Dell Q1 earnings report 2027
Dell It posted the fastest revenue growth of any period since its return to the public market more than seven years ago, beating analysts’ sales and profit forecasts. The stock rose as much as 19% in extended trading Thursday.
Here is the company’s performance compared to the LSEG consensus:
- Earnings per share: $4.86 vs expected $2.94
- Revenues: 43.84 billion dollars, while the expectation was 35.43 billion dollars
Revenues rose nearly 88% in the quarter ending May 1 from a year earlier, according to a report. expression. Since then IPO In 2018, five years after the server maker was privatized, annual growth never exceeded 39%; This was a figure seen in the January period.
The expansion is driven by AI, with Dell consolidating servers containing similar graphics processing units. Nvidia. Dell said its AI server revenue rose 757% year over year to $16.1 billion. For the full year, Dell expects AI revenue to rise to $60 billion, compared to $50 billion in February. This reflects a growth of 144%.
Dell said it has more than 5,000 AI server customers, including neoclouds, sovereign clients and enterprises.
As of Thursday’s close, Dell’s shares were up more than 150% for the year, compared to the S&P 500’s gain of roughly 10%.
One of Dell’s biggest winners was President Donald Trump, who became a shareholder in the first quarter, according to U.S. government ethics filings. “Go out and buy a Dell,” Trump said at a White House event earlier this month.
On Wednesday, the Pentagon announced a five-year contract with Dell worth $9.7 billion. Microsoft 365 productivity services. This comes nearly five months after Dell CEO Michael Dell and his wife, Susan Dell, donated $6.25 billion to fund the Trump Accounts of 25 million US children.
Dell said net income in the latest quarter more than tripled to $3.44 billion, or $5.24 per share, from $965 million, or $1.37 per share, a year earlier. In January, Dell raised prices to reflect higher input costs tied to the global memory shortage resulting from the AI boom.
Jeff Clarke, Dell’s vice president and chief operating officer, said in a conference call with analysts that the company faces “significant commodity constraints, particularly in DRAM and NAND.”
In the fiscal second quarter, Dell is targeting adjusted earnings of $4.80 per share and revenue of $44 billion to $45 billion. Analysts surveyed by LSEG were expecting earnings of $2.98 per share and revenue of $34.97 billion.
Dell raised its forecast for fiscal 2027 and now forecasts adjusted earnings per share of $17.90 and 47% growth in revenue, with a range between $165 billion and $169 billion. Analysts surveyed by LSEG expected $13.09 per share and revenue of $142.5 billion.
Revenue from Dell’s Infrastructure Solutions Group, which includes servers and other data center equipment, rose 181% to $29 billion; this was well above StreetAccount’s estimate of $22.4 billion. Growth in AI servers, traditional servers, and networking hardware has accelerated.
“We have seen AI inference workloads driving demand for traditional computing,” said Clarke.
The Customer Solutions Group, which includes consumer and business PCs and accessories, saw a 17% increase in revenue to $14.6 billion, above the StreetAccount consensus of $12.8 billion. Dell made a new announcement this quarter laptops and workstations for business customers.
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