Dell Technologies Inc (NYSE:DELL) stock rallies 19.60% (As on February 27, 11:14:59 AM UTC-4, Source: Google Finance) after the company beat Wall Street’s expectations as it posted its latest financial results, benefiting from surging artificial intelligence demand. It posted net income of $2.26 billion in the quarter, rising from a $1.53 billion profit in the year-ago period. During the quarter, Dell banked more than $8.95 billion worth of sales of AI-optimized servers, up a stunning 342% from the year before. Its total servers and networking revenue came in at $14.8 billion, well ahead of the Street’s consensus estimate of $13.9 billion. Overall, Dell’s infrastructure solutions group generated $19.6 billion in sales, while its client solutions group, which is focused on PCs, added another $13.49 billion. Fourth-quarter Commercial Client revenue was $11.6 billion, up 16% year over year. The company closed more than $64 billion in AI-optimized server orders, shipped more than $25 billion throughout the year, and are entering fiscal 2027 with a record backlog of $43 billion. The company generated record cash flow from operations of $4.7 billion
DELL in the fourth quarter of FY26 has reported the adjusted earnings per share of $3.89, beating the analysts’ estimates for the adjusted earnings per share of $3.53. The company had reported the adjusted revenue growth of 39 percent to $33.38 billion in the fourth quarter of FY26, beating the analysts’ estimates for revenue of $31.67 billion. Dell’s gross margins were 20.5% in the quarter, higher than the 20.3% that analysts had expected.
Additionally, the company announced a cash dividend increase of 20% and $10 billion increase in share repurchase authorization. Dell Technologies returned $2.2 billion to shareholders in the fourth quarter through share repurchases and dividends.
For the first quarter of FY27, it’s looking for earnings of about $2.90 per share at the midpoint of its guidance range, with revenue of between $34.7 billion and $35.7 billion. That’s well ahead of the Street’s consensus, which calls for earnings of just $2.34 per share on sales of about $29 billion.
For the full year 2027, Dell is aiming for a $12.90 per share profit on sales of between $138 billion and $142 billion. Wall Street is looking for just $11.45 per share on $124.7 billion in revenue. Full-year AI-Optimized Servers revenue expected to be roughly $50 billion, up 103% year over year.