Dell Technologies Inc.'s stock soared 38.94% in pre-market trading on Friday, extending massive gains from the previous after-hours session. The sharp move followed the company's release of fiscal first-quarter 2027 results that dramatically exceeded Wall Street expectations.
The technology hardware maker reported revenue of $43.84 billion, an 88% year-over-year increase that handily beat estimates. Adjusted earnings per share came in at $4.86, crushing the consensus forecast. A key driver was explosive growth in AI-optimized server revenue, which skyrocketed 757% to $16.1 billion, underscoring booming demand for infrastructure to power artificial intelligence 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. Additionally, several Wall Street analysts raised their price targets on Dell shares following the report, contributing to the bullish sentiment.
