Dell Technologies (DELL) reported record earnings on October 3, 2023, with revenues increasing by 58% year-over-year to $47 billion and adjusted earnings per share surging 203% to $7.04, exceeding estimates by over 40%. The growth has been driven primarily by Dell’s Infrastructure Solutions Group, which saw a revenue jump of 89% to $31.8 billion, yielding an operating income of $4.8 billion.
Dell generated $16.4 billion in AI-optimized server revenue during the quarter, with AI server orders reaching a record $60.9 billion. The company ended the quarter with a substantial $95 billion AI server backlog and raised its fiscal 2027 revenue forecast to $192 billion, marking a predicted 69% year-over-year growth.
While Dell’s market capitalization has reached approximately $334 billion, it remains smaller than the trillion-dollar companies in the “Magnificent Seven.” Nevertheless, the firm’s substantial growth and backlog suggest a strong earnings trajectory, raising its Zacks Rank to #2 (Buy) as analysts anticipate continued positive revisions in earnings estimates.
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