Dell AI Server Revenue Explodes 757%, Sends Stock Surging 32% in Its Best Day Ever
Wall Street did not see this coming. Dell Technologies just posted the most stunning quarterly results in its history as a public company, and the number that stopped analysts cold was its Dell AI server revenue up 757% year over year in a single quarter. The stock responded in kind, surging more than 32% on Friday, marking its best single-day performance since returning to public markets in 2018.
Dell reported its fastest pace of revenue growth since its return to the public market in 2018, with AI server revenue soaring 757% over last year. Quarterly revenue rose nearly 88% year over year, with AI server revenue alone climbing to $16.1 billion. Adjusted earnings per share came in at $4.86, crushing expectations of $2.94.
The server maker reported total revenue of $43.84 billion for the period ended May 1, well above the $35.43 billion analysts had expected, according to LSEG consensus data. The scale of the beat left many on Wall Street scrambling to revise their models. Morgan Stanley analyst Erik Woodring said the massive quarter caught his team completely off guard, adding it was among the most impressive hardware quarters he had ever seen.
Dell’s Infrastructure Solutions Group covering servers, networking, and storage brought in $29 billion, a 181% increase, while its PC-oriented Client Solutions Group recorded revenues of $14.6 billion, up 17%. Dell’s Vice Chairman and COO Jeff Clarke noted the company booked $24.4 billion in AI orders during the quarter alone.
The momentum carried into the company’s full-year guidance
Revenue for the fiscal year ending in January 2027 now projected at approximately $167 billion, including $60 billion from AI server sales up sharply from a prior outlook of around $140 billion and well ahead of the analyst consensus estimate of $142.1 billion.
Clarke said on the earnings call that Dell exited the quarter with an AI server backlog of over $51 billion, with demand continuing to exceed supply. He also said the company expects to exit 2026 with a strong backlog, adding “the AI opportunity shows no signs of slowing.”
Shares are now up 234% in 2026, a run that would have seemed implausible at the start of the year. The results confirm Dell’s transformation from a cyclical hardware company into one of the central infrastructure plays of the AI supercycle and investors, for now, are betting it has further to run.
