tech
Dell shares jump 39% after server maker reports fastest sales growth since return to public market in 2018
Dell has gone from being a sleepy legacy tech company to a high-growth AI story, assembling servers packed with graphics processing units.
TL;DR
- Dell reported its fastest revenue growth since going public in 2018, with revenue soaring nearly 88% year over year.
- AI server revenue increased 757% year-over-year to $16.1 billion, and the full-year AI revenue forecast was raised to $60 billion.
- Dell now expects fiscal 2027 adjusted earnings per share of $17.90 and revenue between $165 billion and $169 billion.
- Revenue from the Infrastructure Solutions Group rose 181% to $29 billion, driven by AI servers, traditional servers, and networking gear.
- The Client Solutions Group saw a 17% increase in revenue to $14.6 billion.
- Dell anticipates supply constraints in the second half of fiscal 2027 for components like memory, processors, and hard drives.
- Donald Trump, a shareholder since the first quarter, publicly encouraged buying Dell stock.
- The Pentagon awarded Dell a $9.7 billion contract for Microsoft 365 services.
- Net income more than tripled to $3.44 billion in the latest quarter.
- Dell raised prices to reflect higher input costs due to the global memory shortage tied to the AI boom.