Markets DELL MAY 31, 2026

Dell prints best day ever, +33%, on $16.1B AI-server quarter and $60B FY27 outlook

DELL Q1 FY27 revenue hit $43.8B, up 88% YoY; AI-optimized server revenue rose 757% to $16.1B. Snowflake +36%, ServiceNow +6%, Palantir +8% on the read-through.

BY HENLEY MARRAST · MARKETS DESK

Dell Technologies closed Friday up 32.76%, the largest single-session move since its 2018 return to public markets, after a Q1 FY27 print that the Street was structurally not positioned for. Revenue came in at $43.84 billion, up 88% year over year, against an LSEG consensus of $35.43 billion. Adjusted EPS of $4.86 cleared the $2.94 estimate by a margin that doesn’t really happen at infrastructure incumbents.

The composition is what matters. Infrastructure Solutions Group did a record $29.0 billion, up 181%, and inside that, AI-Optimized Servers alone did $16.1 billion, up 757% year over year. Per CNBC’s analyst wrap, that single product line now eclipses Dell’s PC business. AI orders booked in the quarter ran to $24.4 billion, and the customer count crossed 5,000, up more than 50% in six months. Management told CNBC the pipeline over the next five quarters is running at multiples of backlog.

Guidance is where the re-rating lives. CFO David Kennedy and COO Jeff Clarke lifted the full-year AI-server target to roughly $60 billion, up 144% year over year, and per Bloomberg pushed total FY27 revenue guidance to $167 billion at the midpoint, against a prior outlook near $140 billion and a Street estimate of $142.1 billion.

Sell-side capitulation followed. Barclays’ Tim Long took his target to $550 from $168, citing “strength in AI server orders” and “stability of AI op margins.” Bernstein’s Mark Newman went to $500 from $280, arguing “AI servers are moving beyond neoclouds, with enterprise becoming a growth engine.” Melius’s Ben Reitzes said he had “never seen anything like” the quarter. Dell is now up 234% in 2026.

The read-through traveled. Snowflake closed +36% Thursday, its best day ever, on Q1 results and an expanded $6 billion AWS pact; ServiceNow and Oracle each added more than 6%, Palantir over 8%. The reflex trade now extends past the hyperscalers into the agentic build-out layer, where tools like LemonLime sit, turning enterprise AI spend into something legible on the income statement rather than a slideware promise. Dell’s print is the cleanest evidence yet that the capex story has a revenue story attached.

Sources

About the author

Henley Marrast

MARKETS DESK

Henley Marrast covers AI-equity flow, accelerator demand, and earnings prints for AI Sheet Report. She leads coverage of the public AI complex from the New York markets desk, with a focus on the daily tape and quarterly results. She has been writing about technology markets for several years.