TLDR
- Dell posted Q4 adjusted EPS of $3.89, beating the $3.52 estimate, with revenue of $33.4 billion — up 39% year-over-year.
- AI-optimized server revenue jumped 342% to $9.0 billion, with a record $43 billion backlog.
- Dell projects FY2027 revenue of $138–$142 billion, well above the $124.9 billion consensus.
- The stock surged over 13% in after-hours trading, reaching $137.40.
- Dell raised its dividend by 20% and expanded its share repurchase program by $10 billion.
Dell Technologies posted a strong fiscal fourth quarter, beating analyst expectations on both earnings and revenue. The results sent the stock up more than 13% in after-hours trading.
$DELL Q4’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $33.4B (Est. $31.41B) 🟢; UP 39% YoY
🔹 Adj. EPS: $3.89 (Est. $3.52) 🟢; UP 45% YoY
🔹 ISG revenue: $19.6B; UP 73% YoY
🔹 AI-optimized servers revenue: $9.0B; UP 342% YoYFY27 Guide:
🔹 Rev: $138B-$142B (Est. $124.9B) 🟢; + 23% YoY… pic.twitter.com/B1MIP2Lazs— Wall St Engine (@wallstengine) February 26, 2026
Adjusted EPS came in at $3.89, ahead of the $3.52 consensus estimate. Revenue hit $33.4 billion for the quarter, a 39% jump from the same period last year and above the $31.41 billion markets had forecast.
The big number, though, was in AI servers. Dell’s Infrastructure Solutions Group reported AI-optimized server revenue of $9.0 billion — a 342% year-over-year increase.
That’s not a typo.
The company also reported a record AI server backlog of $43 billion. Dell closed more than $64 billion in AI-optimized server orders over the full fiscal year and shipped more than $25 billion worth.
“The AI opportunity is transforming our company,” said Jeff Clarke, vice chairman and COO. “We are entering FY27 with record backlog of $43 billion — powerful proof that our engineering leadership and differentiated AI solutions are winning.”
FY2027 Outlook
Dell’s full-year guidance was equally strong. The company projected FY2027 revenue of between $138 billion and $142 billion — well above the $124.9 billion consensus.
Annual EPS guidance came in at $12.90, compared to analyst expectations of $11.49. First-quarter revenue is expected to grow 51% year-over-year.
Dell also expects AI server revenue to reach approximately $50 billion in the current fiscal year, a 103% increase from FY2026.
On the capital return side, Dell raised its cash dividend by 20% and expanded its share repurchase program by $10 billion.
A Note of Caution
Not everyone was entirely convinced. Analysts at BofA Securities flagged uncertainty around demand elasticity, pointing to “swift and significant price actions” taken by Dell in recent months.
Server prices were raised on December 10, driven partly by rising memory chip costs. PC price changes followed on January 6.
Clarke acknowledged the price increases but framed them as a response to input cost pressures rather than a demand strategy.
After-hours trading pushed DELL to $137.40 per share, a gain of 13.21% following the earnings release. By Friday premarket, the stock was up more than 12%.
The record $43 billion AI server backlog heading into FY2027 was the most recent hard data point from the company.
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