ROUND ROCK, Texas, May 28, 2026, 17:08 CDT
Dell Technologies increased its full-year sales and profit outlooks Thursday, and bumped up its fiscal 2027 AI-server revenue target to about $60 billion. The move points to higher demand for AI hardware. Shares jumped roughly 22% in after-hours trade following the report, Reuters said.
Dell’s update shows big buyers are still flocking to AI servers, even with hardware stocks coming off a big rally. Investors have been looking for signs that the AI infrastructure push isn’t done yet. For now, demand for high-end servers that run and train AI models is outpacing supply, according to the company’s report.
Dell posted revenue of $43.84 billion for the quarter ended May 1, up 88%, topping the $35.43 billion average analyst estimate from LSEG. Adjusted earnings came in at $4.86 a share, beating the $2.94 target.
Dell said it booked $24.4 billion in AI orders and took in $16.1 billion from AI server revenue, according to vice chairman and COO Jeff Clarke. “No signs of slowing,” Clarke said of the AI business. Dell Technologies
Dell reported a record $51.3 billion in AI backlog at quarter’s end. The company said it’s still seeing demand outpace supply, pointing to memory as the biggest bottleneck. Dell also said its AI customer base grew to more than 5,000, including neoclouds, sovereign customers, and enterprises. Neoclouds are newer cloud players focused on leasing AI compute power.
Dell’s infrastructure solutions group posted record sales of $29.0 billion, a jump of 181%. Revenue from AI-optimized servers shot up 757%. Traditional server and networking sales climbed 92%. Storage was up 8%.
PC demand showed up this quarter. Client Solutions Group posted a 17% revenue bump to $14.6 billion as commercial client revenue climbed 18% and consumer revenue grew 9%.
Dell lifted its fiscal 2027 revenue target to $165 billion to $169 billion, above the earlier $138 billion to $142 billion range. The company now sees adjusted earnings at $17.90 a share at the midpoint, up from $12.90. For the second quarter, Dell guided for $44 billion to $45 billion in revenue and about $4.80 a share in adjusted earnings.
Dell CFO David Kennedy said the company started the year with “clear momentum” and pointed to solid execution in supply chain, sales, and pricing. Operating cash flow was $4.1 billion, with $2.1 billion given back to shareholders through buybacks and dividends. Dell Technologies
It’s not just Dell seeing demand. Reuters said big U.S. tech names like Alphabet and Amazon expect to put over $700 billion into AI infrastructure this year, which helps suppliers like Dell and Super Micro Computer. Dell customers also include CoreWeave, Honeywell and Samsung Electronics.
Dell is “better positioned than rivals” due to its scale, supplier ties and its ability to prioritize demand in the memory-chip shortage, according to Melissa Otto, head of S&P Global Visible Alpha research. Reuters
Dell has cautioned that strong momentum in AI could stumble. The company pointed to risks from trade disruption, supplier issues, relying on single or limited-source suppliers, competition, and changes in AI demand. Dell also said in its statement that memory is still its biggest supply bottleneck.
Dell is moving further into AI hardware with this quarter, beyond its core PC business. The challenge now is to protect margins as demand surges and suppliers adjust prices in the coming quarters.
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