Dell shares jump 39% after server maker reports fastest sales growth since return to public market in 2018 Dell Technologies experienced its fastest revenue growth since its 2018 return to the public market, significantly exceeding analyst expectations due to a surge in AI server sales. The company’s AI server revenue increased by 757% year-over-year, and its full-year AI revenue forecast was raised substantially. Despite anticipating supply constraints in the second half of fiscal 2027, Dell’s outlook for earnings and revenue has been significantly increased for fiscal year 2027.

• Dell reported its fastest revenue growth since going public in 2018, with revenue soaring nearly 88% year over year.
• AI server revenue increased 757% year-over-year to $16.1 billion, and the full-year AI revenue forecast was raised to $60 billion.
• Dell now expects fiscal 2027 adjusted earnings per share of $17.90 and revenue between $165 billion and $169 billion.
• Revenue from the Infrastructure Solutions Group rose 181% to $29 billion, driven by AI servers, traditional servers, and networking gear.
• The Client Solutions Group saw a 17% increase in revenue to $14.6 billion.
• Dell anticipates supply constraints in the second half of fiscal 2027 for components like memory, processors, and hard drives.
• Donald Trump, a shareholder since the first quarter, publicly encouraged buying Dell stock.
• The Pentagon awarded Dell a $9.7 billion contract for Microsoft 365 services.
• Net income more than tripled to $3.44 billion in the latest quarter.
• Dell raised prices to reflect higher input costs due to the global memory shortage tied to the AI boom.