Dell Technologies Inc (NYSE:DELL) reported financial results for the first quarter after the market close on Thursday. Here’s a look at the key details from the print.
- Dell Technologies shares are testing new highs. Why did DELL hit a new high?
Dell Q1 Earnings Highlights
Dell reported first-quarter revenue of $43.84 billion, beating the consensus estimate of $35.45 billion, according to Benzinga Pro. The company posted first-quarter adjusted earnings of $4.86 per share, beating estimates of $2.94 per share.
Total revenue was up 88% on a year-over-year basis. Here’s a breakdown of revenue by category.
- Traditional Servers and Networking: $8.5 billion, up 92% year-over-year
- AI-Optimized Servers: $16.1 billion, up 757% year-over-year
- Storage: $4.3 billion, up 8% year-over-year
- Commercial Client: $13 billion, up 18% year-over-year
- Consumer: $1.6 billion, up 9% year-over-year
Cash flow from operations was $4.1 billion in the quarter. Dell said it returned $2.1 billion to shareholders via share repurchases and dividends during the period. The company ended the first quarter with approximately $11.58 billion in cash and cash equivalents.
“Our record Q1 performance reflects strong in-quarter demand, as well as our pace of innovation across the full stack of PCs, compute and storage,” said Jeff Clarke, vice chairman and COO of Dell.
“We booked $24.4 billion in AI orders and recognized $16.1 billion of AI server revenue. We’re increasing our AI server revenue expectations for FY27 to $60 billion, which only goes to show the AI opportunity shows no signs of slowing.”
What’s Next For Dell?
Dell expects second-quarter revenue to be between $44 billion and $45 billion, versus estimates of $34.99 billion. The company anticipates second-quarter adjusted earnings of $4.80 per share versus estimates of $2.98 per share.
Dell also raised its full-year outlook. Dell expects fiscal 2027 revenue to be in the range of $165 billion to $169 billion, up from a prior range of $138 billion to $142 billion. Analysts are looking for full-year revenue of $142.25 billion.
The company also raised its full-year adjusted earnings guidance from $12.90 per share to $17.90 per share, versus estimates of $13.09 per share.
Dell’s management team will further discuss the quarter on an earnings call scheduled for 4:30 p.m. ET.
DELL Shares Soar After Hours
DELL Price Action: Dell shares were up 12.19% in after-hours on Thursday, trading at $357 at the time of publication, according to Benzinga Pro.
Image: Shutterstock.com
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