Shares of Dell Technologies (DELL) soared 22% on Feb. 27 after the company reported strong fiscal Q4 earnings and Q1 guidance.
In 1984, Michael Dell started the company while he was a student at the University of Texas. Originally focused on selling PCs, the company now sees AI as its biggest opportunity.
Dell sells AI-optimized servers and integrated infrastructure that help companies run large language models in their own data centers.
Nvidia (NVDA) is a key partner of Dell, with Dell’s systems built using Nvidia GPUs.
“Nobody is better at building end-to-end systems of very large scale for the enterprise than Dell,” Nvidia CEO Jensen Huangsaid in 2024.
Dell stock surged more than 50% in 2024 on the market’s high expectations for its business around AI. But the stock is up just 9.23% in 2025, while the S&P 500 rallied 16.39% last year.
Dell stock is up 17.64% year-to-date.Getty Images · Getty Images
For the quarter ended Jan. 30, Dell reported adjusted earnings of $3.89 per share, beating Wall Street’s estimate of $3.52, data from Investing.com shows. Revenue came in at $33.38 billion, topping the $31.41 billion forecast.
Dell posted record full-year revenue of $113.5 billion, a 19% increase from the prior year, while diluted earnings per share climbed to a record $8.68, up 36% year over year.
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The company expects fiscal 2027 revenue in the range of $138 billion to $142 billion, well above the $124.7 billion consensus. The midpoint of $140 billion implies about 23% year-over-year growth. It also expects diluted EPS to be $11.52 at the midpoint, up 33% from last year.
Dell’s chief operating officer, Jeff Clarke, said the past year was “a defining year” marked by record full-year revenue, EPS, and cash generation. “The AI opportunity is transforming our company,” Clarke said.
Notably, Dell expects revenue from its artificial intelligence servers to reach $50 billion in fiscal 2027, more than double the previous year.
“Our customer base [for AI products]…
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