Shares of Dell Technologies (DELL) soared 22% on Feb. 27 after the company reported strong fiscal Q4 earnings and Q1 guidance.
In 1984, Michael Dell started the company while he was a student at the University of Texas. Originally focused on selling PCs, the company now sees AI as its biggest opportunity.
Dell sells AI-optimized servers and integrated infrastructure that help companies run large language models in their own data centers.
Nvidia (NVDA) is a key partner of Dell, with Dell’s systems built using Nvidia GPUs.
“Nobody is better at building end-to-end systems of very large scale for the enterprise than Dell,” Nvidia CEO Jensen Huangsaid in 2024.
Dell stock surged more than 50% in 2024 on the market’s high expectations for its business around AI. But the stock is up just 9.23% in 2025, while the S&P 500 rallied 16.39% last year.
For the quarter ended Jan. 30, Dell reported adjusted earnings of $3.89 per share, beating Wall Street’s estimate of $3.52, data from Investing.com shows. Revenue came in at $33.38 billion, topping the $31.41 billion forecast.
Dell posted record full-year revenue of $113.5 billion, a 19% increase from the prior year, while diluted earnings per share climbed to a record $8.68, up 36% year over year.
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The company expects fiscal 2027 revenue in the range of $138 billion to $142 billion, well above the $124.7 billion consensus. The midpoint of $140 billion implies about 23% year-over-year growth. It also expects diluted EPS to be $11.52 at the midpoint, up 33% from last year.
Dell’s chief operating officer, Jeff Clarke, said the past year was “a defining year” marked by record full-year revenue, EPS, and cash generation. “The AI opportunity is transforming our company,” Clarke said.
Notably, Dell expects revenue from its artificial intelligence servers to reach $50 billion in fiscal 2027, more than double the previous year.
“Our customer base [for AI products] surpassed 4,000, with growth across neo clouds, sovereigns, and enterprise customers—evidence that demand is broadening across all customer types,” Clarke later said in an earnings call.
Dell’s AI server revenue accounts for roughly 21.7% of its total sales in the past year.
Dell operates through two core segments: the Infrastructure Solutions Group, which sells AI-optimized servers, storage and networking for data centers, and the Client Solutions Group, which includes its PC business.
ISG is Dell’s main growth driver, generating about $60.8 billion of the company’s $113.5 billion in revenue last year, up 40%. CSG brought in about $51 billion with growth of around 5%.
