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Key Takeaways
- Dell shares surged Friday after the company beat quarterly earnings and revenue estimates.
- The company reported $64 billion in AI-optimized server orders and a record $43 billion backlog.
- Dell announced a $10 billion buyback plan and a 20% dividend increase.
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Dell Technologies (DELL) is taking advantage of its “AI opportunity.”
Shares soared 20% in morning trading Friday, a day after the computer and server maker easily topped analysts’ estimates for its fiscal 2026 fourth quarter.
The Round Rock, Texas-based firm reported adjusted earnings of $3.89 per share on revenue that soared 39% year-over-year to $33.38 billion. Analysts surveyed by Visible Alpha had expected $3.53 and $31.72 billion, respectively.
Why This Matters
Dell’s results highlight the acceleration of corporate spending on AI infrastructure and the translation into real hardware demand. The company’s fiscal 2027 outlook came in well above Wall Street expectations, another signal that AI is becoming a durable growth driver.
Dell’s fiscal 2027 projections for revenue, AI-optimized servers revenue, and adjusted EPS were well ahead of consensus expectations.
“The AI opportunity is transforming our company,” chief operating officer and vice chairman Jeff Clarke said. “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.”
Along with its results, Dell announced a $10 billion increase to its buyback plan and a 20% dividend increase.
With today’s gains, Dell shares moved into positive territory for 2026.
