Dell Technologies Inc. (DELL) saw its stock price surge 39.01% in post-market trading on Thursday, following the release of its fiscal first-quarter 2027 results that significantly exceeded analyst expectations and showcased explosive growth in its artificial intelligence business.
The company reported revenue of $43.84 billion, a remarkable 88% increase year-over-year and well above the consensus estimate of $35.42 billion. Adjusted earnings per share came in at $4.86, crushing the $2.94 forecast. A key driver was revenue from AI-optimized servers, which skyrocketed 757% to $16.1 billion, underscoring booming demand for infrastructure to power generative AI applications.
Fueling further investor optimism, Dell dramatically raised its full-year outlook. The company now expects AI server revenue of roughly $60 billion for fiscal 2027, up from a previous forecast of $50 billion, and raised its total revenue guidance to a range of $165 billion to $169 billion. The robust performance and upgraded guidance reflect Dell's position as a primary beneficiary of the massive AI infrastructure buildout by tech giants and enterprises.
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