Dell shocking profits earning quarter - AI demand is not slowing down
Edit : Dell stocks are currently up +40% after hours after posting its fastest sales growth since return to public markets in 2018
Computer hardware and IT solutions company Dell (NYSE:DELL) reported revenue ahead of Wall Street’s expectations in Q1 CY2026, with sales up 87.5% year on year to $43.84 billion. On top of that, next quarter’s revenue guidance ($44.5 billion at the midpoint) was surprisingly good and 25.5% above what analysts were expecting. Its non-GAAP profit of $4.80 per share was 62% above analysts’ consensus estimates.
* **Revenue:** $43.84 billion vs analyst estimates of $36.1 billion (87.5% year-on-year growth, 21.5% beat)
* **Adjusted EPS:** $4.80 vs analyst estimates of $2.96 (62% beat)
* The company **lifted its revenue guidance for the full year** to $167 billion at the midpoint from $140 billion, a 19.3% increase
* Management **raised its full-year Adjusted EPS guidance** to $17.90 at the midpoint, a 55.4% increase
Record backlog of 60 Billion and continue to grow aggressively
Revenue soared nearly 88% from a year earlier in the quarter, which ended on May 1, according to a [statement](https://www.businesswire.com/news/home/20260528449392/en/Dell-Technologies-Delivers-First-Quarter-Fiscal-2027-Financial-Results). Since its [IPO](https://www.reuters.com/article/technology/dell-returns-to-market-with-nyse-listing-idUSKCN1OR14C/) in 2018, which came five years after the server maker was [taken private](https://www.cnbc.com/2013/02/05/dell-reaches-deal-to-be-taken-private-by-founder-silver-lake.html), year-over-year growth has never exceeded 39%, a mark that was hit in the January period.
The expansion is being driven by artificial intelligence, with Dell assembling servers containing graphics processing units from the likes of [Nvidia](https://www.cnbc.com/quotes/NVDA/).
Dell said it AI server revenue increased 757% from a year earlier to $16.1 billion. For the full year, Dell now expects AI revenue of $60 billion, up from a projection of $50 billion in February. That would reflect 144% growth.
