Dell Technologies reported first-quarter fiscal 2027 revenue of $43.84 billion, surpassing the Zacks Consensus Estimate of $35.46 billion by 23.62%. Adjusted earnings per share came in at $4.86, significantly above the predicted $3.04, marking a 60.13% beat. The company attributed its record performance to robust AI demand, with $24.4 billion in AI orders and a backlog of $51.3 billion as of the quarter’s end.
Despite strong demand, CFO David Kennedy indicated that supply constraints, particularly in components like DRAM, NAND, and CPUs, may limit future results. Dell has raised its fiscal 2027 AI server revenue target to $60 billion, while total revenue guidance is now between $165 billion to $169 billion, reflecting nearly 50% growth year-over-year. The company projects second-quarter revenue between $44 billion and $45 billion.
The Infrastructure Solutions Group saw a remarkable 181% revenue increase to $29 billion, aided by a surge in traditional servers and networking. As customers shift towards longer supply arrangements, Dell emphasizes a disciplined approach to pricing and margins, signaling resilience amid the supply challenges.
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