Dell Jumps 39% After Hours as AI Server Sales Fuel Earnings Surprise

Dell Technologies shares jumped 39.09% in after-hours trading on May 28 to $441 after the US IT hardware company reported stronger results for the first quarter of fiscal 2027, covering February through April.

Revenue for the February-April quarter rose 88% from a year earlier to $43.8 billion, while earnings per share increased 214% to $4.86.

The performance was driven by Dell's artificial intelligence server business. First-quarter AI server revenue surged 757% from a year earlier to $16.1 billion. Its AI server backlog stood at $51.3 billion at the end of April, and Dell said it has about 5,000 AI server customers.

Dell raised its full-year revenue forecast to $165 billion to $169 billion from $138 billion to $142 billion. It also increased its earnings-per-share outlook to $17.90 from $12.90. The company lifted its AI server revenue forecast to $60 billion from $50 billion.

Dell said demand for AI servers is exceeding supply and that its AI server pipeline is several times larger than its backlog. It did not disclose a specific figure.

Jeff Clarke, Dell's chief operating officer, told a conference call that rising semiconductor prices are the biggest variable. Prices for key components such as DRAM, NAND flash and central processing units are being repriced almost daily, he said.

Lee Mi-a, Hankyung.com reporter mia@hankyung.com