Dell Technologies (NYSE: DELL) shares climbed more than 15% intra-day Friday after the company reported fourth-quarter earnings that topped expectations, fueled by accelerating demand for AI infrastructure.
The company posted adjusted earnings per share of $3.89, well above the consensus estimate of $3.52. Revenue rose 39% year over year to $33.4 billion, exceeding market expectations of $31.41 billion.
Growth was largely driven by the Infrastructure Solutions Group, where AI-optimized server revenue surged 342% to $9.0 billion. Dell also disclosed a record AI server backlog of $43 billion, signaling sustained demand for high-performance computing systems.
For the current year, the company expects AI server revenue to increase 103% to approximately $50 billion.
Dell forecast fiscal 2027 revenue between $138 billion and $142 billion, significantly above the $124.9 billion consensus estimate. Annual earnings per share are projected at $12.90, compared with analyst expectations of $11.49.
The company also announced a 20% increase in its cash dividend and authorized a $10 billion expansion of its share repurchase program.
