TLDR
- Dell delivered Q4 adjusted earnings of $3.89 per share, surpassing Wall Street’s $3.52 projection, while revenue reached $33.4 billion — a 39% annual increase.
- Revenue from AI-optimized servers skyrocketed 342% to $9.0 billion, supported by an unprecedented $43 billion order backlog.
- The company forecasts FY2027 revenue between $138–$142 billion, significantly exceeding analyst consensus of $124.9 billion.
- Shares climbed more than 13% during after-hours trading, hitting $137.40.
- The company announced a 20% dividend increase and added $10 billion to its stock buyback authorization.
Dell Technologies delivered a blowout fiscal fourth-quarter performance that significantly exceeded Wall Street projections across key metrics. The stellar report triggered a sharp rally, with shares climbing over 13% in extended trading.
The company reported adjusted earnings of $3.89 per share, comfortably beating the Street’s $3.52 estimate. Quarterly revenue totaled $33.4 billion, representing a robust 39% year-over-year expansion and surpassing the $31.41 billion analyst forecast.
The standout performer was artificial intelligence infrastructure. Dell’s Infrastructure Solutions Group generated $9.0 billion in AI-optimized server revenue — an eye-popping 342% increase compared to the prior year.
You read that correctly.
Additionally, the company revealed a record-breaking AI server order backlog totaling $43 billion. 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 fundamentally reshaping our business,” stated Jeff Clarke, vice chairman and COO. “We’re beginning FY27 with a historic backlog of $43 billion — undeniable evidence that our engineering excellence and unique AI solutions are capturing the market.”
FY2027 Outlook
Dell’s forward guidance proved equally impressive. Management anticipates FY2027 revenue ranging from $138 billion to $142 billion — substantially higher than the Street’s $124.9 billion consensus estimate.
The company projects annual earnings per share of $12.90, compared to the analyst consensus of $11.49. First-quarter revenue is anticipated to surge 51% year-over-year.
Management expects AI server revenue to reach roughly $50 billion during the current fiscal year, representing a 103% jump from FY2026.
On the shareholder return front, Dell boosted its quarterly cash dividend by 20% and authorized an additional $10 billion for share repurchases.
A Note of Caution
Despite the optimism, some skepticism remains. BofA Securities analysts highlighted concerns regarding demand elasticity, noting “rapid and substantial pricing actions” implemented by Dell recently.
The company increased server prices on December 10, attributed partially to escalating memory chip expenses. PC pricing adjustments followed on January 6.
Clarke confirmed the pricing moves but characterized them as responses to rising input costs rather than strategic demand management.
Extended trading pushed DELL shares to $137.40, representing a 13.21% gain following the earnings announcement. By Friday’s premarket session, the stock maintained gains exceeding 12%.
The historic $43 billion AI server backlog entering FY2027 represents the company’s most concrete indicator of sustained momentum.
