Dell Technologies Earnings Beat Expectations, Shares Surge 39%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 hours ago
0mins
Source: CNBC
- Strong Earnings from Dell: Dell Technologies reported its fastest revenue growth since returning to the public market in 2018, with an impressive 88% annual increase driven by surging AI demand, and now expects $60 billion in AI revenue for the year, up from a previous forecast of $50 billion, highlighting its robust position in the rapidly evolving AI sector.
- Positive Market Reaction: Following the earnings report, Dell's shares soared 39% in after-hours trading, reflecting strong investor confidence in the company's growth potential and underscoring the market's keen interest in AI-related technologies.
- Defense Contract Boost: This week, Dell secured a $9.7 billion deal with the Pentagon, which not only provides substantial revenue but also strengthens its market position in the government and defense sectors, indicating potential for sustained growth in the future.
- Economic Environment Impact: Despite facing inflationary pressures and a drop in consumer savings rates to the lowest level since 2022, Dell's strong performance suggests resilience in the tech sector, potentially attracting more investor interest in opportunities within this field.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy DELL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on DELL
Wall Street analysts forecast DELL stock price to fall
15 Analyst Rating
11 Buy
3 Hold
1 Sell
Moderate Buy
Current: 317.050
Low
113.00
Averages
164.85
High
180.00
Current: 317.050
Low
113.00
Averages
164.85
High
180.00
About DELL
Dell Technologies Inc. is engaged in designing, developing, manufacturing, marketing, selling, and supporting a wide range of comprehensive and integrated solutions, products, and services. The Company operates through two segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). Its ISG segment enables the Company’s customer’s digital transformation with solutions that address artificial intelligence (AI), machine learning, data analytics, and multi cloud environments. Its comprehensive storage portfolio includes modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage. Its CSG segment offers branded personal computers (PCs) including notebooks, desktops, and workstations and branded peripherals that include displays, docking stations, keyboards, mice, and webcam and audio devices, as well as third-party software and peripherals.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Micron Stock Rises on Dell's Earnings Surge and Price Target Increase
- Dell's Earnings Boost: Dell reported fiscal Q1 2027 results with a non-GAAP EPS of $4.86, significantly exceeding the $2.88 forecast, and an 88% year-over-year sales increase to $43.8 billion, enhancing market confidence in Micron's prospects.
- AI Orders Driving Growth: With 56% of Dell's business coming from AI orders, and AI servers making up nearly two-thirds of total AI orders, the ongoing AI market expansion is expected to directly increase demand for Micron's memory products, bolstering its sales outlook.
- Analyst Optimism: Susquehanna analyst Mehdi Hosseini predicts tight memory supply will persist through 2027, raising Micron's stock price target to $1,750 per share, reflecting a positive outlook on Micron's future performance.
- Positive Market Reaction: Micron's stock rose 4.5% today to $36.61, indicating investor confidence in the company's growth potential, particularly in the context of rapid advancements in AI technology.
See More
US Stock Indices Reach All-Time Highs Amid Positive Economic Signals
- Market Surge: The S&P 500 rose by 0.21%, the Dow Jones Industrial Average increased by 0.65%, and the Nasdaq 100 climbed by 0.25%, with all three indices reaching new all-time highs, reflecting strong market confidence in economic recovery.
- Tech Stocks Rally: Dell Technologies surged over 31% after reporting Q1 total revenue of $43.84 billion, significantly exceeding the consensus estimate of $35.52 billion, and raised its 2027 revenue forecast to $165 billion to $169 billion, indicating robust demand for AI infrastructure.
- Positive Economic Indicators: The May MNI Chicago PMI jumped 13.5 to 62.7, well above the expected 50.3, marking the strongest expansion pace in 4.25 years, which supports the bullish sentiment in the stock market.
- Oil Price Decline: Crude oil prices fell more than 1% to a five-week low as the US and Iran tentatively agreed to extend a ceasefire, easing inflation concerns and fostering optimism about the economic outlook.
See More
Energy Stocks Decline as Nextpower Acquires Battery Firm
- Energy Sector Decline: Energy stocks fell for the fourth consecutive day after President Trump indicated a potential deal to end the U.S.-Iran conflict, with OneOK leading the S&P 500 energy sector down over 3%, reflecting market concerns about the industry's outlook.
- Nextpower Acquisition: Nextpower's stock surged 13% following its announcement of acquiring battery storage company Prevalon Energy for approximately $365 million, while also raising its full-year revenue guidance, indicating its strategic expansion in the renewable energy sector.
- Dell Technologies Surge: Dell Technologies' shares jumped 29% after raising its full-year guidance, projecting adjusted earnings of $17.90 per share and revenue between $165 billion and $169 billion, significantly exceeding analyst expectations, showcasing strong market demand recovery.
- American Eagle's Poor Performance: American Eagle Outfitters' shares dropped 13% as comparable sales at its American Eagle banner fell 2% in Q1, with second-quarter guidance disappointing analysts, highlighting the sales pressure and intensified competition it faces.
See More
Costco Membership Growth Weakens, Stock Drops
- Costco Stock Decline: Costco's shares fell 4.5% on Friday due to weaker-than-expected membership growth in its quarterly report, leading to investor concerns about the company's growth trajectory, with Jim noting management's failure to reassure the market.
- Dell Stock Surge: Dell Technologies' stock surged 30% on Friday, marking its best single-day performance ever, driven by strong demand for AI servers and data center infrastructure, which also bolstered Jim's bullish outlook on Nvidia.
- Cybersecurity Earnings Outlook: CrowdStrike and Palo Alto Networks are set to report earnings next week, with Jim highlighting that both stocks have rallied significantly during the quarter, although they face challenges heading into earnings, he remains optimistic about their long-term prospects.
- Rapid Fire Recap: At the end of the video, Jim covered stocks like Applied Materials, Honeywell, and FedEx, emphasizing their market performance and showcasing his focus on a diversified investment portfolio.
See More
Dell Technologies Reports Record Q1 Results Driven by AI Server Demand
- Significant Revenue Growth: Dell Technologies reported a record revenue of $43.84 billion for Q1, exceeding analyst expectations of $35.43 billion and marking an 88% year-over-year increase, highlighting the company's strong performance in the AI infrastructure sector since its public market return in 2018.
- Surge in AI Server Revenue: The company's AI server revenue skyrocketed by 757% year-over-year to $16.1 billion, surpassing sales from its PC unit, indicating that the rapid growth in AI demand is reshaping Dell's revenue structure and further solidifying its market position.
- Analysts' Optimistic Outlook: Several Wall Street analysts raised Dell's price targets, with Bank of America increasing its target to $500, anticipating that demand for AI servers and intelligent security systems will drive future growth, reflecting confidence in Dell's execution capabilities.
- Robust Market Demand: Dell forecasts that AI-optimized server revenue could reach $60 billion by January 2027, up from its previous estimate of $50 billion, demonstrating the company's ongoing investment in AI and the strong market demand, signaling significant growth potential ahead.
See More
Dell Shares Surge 33% After Blowout Earnings and AI Server Demand Outlook
- Significant Revenue Growth: Dell reported fiscal first-quarter revenue of $43.8 billion, an impressive 88% year-over-year increase that far exceeded Wall Street expectations, showcasing the company's robust performance amid surging AI server demand and solidifying its market position.
- Surge in AI Server Revenue: AI server revenue skyrocketed to $16.1 billion, up 757%, reflecting not only the strong market demand for AI technologies but also establishing a solid foundation for Dell's future revenue growth in this booming sector.
- Stock Hits Record High: Dell's shares surged over 33% to a record high of $429.15, breaking through previous resistance levels, indicating strong investor confidence in the company's growth potential while trading significantly above both its 50-day and 200-day moving averages.
- Optimistic Future Outlook: The company expects Q2 revenue to be between $44 billion and $45 billion, with an adjusted earnings forecast of $4.80 per share, both significantly above analyst expectations, highlighting Dell's ongoing growth potential in the AI market.
See More
Micron Stock Rises on Dell's Earnings Surge and Price Target Increase
- Dell's Earnings Boost: Dell reported fiscal Q1 2027 results with a non-GAAP EPS of $4.86, significantly exceeding the $2.88 forecast, and an 88% year-over-year sales increase to $43.8 billion, enhancing market confidence in Micron's prospects.
- AI Orders Driving Growth: With 56% of Dell's business coming from AI orders, and AI servers making up nearly two-thirds of total AI orders, the ongoing AI market expansion is expected to directly increase demand for Micron's memory products, bolstering its sales outlook.
- Analyst Optimism: Susquehanna analyst Mehdi Hosseini predicts tight memory supply will persist through 2027, raising Micron's stock price target to $1,750 per share, reflecting a positive outlook on Micron's future performance.
- Positive Market Reaction: Micron's stock rose 4.5% today to $36.61, indicating investor confidence in the company's growth potential, particularly in the context of rapid advancements in AI technology.
See More
US Stock Indices Reach All-Time Highs Amid Positive Economic Signals
- Market Surge: The S&P 500 rose by 0.21%, the Dow Jones Industrial Average increased by 0.65%, and the Nasdaq 100 climbed by 0.25%, with all three indices reaching new all-time highs, reflecting strong market confidence in economic recovery.
- Tech Stocks Rally: Dell Technologies surged over 31% after reporting Q1 total revenue of $43.84 billion, significantly exceeding the consensus estimate of $35.52 billion, and raised its 2027 revenue forecast to $165 billion to $169 billion, indicating robust demand for AI infrastructure.
- Positive Economic Indicators: The May MNI Chicago PMI jumped 13.5 to 62.7, well above the expected 50.3, marking the strongest expansion pace in 4.25 years, which supports the bullish sentiment in the stock market.
- Oil Price Decline: Crude oil prices fell more than 1% to a five-week low as the US and Iran tentatively agreed to extend a ceasefire, easing inflation concerns and fostering optimism about the economic outlook.
See More
Energy Stocks Decline as Nextpower Acquires Battery Firm
- Energy Sector Decline: Energy stocks fell for the fourth consecutive day after President Trump indicated a potential deal to end the U.S.-Iran conflict, with OneOK leading the S&P 500 energy sector down over 3%, reflecting market concerns about the industry's outlook.
- Nextpower Acquisition: Nextpower's stock surged 13% following its announcement of acquiring battery storage company Prevalon Energy for approximately $365 million, while also raising its full-year revenue guidance, indicating its strategic expansion in the renewable energy sector.
- Dell Technologies Surge: Dell Technologies' shares jumped 29% after raising its full-year guidance, projecting adjusted earnings of $17.90 per share and revenue between $165 billion and $169 billion, significantly exceeding analyst expectations, showcasing strong market demand recovery.
- American Eagle's Poor Performance: American Eagle Outfitters' shares dropped 13% as comparable sales at its American Eagle banner fell 2% in Q1, with second-quarter guidance disappointing analysts, highlighting the sales pressure and intensified competition it faces.
See More
Costco Membership Growth Weakens, Stock Drops
- Costco Stock Decline: Costco's shares fell 4.5% on Friday due to weaker-than-expected membership growth in its quarterly report, leading to investor concerns about the company's growth trajectory, with Jim noting management's failure to reassure the market.
- Dell Stock Surge: Dell Technologies' stock surged 30% on Friday, marking its best single-day performance ever, driven by strong demand for AI servers and data center infrastructure, which also bolstered Jim's bullish outlook on Nvidia.
- Cybersecurity Earnings Outlook: CrowdStrike and Palo Alto Networks are set to report earnings next week, with Jim highlighting that both stocks have rallied significantly during the quarter, although they face challenges heading into earnings, he remains optimistic about their long-term prospects.
- Rapid Fire Recap: At the end of the video, Jim covered stocks like Applied Materials, Honeywell, and FedEx, emphasizing their market performance and showcasing his focus on a diversified investment portfolio.
See More
Dell Technologies Reports Record Q1 Results Driven by AI Server Demand
- Significant Revenue Growth: Dell Technologies reported a record revenue of $43.84 billion for Q1, exceeding analyst expectations of $35.43 billion and marking an 88% year-over-year increase, highlighting the company's strong performance in the AI infrastructure sector since its public market return in 2018.
- Surge in AI Server Revenue: The company's AI server revenue skyrocketed by 757% year-over-year to $16.1 billion, surpassing sales from its PC unit, indicating that the rapid growth in AI demand is reshaping Dell's revenue structure and further solidifying its market position.
- Analysts' Optimistic Outlook: Several Wall Street analysts raised Dell's price targets, with Bank of America increasing its target to $500, anticipating that demand for AI servers and intelligent security systems will drive future growth, reflecting confidence in Dell's execution capabilities.
- Robust Market Demand: Dell forecasts that AI-optimized server revenue could reach $60 billion by January 2027, up from its previous estimate of $50 billion, demonstrating the company's ongoing investment in AI and the strong market demand, signaling significant growth potential ahead.
See More
Dell Shares Surge 33% After Blowout Earnings and AI Server Demand Outlook
- Significant Revenue Growth: Dell reported fiscal first-quarter revenue of $43.8 billion, an impressive 88% year-over-year increase that far exceeded Wall Street expectations, showcasing the company's robust performance amid surging AI server demand and solidifying its market position.
- Surge in AI Server Revenue: AI server revenue skyrocketed to $16.1 billion, up 757%, reflecting not only the strong market demand for AI technologies but also establishing a solid foundation for Dell's future revenue growth in this booming sector.
- Stock Hits Record High: Dell's shares surged over 33% to a record high of $429.15, breaking through previous resistance levels, indicating strong investor confidence in the company's growth potential while trading significantly above both its 50-day and 200-day moving averages.
- Optimistic Future Outlook: The company expects Q2 revenue to be between $44 billion and $45 billion, with an adjusted earnings forecast of $4.80 per share, both significantly above analyst expectations, highlighting Dell's ongoing growth potential in the AI market.
See More
