AI Boom Powers Dell Stock’s Post-Earnings Rally. Get Ready for More Upside Ahead.

Shares of Dell Technologies (DELL) soared more than 39% in after-hours trading after the company delivered blockbuster first-quarter fiscal 2027 results, driven by explosive demand for artificial intelligence (AI) infrastructure. Dell crushed Wall Street expectations and prompted management to increase its full-year outlook, highlighting that the company is among the biggest beneficiaries of the AI spending boom.

Dell reported first-quarter revenue of $43.8 billion, representing 88% year-over-year increase. Moreover, its revenue was far above management’s prior guidance range of $34.7 billion to $35.7 billion. Profitability improved significantly alongside the surge in revenue. Gross margin dollars climbed 57% to $7.8 billion, while operating income jumped 154% to $4.2 billion.

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Net income nearly tripled to $3.2 billion, driven by strong operational execution across the business. Adjusted earnings per share (EPS) reached a record $4.86, significantly outperforming both management’s guidance of $2.90 and analyst expectations of $2.79.

The company’s Infrastructure Solutions Group (ISG) was the key growth engine behind the quarter. ISG revenue surged to a record $29 billion, up 181% year-over-year. AI server demand remained exceptionally strong throughout the quarter, with Dell generating $24.4 billion in AI orders and registering $16.1 billion in AI server revenue.