding analyst consensus of $3.52, with quarterly revenue hitting $33.4 billion—marking a 39% year-over-year jump.
- AI-optimized server revenue exploded 342% annually to $9.0 billion, while the company holds a massive $43 billion backlog.
- Management’s FY2027 revenue guidance of $138–$142 billion substantially surpasses the Street’s $124.9 billion estimate.
- The stock surged over 13% in after-hours trading, reaching $137.40.
- Dell announced a 20% dividend hike and greenlit an additional $10 billion stock repurchase program.
Dell Technologies posted exceptional fiscal fourth-quarter results that exceeded analyst expectations across the board. The market reacted positively, with shares jumping more than 13% in extended trading hours.
The tech giant’s adjusted EPS of $3.89 handily beat consensus estimates of $3.52. Revenue for the quarter reached $33.4 billion, marking a substantial 39% year-over-year increase and topping projections of $31.41 billion.
The true highlight centered on artificial intelligence server sales. Dell’s Infrastructure Solutions Group recorded $9.0 billion in AI-optimized server revenue—an astonishing 342% increase compared to the same period last year.
You read that number correctly.
Furthermore, Dell revealed an unprecedented $43 billion AI server backlog. The company captured more than $64 billion in AI-optimized server orders during the complete fiscal year while successfully delivering over $25 billion worth of 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 future guidance proved equally impressive. The company projected FY2027 revenue between $138 billion and $142 billion—well above Wall Street’s consensus of $124.9 billion.
Full-year EPS expectations of $12.90 likewise exceeded analyst forecasts of $11.49. First-quarter revenue is anticipated to grow 51% year-over-year.
Dell expects AI server revenue to reach approximately $50 billion during fiscal 2027, representing a 103% increase from FY2026 figures.
On the capital return front, Dell boosted its quarterly dividend by 20% and approved a new $10 billion share buyback authorization.
A Note of Caution
Despite outstanding financial performance, certain analysts voiced concerns. BofA Securities pointed to potential demand elasticity issues, citing “swift and significant price actions” Dell has taken in recent months.
The company implemented server price increases on December 10, driven partly by rising memory chip costs. Additional PC pricing adjustments were introduced on January 6.
Clarke acknowledged these pricing changes but framed them as necessary reactions to climbing input costs rather than strategic demand controls.
In extended trading, DELL shares climbed to $137.40, marking a 13.21% gain after the earnings release. During Friday’s premarket session, the stock held gains above 12%.
The record $43 billion AI server backlog entering fiscal 2027 stands as Dell’s strongest evidence of continuing business momentum.
