Server and Infrastructure Strength Drive Revenue Surge and Higher Outlook
Dell Technologies (DELL) posted its strongest revenue growth since returning to the public market in 2018, sending shares soaring as much as 31% in after-hours trading. The company reported quarterly revenue of $43.84 billion, an 88% increase year-over-year and well above analyst expectations.
The surge was largely driven by booming demand for artificial intelligence infrastructure. Dell’s AI server revenue jumped 757% from a year ago to $16.1 billion, fueled by strong demand for systems powered by advanced graphics processors. The company now expects full-year AI revenue to reach $60 billion, up from its previous forecast of $50 billion.
Dell’s Infrastructure Solutions Group, which includes servers and data center equipment, generated $29 billion in revenue, up 181% year-over-year. Meanwhile, its PC and client solutions business also delivered solid growth.
Looking ahead, Dell raised its fiscal 2027 guidance, reflecting confidence in continued AI adoption despite ongoing supply chain constraints and inflationary pressures.
