Dell’s AI Server Business Surges 757%, Fueling Record Revenue Growth

Dell Technologies just posted its strongest quarterly revenue growth since returning to public markets in 2018, driven by an insatiable appetite for AI infrastructure. The company reported $43.84 billion in revenue for the quarter ending May 1, an 88% jump year-over-year and well above the $35.43 billion analysts had expected. Adjusted earnings per share came in at $4.86, nearly double the $2.94 consensus estimate.

The star of the show: Dell’s AI server revenue hit $16.1 billion, up 757% from a year ago. The company now expects full-year AI revenue of $60 billion, up from a previous forecast of $50 billion. Dell said it now serves more than 5,000 AI server customers, including cloud providers, sovereign entities, and enterprises.

Its Infrastructure Solutions Group, which includes servers and data center gear, saw revenue surge 181% to $29 billion. Traditional server sales also grew significantly, with Dell’s vice chairman Jeff Clarke noting that semiconductor companies and big tech firms are using the hardware for inference and agentic workloads.

On the PC side, the Client Solutions Group posted $14.6 billion in revenue, up 17% and ahead of StreetAccount expectations. Dell also announced new business laptops and workstations during the quarter.

For the current quarter, Dell forecasts adjusted earnings of $4.80 per share on revenue between $44 billion and $45 billion. The company raised its full-year 2027 guidance, now projecting $17.90 in adjusted earnings per share and revenue between $165 billion and $169 billion.

Shares jumped as much as 23% in after-hours trading following the announcement.