New York, Feb 27, 2026, 05:07 EST — Premarket
- Dell shares jumped roughly 10% in after-hours trading, lifted by its forecast and AI server goals.
- Company bumped its dividend up 20% and greenlit another $10 billion for its share buyback program.
- Memory costs and margins take center stage for investors, with attention now shifting to how much of the late rally sticks at the open.
Dell Technologies (DELL) jumped roughly 10% in late trading as the company mapped out $50 billion in AI server revenue for fiscal 2027, raising the bar for Friday’s open. Bloomberg.com
This shift is key for investors, who are still trying to figure out if the AI spending surge is resulting in concrete hardware orders—or if it’s just driving up the hype and putting a squeeze on certain components. Dell, right in the thick of it, sells servers and PCs alike.
Dell hiked its cash dividend by 20% and bumped its share repurchase authorization by another $10 billion, the company announced. For fiscal 2027, Dell is projecting revenue in the $138 billion to $142 billion range, easily topping what analysts were expecting. The company is targeting a 103% jump in AI-optimized server revenue, aiming for roughly $50 billion, as Alphabet, Microsoft, Amazon, and Meta are set to pour at least $630 billion into AI infrastructure this year — a windfall for suppliers like Dell and Super Micro Computer. “Dell was getting ahead of a challenge,” said Hendi Susanto, portfolio manager and research analyst at Gabelli Funds, noting the same pressures have yet to ease for other players. Reuters
Dell slipped 1.64% on Thursday, ending the session at $121.45, underperforming as the wider market also lost ground. Roughly 12.7 million shares changed hands—substantially above its 50-day average, according to MarketWatch data. MarketWatch
Dell’s fourth-quarter revenue surged 39% to a record $33.4 billion, with non-GAAP diluted EPS up 45% at $3.89—figures that leave out some items like certain charges. The company put out a first-quarter revenue outlook between $34.7 billion and $35.7 billion and is guiding for non-GAAP EPS around $2.90. For fiscal 2026, Dell closed over $64 billion in AI-optimized server orders and heads into fiscal 2027 carrying a $43 billion backlog, meaning orders haven’t shipped yet. Chief operating officer Jeff Clarke described fiscal 2026 as a “defining year,” saying the “AI opportunity is transforming our company.” Business Wire
During the earnings call, Clarke described how customers were hit with “sticker shock” at first, but quickly prioritized locking in supply. Dell hiked server prices back on Dec. 10, then adjusted PC pricing on Jan. 6, both moves prompted by spiking memory chip costs and tougher trade rules—pressures that rival HP also responded to. The company now counts more than 4,000 AI server customers, with names like xAI and CoreWeave on the list. The Economic Times
Dell is extending its reach toward the edge, unveiling the PowerEdge XR9700 on Wednesday. The new server, built to handle the elements thanks to ruggedization and liquid cooling, targets outdoor uses like cloud-based radio access networks (Cloud RAN) and edge AI. The company expects global availability in the back half of 2026. Business Wire
The AI boom fueling demand is also squeezing the parts supply, and investors are eyeing whether pricier memory chips could crimp margins if Dell loses some pricing leverage. Gross margin for Dell landed at 20.5% in the fiscal fourth quarter, a touch over the company’s guidance, according to MarketWatch. MarketWatch
AI server competition stays fierce, while PCs are hardly immune—corporate upgrades stall, consumer demand can dip. Margins, not simply sales, are what investors keep zeroing in on.
Traders are eyeing whether that after-hours pop sticks once U.S. markets open at 9:30 a.m. ET. The focus will also be on how management’s Q1 outlook plays when the stock returns to regular trading.
