Dell skyrockets 32% after blowout earnings, closes best day ever

shares Dell Technologies It closed 32.76% higher on Friday, capping its best day ever after reporting the fastest revenue growth since the company returned to the public market in 2018.

The stock narrowly surpassed its previous record set on March 1, 2024, with a 31.6% rise. Shares are up 234% in 2026.

Dell, which reported first-quarter earnings after the bell on Thursday, has seen a flood of AI-related demand for its servers that include graphics processing units from companies like Dell. Nvidia.

Quarterly revenue increased nearly 88% year over year; AI server revenue alone rose 757% year over year to $16.1 billion. Adjusted earnings per share came in at $4.86, above expectations of $2.94.

Ben Reitzes, head of technology research at Melius, said Dell had “never seen anything like it” in its latest quarter.

“They crossed every line in the model, so it wasn’t just AI, it was a great application,” Reitzes told CNBC’s “Squawk on the Street.” “They beat everything we thought they would.”

Some analysts on Friday were forced to rethink their approach to Dell after the surprise raid.

Morgan Stanley wrote that they expected a clean win and increase this quarter, but “eat our humble pie” based on Dell’s results.

“We got this wrong and our model/PT is being reviewed,” analysts wrote. “This was one of the most impressive quarters we’ve seen in our time covering Hardware, especially in the context of what’s happening in the component universe.”

Even before Friday’s move, Dell’s shares had been on the rise, nearly tripling in the past year as Dell’s chairman and CEO, Michael Dell, forged strong ties with President Donald Trump during his second term.

Government ethics filings showed the president purchased $1 million to $5 million in Dell shares on February 10; These purchases come after Michael and Susan Dell announced a $6.25 billion gift to help fund Trump Accounts for 25 million U.S. children.

At a Mother’s Day event at the White House earlier this month, Trump thanked Dells for their Trump Account participation while telling Americans to “go out and buy a Dell.”

On Wednesday, Dell signed a Pentagon contract worth $9.7 billion to provide a software package to the US military.

— CNBC’s Garrett Downs, Hayley Cuccinello and Jordan Novet contributed to this report.