Dell Raises Full-Year Guidance After Q1 Revenue Jumps 88% on AI Servers
DELL•Dell’s first-quarter revenue jumped 88% to $43.84 billion, driven by a 757% surge in AI-optimized server sales, lifting adjusted EPS to $4.86 per share. The company raised its full-year revenue outlook to $165–169 billion, boosted EPS guidance to $17.90 and secured a $9.7 billion defense contract.
1. First-Quarter Performance
Dell’s fiscal Q1 revenue climbed 88% year-over-year to $43.84 billion, with its infrastructure solutions group revenue nearly tripling to $29 billion. Sales of AI-optimized servers surged 757% to $16.1 billion, driving adjusted EPS up to $4.86 per share.
2. Upgraded Outlook
Following the strong quarter, Dell raised its full-year revenue forecast to a range of $165 billion to $169 billion, up from $138 billion to $142 billion. Adjusted earnings guidance was lifted to $17.90 per share at the midpoint, compared with the prior midpoint of $12.90.
3. Major Defense Contract Win
Dell secured a $9.7 billion contract to modernize defense department communication and collaboration systems, expanding its presence in government infrastructure projects. This award underscores the company’s diversified revenue streams beyond commercial AI deployments.
4. Market Reaction
The stock surged 40% in premarket trading on the earnings beat and upgraded guidance, highlighting investor confidence in Dell’s AI server momentum. Elevated bullish sentiment and high short interest suggest potential for further upside.
