Dell Stock Surges Over 38% in After-Hours Trading! Q1 Revenue Far Exceeds Market Expectations

BlockBeats News, May 29th, Dell reported a revenue of $43.84 billion for the first quarter of its 2027 fiscal year, compared to $23.378 billion in the same period last year, exceeding market expectations of $35.408 billion. Driven by demand for AI products, Dell's first-quarter sales soared by 88%, leading the company to raise its full-year outlook. The company announced on Thursday that it now expects full-year revenue to reach $165 billion to $169 billion, up from the previous range of $138 billion to $142 billion. The company also raised the midpoint of its adjusted earnings per share outlook from $12.90 to $17.90.

In the first quarter, Dell achieved a profit of $3.44 billion, or $5.24 per share; in the same period last year, the profit was $965 million, or $1.37 per share. Excluding certain one-time items, adjusted earnings per share were $4.86, higher than the analyst expectations of $2.96 from FactSet's survey. Revenue surged by 88% to $43.84 billion. The growth in revenue was driven by the Infrastructure Solutions Group, which saw its revenue nearly double to $29 billion. The growth of this segment was propelled by AI-optimized servers and traditional servers.

Dell expects revenue for the current second quarter to be between $44 billion and $45 billion, with an adjusted earnings per share midpoint of $4.80. According to FactSet's analyst survey, the revenue is expected to be $35.1 billion, with adjusted earnings per share of $2.99.

After the financial report was released, Dell's stock surged in after-hours trading, rising by 38.29%.