Dell Technologies (DELL, Financial) has reported a promising full-year profit outlook, surpassing Wall Street's expectations, driven by a significant increase in AI server orders. The company's AI server orders for the quarter ending May 2 have already exceeded the total value anticipated from AI server shipments for the entire fiscal year 2025. Dell anticipates continued growth in profitability for its computing, server, and storage business, alongside accelerated stock buybacks to boost earnings per share.
For the next fiscal year ending January 2026, Dell forecasts an adjusted earnings per share of approximately $9.40, exceeding its previous estimate from February. The company's sales forecast remains at a midpoint of $103 billion, aligning with analysts' expectations. In the first fiscal quarter of 2026, Dell's sales rose 5% year-over-year to $23.4 billion, surpassing analysts' estimates of $23.1 billion. However, adjusted earnings per share were $1.55, below the expected $1.69.
Dell's COO, Jeff Clarke, highlighted a surge in AI orders valued at $12.1 billion, surpassing the total AI server shipments of fiscal year 2025. Dell maintains its forecast of $15 billion in AI server sales for the year, a 50% increase from the previous fiscal year's $9.8 billion.
