Dell Projects 103% AI Server Revenue Surge, Raises Dividend 20% and $10B Buyback
Dell forecast AI server revenue will grow 103% to about $50 billion in fiscal 2027 and announced a 20% dividend increase alongside a $10 billion buyback program. Q4 revenue rose 39% to $33.38 billion with Infrastructure Solutions up 73%, driving an 11% premarket share jump.
1. Fiscal 2027 AI Server Forecast
Dell forecasts AI server revenue to grow 103% to approximately $50 billion in fiscal 2027, driven by enterprise demand for high-performance compute infrastructure for artificial intelligence workloads.
2. Q4 Results and Outlook
In fiscal Q4, Dell reported revenue of $33.38 billion, up 39% year-over-year, with Infrastructure Solutions Group revenue surging 73% to $19.6 billion and servers and networking revenue reaching $9 billion. The company expects Q1 revenue of $34.7–$35.7 billion with adjusted EPS near $2.90, and full-year fiscal 2027 guidance of $138–$142 billion in revenue.
3. Dividend Hike and Share Repurchase
Dell approved a 20% increase to its cash dividend and authorized an additional $10 billion share repurchase program, underlining management’s commitment to returning capital driven by strong cash flows from its AI infrastructure business.
4. Memory Cost Headwinds for PC Business
Rising DRAM prices, projected at a 90–95% growth rate in Q1 2026, pose cost pressures on Dell’s Client Solutions Group—particularly gaming PCs—though Dell’s scale and pricing strategies may mitigate margin headwinds better than key competitors.