Dell Technologies Inc. reported a remarkable 37.3% surge in its shares following the announcement of its fiscal Q1 2027 results on May 28. The company achieved non-GAAP earnings of $4.86 per share, exceeding the Zacks Consensus Estimate by 59.9%, and revenues soared 88% year-over-year to $43.84 billion, surpassing expectations by 23.62%. Notably, Dell secured $24.4 billion in AI orders during the quarter, reflecting strong demand for AI infrastructure.
The company’s operating cash flow reached a record $4.1 billion, and it returned $2.1 billion to shareholders via buybacks and dividends. Dell’s fiscal 2027 guidance anticipates revenues between $165 billion and $169 billion, representing a 47% year-over-year increase at the midpoint, alongside expected non-GAAP earnings of $17.90 per share. Furthermore, the company’s outlook for AI-optimized server revenue is now set at approximately $60 billion, showcasing its confidence in ongoing demand.
Year-to-date, Dell’s stock has surged 245.8%, outperforming major competitors like Apple and Hewlett Packard Enterprise. As of the end of the quarter, Dell’s AI backlog stood at $51.3 billion, and it serves over 5,000 AI customers globally. Despite some supply constraints in memory components affecting margins, demand continues to outpace supply, indicating strong revenue visibility.
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