# Dell Posts Blowout Quarter, AI Server Revenue Soars > Source: > Published: 2026-05-29 19:22:51.395383+00:00 # Dell Posts Blowout Quarter, AI Server Revenue Soars Dell Technologies reported a blowout quarter driven by AI infrastructure demand, sending its shares sharply higher. According to CNBC, quarterly revenue rose nearly **88% year over year**, with **AI server revenue up 757%** from a year earlier to **$16.1 billion**, and adjusted EPS of **$4.86** versus expectations of **$2.94**. CNBC also reports that FactSet-driven Wall Street estimates for fiscal 2027 EPS were raised to **$16.85** from **$13.12**, and fiscal 2028 to **$20.21** from **$15.18**, while the stock vaulted roughly **32%** on Friday, per CNBC. Market strategists quoted by CNBC, including Piper Sandler, framed the move as momentum-led; Morgan Stanley called its prior models wrong in light of the results. ### What happened Dell Technologies reported a blowout quarter after the bell on Thursday, with media coverage citing a near **88%** year-over-year increase in quarterly revenue and **AI server revenue rising 757% to $16.1 billion**, according to CNBC. CNBC also reports adjusted earnings per share of **$4.86**, versus consensus estimates of **$2.94**. Following the print, CNBC reports shares jumped roughly **32%** on Friday, and FactSet-based estimates cited by CNBC show fiscal 2027 EPS raised to **$16.85** from **$13.12** and fiscal 2028 EPS to **$20.21** from **$15.18**. CNBC and Barron's note broad market reactions, and Benzinga and other outlets report spillover strength in peers such as Hewlett Packard Enterprise. ### Technical details Reporting by CNBC attributes the AI-server revenue surge in part to demand for racks populated with GPUs from suppliers like **Nvidia**, as well as strong execution across server and services lines. CNBC highlights that the company beat revenue and EPS expectations across the board, and that the AI server line accounted for a large share of the quarter's outperformance. Barron's and TipRanks coverage emphasize accelerating revenue growth metrics and the share-price run earlier in 2026. ### Industry context Industry observers note that a single large vendor reporting materially stronger-than-expected AI-infrastructure sales often forces rapid model revisions across broker desks; CNBC quotes Morgan Stanley saying analysts were "eating our humble pie" and revising models. Public coverage frames the report as evidence that enterprise spending on AI compute remains a primary market driver for hardware vendors, and that outsized server order books can materially change near-term revenue trajectories for incumbents. ### Observed patterns in similar transitions Companies supplying AI infrastructure have historically seen compressed forward P/E ratios only after earnings upgrades follow revenue surprises. CNBC reports that despite the stock surge, FY27 P/E on revised estimates sits near **24.3** and FY28 near **20.3**, figures highlighted to argue the move reflected earnings revisions rather than pure multiple expansion. Coverage of Nvidia's 2023 run is used as a historical analog in several outlets to contextualize investor behavior. ### What to watch Market participants will watch subsequent quarterly disclosures from peers and component suppliers for confirmation of sustained demand; Benzinga and Yahoo Finance note immediate share gains at HPE. Observers should also track whether supply chain signals, GPU availability, and backlog metrics corroborate the revenue run rate reported in this quarter. Finally, analyst revisions to capital-expenditure and server-deployment forecasts across cloud and enterprise customers will determine how persistent the trend is. ### Editorial analysis For practitioners: surging, reported demand for AI servers translates directly into longer lead times for procurement, increased importance of benchmarking system-level performance, and greater focus on power, cooling, and orchestration integration. Industry teams managing capacity, model training schedules, or cost forecasts will likely treat vendor results and backlog disclosures as higher-priority inputs into near-term infrastructure planning. ## Scoring Rationale The results materially update the market view on near-term AI infrastructure demand and force rapid analyst-model revisions, which directly affect procurement and capacity planning for AI teams. The story is notable for practitioners but not a new technology paradigm. Practice interview problems based on real data 1,500+ SQL & Python problems across 15 industry datasets — the exact type of data you work with. [Try 250 free problems](/problems)