Dell Technologies Inc. experienced a significant boost in its stock value, with shares rising over 9% in after-hours trading on Thursday, following an outstanding fourth-quarter earnings report that reflected a strong demand for AI-optimized servers.
For the quarter that ended on February 1, Dell reported impressive revenue of $31.8 billion, marking a 32% increase compared to the same period last year. The non-GAAP diluted earnings per share also rose, reaching $3.53, a gain of 32%.
Dell’s Infrastructure Solutions Group, which encompasses the company’s server and networking operations, reported an extraordinary revenue of $18.82 billion, a 66% climb year-over-year. Revenues from server and networking services more than doubled, skyrocketing by 112%, largely fueled by a robust demand for AI servers. The company’s AI server backlog reached an extraordinary $22 billion, highlighting the increasing reliance on AI technologies.
In its fourth quarter, Dell also reported record revenues of $33.4 billion, with a GAAP earnings per share of $3.37, representing a 57% growth compared to last year, and a non-GAAP EPS of $3.89, up 45%. Additionally, Dell’s cash flow from operations hit a record high of $4.7 billion, demonstrating the company’s strong financial health.
Looking at future prospects, Dell has projected full-year FY27 revenue to be between $138 billion and $142 billion, signifying a 23% growth at the midpoint. The company anticipates that the first-quarter GAAP EPS will reach $2.55, an increase of 86% from the previous year, while the non-GAAP EPS is estimated at $2.90, up 87%.
Jeff Clarke, vice chairman and chief operating officer, emphasized the transformative impact of AI on the company, stating, “FY26 was a defining year in our company’s history, with record full-year revenue of $113.5 billion, record EPS, and record cash generation. The AI opportunity is transforming our company. We closed more than $64 billion in AI-optimized server orders, shipped more than $25 billion throughout the year, and are entering FY27 with record backlog of $43 billion — powerful proof that our engineering leadership and differentiated AI solutions are winning.”
The promising earnings report not only showcases Dell’s financial resilience but also highlights the company’s strategic positioning within the emerging AI market, setting a positive trajectory as it moves forward into FY27.