TLDR
- DELL stock surged over 32% on Friday after reporting Q1 FY2027 revenue of $43.8 billion, up 88% year-over-year
- EPS came in at $4.86, crushing the $2.96 analyst estimate by $1.90
- AI-optimized server revenue jumped 757% to $16.1 billion, with $24.4 billion in AI orders in a single quarter
- Dell raised full-year FY2027 revenue guidance to $165–$169 billion, up from a prior outlook of ~$140 billion
- Multiple Wall Street firms raised price targets sharply, with JPMorgan going to $500 and Loop Capital as high as $550
Dell Technologies (DELL) stock jumped over 32% on Friday, closing at $420.91, after the company posted first quarter fiscal 2027 results that blew past Wall Street expectations on nearly every line.
Revenue hit $43.8 billion, up 88% year-over-year, against analyst estimates of $35.5 billion. EPS came in at $4.86 versus a $2.96 consensus — a beat of $1.90 per share.
The AI server numbers were the real headline. Dell reported $16.1 billion in AI-optimized server revenue, a 757% jump year-over-year. The company booked $24.4 billion in AI orders during the quarter and ended the period with a backlog of $51.3 billion in AI server orders.
Management raised full-year FY2027 revenue guidance to a range of $165–$169 billion, including $60 billion from AI server sales alone. The prior outlook was around $140 billion. Analysts had been expecting roughly $142.1 billion.
Wall Street Raises Targets Across the Board
The analyst community responded quickly. Citi lifted its price target to $475 from $290, keeping a Buy rating, and noted that “demand continues to exceed supply, supporting visibility into a sustained backlog through year-end.”
Evercore ISI raised its target to $450 from $270, maintaining Outperform, and called the results evidence of “a much stronger server cycle than previously expected.” The firm noted Dell remains supply-constrained, meaning better allocations could push estimates even higher.
JPMorgan moved its price target from $280 to $500, citing improved visibility into a higher sustainable earnings growth rate. The firm now applies a 25x multiple to Dell, up from high-teens previously.
Loop Capital went furthest, raising its target to $550 and calling the quarter “a historic blowout” driven by AI factory scaling and operating leverage.
Wells Fargo raised its target to $505 from $270, and Melius Research set a $565 target. The average analyst target now sits at $421, according to MarketBeat data, with 20 Buy ratings, one Strong Buy, eight Hold ratings, and one Sell.
AI Orders and Backlog Point to Continued Momentum
Dell’s $51.3 billion AI server backlog is the clearest indicator that demand is not slowing. The company acknowledged it remains supply-constrained, which means revenue could be even higher if supply keeps up with orders.
Crake Asset Management increased its Dell stake by 8.2% in Q4, bringing holdings to 835,348 shares worth approximately $105.2 million. Institutional investors now own 76.37% of the stock.
DELL opened Friday at $420.96. The stock’s 52-week low is $106.38, meaning the stock has roughly quadrupled from its lows. The 50-day moving average stood at $216.82 before Friday’s move.
For Q2 FY2027, Dell guided for EPS of $4.80, and the company’s full-year EPS outlook is set at $17.90.
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