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Source: [https://www.cnbc.com/2026/05/28/dell-q1-earnings-report-2027.html](https://www.cnbc.com/2026/05/28/dell-q1-earnings-report-2027.html)
Dell reported its fastest pace of revenue growth for any period since its return to the public market more than seven years ago, and topped analysts’ estimates for sales and profit. The stock climbed as much as 31% in extended trading on Thursday.
Here’s how the company did in comparison with LSEG consensus:
* Earnings per share: $4.86 adjusted vs. $2.94 expected
* Revenue: $43.84 billion vs. $35.43 billion expected
Revenue soared nearly 88% year over year for the quarter, which ended on May 1, according to a company statement. Since its IPO in 2018, which came five years after the server maker was taken private, year-over-year growth has never exceeded 39%, a mark that was hit in the January period.
The expansion is being driven by artificial intelligence, with Dell assembling servers containing graphics processing units from the likes of Nvidia. Dell said it AI server revenue increased 757% from a year earlier to $16.1 billion. For the full year, Dell now expects AI revenue of $60 billion, up from a projection of $50 billion in February. That would reflect 144% year-over-year growth.
Dell said it had over 5,000 AI server customers, including neoclouds, sovereign clients and enterprises.
As of Thursday’s close, Dell’s stock was up more than 150% for the year, compared to the S&P 500′s roughly 10% gain.
Dell reported net income in the latest quarter more than tripled to $3.44 billion, or $5.24 per share, from $965 million, or $1.37 per share, a year earlier. In January, Dell raised prices to reflect higher input costs tied to the global memory shortage from the AI boom.
“We’re repricing, it feels like, every day, and I’m sure our customers feel that pain,” Jeff Clarke, Dell’s vice chairman and operating chief, said on a conference call with analysts. “Unfortunately, I don’t see that changing, given the world that we’re living in today, where you have an inflationary environment, whether it’s fuel, whether it’s raw materials, whether that’s DRAM, whether that’s NAND, CPUs. We are living in an inflationary environment that is changing at a rate that obviously we’ve never seen before ... and everything that we see suggests that continues.”
For the fiscal second quarter, Dell is targeting $4.80 in adjusted earnings per share on between $44 billion and $45 billion in revenue. Analysts polled by LSEG were looking for $2.98 per share in earnings and $34.97 billion in revenue.
Dell upped its forecast for the 2027 fiscal year, and now sees $17.90 in adjusted earnings per share, with between $165 billion and $169 billion in revenue, implying 47% growth at the middle of the range. Analysts surveyed by LSEG had anticipated $13.09 per share and $142.5 billion in revenue.
Revenue from Dell’s Infrastructure Solutions Group, featuring servers and other data center equipment rose 181% to $29 billion, well above StreetAccount’s $22.4 billion consensus. Growth accelerated across AI servers and traditional servers and networking gear.
Unit sales growth for traditional servers increased significantly, Clarke said.
“Think semiconductor companies, big tech, that are using it to actually drive some of the inference workloads and agentic workloads inside their environment,” he said.
Dell foresees supply constraints in the second half of fiscal 2027, Clarke said. In addition to memory, the company is short on standard computer processors, hard drives and other goods, Clarke said.
The Client Solutions Group, which includes consumer and business PCs and accessories, recorded a 17% increase in revenue to $14.6 billion, above the $12.8 billion StreetAccount consensus. During the quarter, Dell announced new laptops and workstations for business clients.
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