Dell Technologies: A Record-Breaking Surge in AI Server Revenue
Dell Technologies had its most successful trading day on Friday, May 29, 2026. Shares soared by a whopping 32.76% following an impressive earnings report. This report was largely driven by an unprecedented demand for AI servers. The tech giant reported a first-quarter revenue of $43.8 billion, marking an 88% year-over-year surge. This significantly surpassed analyst expectations of $35.5 billion.
The explosive growth was primarily fueled by AI infrastructure sales. AI server revenue alone reached a staggering $16.1 billion, representing a 757% increase from the previous year. Dell recorded $24.4 billion in AI orders during the quarter, ending with a record backlog of $51.3 billion in AI-related contracts.
The company significantly adjusted its fiscal 2027 outlook, projecting a total revenue of approximately $167 billion. This includes an estimated $60 billion from AI server sales alone, far exceeding its previous guidance of $140 billion.
Adjusted earnings per share were reported at $4.86, nearly double the consensus estimate of $2.94. Analysts have described the quarter as historic. One analyst noted they had “never seen anything like” Dell’s latest performance. The company’s shares are now up 234% year-to-date in 2026, cementing Dell’s transformation from a traditional PC maker to a frontline AI infrastructure powerhouse.
Source: CNBC