Dell Technologies (DELL) shares surged after the company reported fiscal first-quarter 2027 earnings that far exceeded analyst expectations. The tech giant posted adjusted earnings of $4.86 per share on revenue of $43.8 billion, up 88% year-over-year. This performance surpassed estimates of $2.99 per share on $35.52 billion in sales. Fueling this growth was a massive increase in AI server revenue, which jumped 757% year-over-year to $16.1 billion.
The Infrastructure Solutions Group (ISG), which includes Dell's AI server business, saw revenue climb 181% to $29 billion. Client Solutions Group (CSG) revenue also increased, rising 17% to $14.6 billion. "Our record Q1 performance reflects strong in-quarter demand, as well as our pace of innovation across the full stack of PCs, compute and storage," said Jeff Clarke, vice chairman and chief operating officer of Dell Technologies. Clarke also noted the company booked $24.4 billion in AI orders.
Dell raised its full-year fiscal 2027 revenue outlook to $167 billion at the midpoint, up nearly 50% year-over-year. The company expects second-quarter revenue between $44 billion and $45 billion, with adjusted earnings of $4.80 per share, significantly above analyst expectations. The company now anticipates full-year adjusted earnings of $17.90 per share, well above the $13.12 analysts had predicted.
Chief Financial Officer David Kennedy highlighted the company's strong execution, noting record revenue, EPS, and Q1 cash flow. He also emphasized continued strong shareholder returns of $2.1 billion. Dell's impressive results and optimistic outlook suggest the company is well-positioned to capitalize on the growing demand for AI infrastructure.
