Dell is soaring in postmarket trading after delivering blockbuster quarterly results and significantly raising its full-year guidance.
For its fiscal 2027 Q1, the PC and server company reported:
Net revenue: $43.8 billion (estimate: $35.5 billion, guidance for $35.2 billion +/- $500 million)
Adjusted earnings per share: $4.86 (estimate: $2.99, guidance for $2.90)
Management now sees full year sales of about $167 billion (+/- $2 billion), up significantly from its prior $140 billion outlook. That’s well about the $142 billion anticipated by analysts.
The bottom line boost is even bigger, with the midpoint of its adjusted earnings per share at $17.90 from $12.90 previously (estimate: $13.14 billion).
Dell’s undergone a major transformation under the hood thanks to the AI boom. AI server sales, the biggest unit within its Infrastructure Solutions Group, didn’t exist until late 2023. That segment now contributes more to Dell’s top line than the entire Client Solutions Group, its mature PC-focused business. The company expects to book roughly $60 billion in AI server sales this year, up from prior guidance of about $50 billion.
The company got a big win ahead of this earnings report, receiving a $9.7 billion contract from the Pentagon to manage Microsoft software licenses across different swathes of the military.