New York, Feb 28, 2026, 11:16 EST — The market isn’t open.
- Dell jumped 21.9% by Friday’s close after the company raised its fiscal 2027 outlook.
- The company pointed to a $43 billion AI server backlog and said capital returns have picked up.
- Investors turn their focus to execution risks and potential supply issues, while keeping an eye on next week’s U.S. jobs report.
Dell Technologies soared 21.93% Friday, notching its biggest one-day gain in months after boosting its full-year forecast. The company pointed to stronger demand for AI-optimized servers as the driver.
The surge comes even as U.S. tech stocks stumble this week, with hardware players forcing their way into the AI conversation again. Investors are shifting toward companies capable of turning AI buzz into real revenue right away, instead of just selling lofty promises.
Competition is sharpening. Leading cloud and tech firms plan to boost their AI infrastructure budgets this year, turning attention to suppliers who can move big orders fast.
Dell reported its newest figures and outlooks in a Feb. 26 SEC filing. Revenue for the fourth quarter landed at $33.379 billion, up 39% year-over-year. Non-GAAP diluted EPS was $3.89, excluding certain items.
Dell’s outlook for fiscal 2027 points to revenue between $138 billion and $142 billion, and executives see AI-optimized server sales making up about $50 billion of that. For the first quarter, Dell is guiding to revenue somewhere between $34.7 billion and $35.7 billion.
Jeff Clarke, Dell’s vice chairman and COO, described the AI boom as transformational for the company. He pointed to more than $64 billion worth of AI-optimized server orders already lined up, and noted a “record backlog of $43 billion” going into fiscal 2027. SEC
Dell’s Infrastructure Solutions Group posted a quarterly revenue record, hitting $19.602 billion—a 73% surge. AI-optimized server revenue? That shot up 342% to $9.0 billion. The Client Solutions Group, focused on PCs, reported fourth-quarter revenue of $13.494 billion, reflecting a 14% increase.
Dell ratcheted up its capital return plans, boosting its dividend by 20% and signing off on an extra $10 billion for share repurchases. CFO David Kennedy pointed to roughly $140 billion in revenue, referencing the midpoint in Dell’s fiscal 2027 forecast.
Dell wrapped up Friday at $148.08, after swinging from a low of $136.11 to a high of $148.86 in the day’s action. Trading volume hit about 33.3 million shares, according to historical pricing data.
Rivalry is heating up, with Dell and Super Micro Computer riding the AI infrastructure wave—system vendors across the sector are reaping the rewards. But when a company stumbles on delivery or sees its margins compress, the market’s response is swift and unforgiving.
Execution is the hurdle now. In its filing, Dell points to supply-chain dependencies, competition, and uncertain AI demand as key risks. The big question for investors: how fast can the backlog convert to actual shipments, and do margins stay intact as that happens?
With markets shut for the weekend, traders are already eyeing Monday — scanning for signs of momentum after the latest earnings gap. All attention shifts to fresh analyst calls that might rattle Dell’s supply and pricing forecasts. The real catalyst looms later: the February U.S. Employment Situation report lands at 8:30 a.m. ET on March 6.
