I said they’d be worth watching and so it proved as Dell Technologies (DELL) stock surged nearly 11% pre-market on Friday after impressive Q4 results which promise an AI infrastructure bonanza. Those who tune in to the Sharesify podcast will have heard us explain why investors need more than just earnings beats to boost share prices, and Dell delivered, smashing previous fiscal 2027 (to end Jan) guidance on top of a sharp Q4 beat.
The $90 billion Texas-based company forecast fiscal 2027 revenue of $138 billion-$142 billion, well above the $124.9 billion consensus. Annual EPS is projected at $12.90, compared with analysts’ expectations of $11.49.
| Dell Technologies (DELL) | Price: $134.23 (+11%) | Market cap: $88.93bn |
Powered by what the company called a ‘rapid corporate shift toward artificial intelligence infrastructure’, Dell reported Q4 2026 adjusted EPS of $3.89, comfortably ahead of analysts’ forecasts of $3.52, on a 39% surge in revenue to $33.4 billion, beating the $31.41 billion estimate, and marking one of Dell’s strongest quarterly growth performances in years.
Corporate shift to AI infrastructure
‘The AI opportunity is transforming our company’, said Jeff Clarke, Dell’s vice chairman and COO. He noted that Dell closed more than $64 billion in AI‑server orders over the past year and shipped over $25 billion worth of systems, entering fiscal 2027 with ‘unprecedented backlog’ levels.
That’s firm evidence that Dell’s engineering capabilities and differentiated AI solutions are resonating with customers.
Source: Dell
The standout driver was the Infrastructure Solutions Group, where AI‑optimised server revenue soared 342% to $9 billion in Q4, and Dell also reported record AI server backlog worth $43 billion, underscoring persistent demand for high‑performance computing needed to support large‑scale AI model training and deployment. The company expects overall AI server revenue to climb 103% in the current fiscal year, reaching roughly $50 billion.
Large capital returns
The company also strengthened its capital return program, announcing a 20% increase in its cash dividend and a $10 billion expansion of its share buyback authorization.
However, analysts at BofA Securities cautioned that while near‑term demand remains robust, aggressive pricing changes, a result of rising memory costs, could create uncertainty around longer‑term demand elasticity. Clarke said server prices were raised on 10 December, and 6 January for PCs.
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