ROUND ROCK, TEXAS / Content Syndication Services / — Dell Technologies shares surged Friday after the company reported sharply higher fiscal first-quarter revenue, earnings and artificial intelligence server sales, placing the computer and infrastructure supplier among the strongest performers in a broader technology-led market advance. The stock closed at $420.91 on May 29, up 32.8%, after trading as high as $445.55 during the session.
The Round Rock, Texas-based company reported revenue of $43.84 billion for the quarter ended May 1, an 88% increase from $23.38 billion a year earlier. Net income rose to $3.44 billion from $965 million, while diluted earnings per share climbed to $5.24 from $1.37. Non-GAAP diluted earnings per share increased to $4.86 from $1.55.
Dell Technologies said operating income rose to $3.66 billion from $1.17 billion, and cash flow from operations reached $4.08 billion. The company returned $2.1 billion to shareholders during the quarter through share repurchases and dividends. Trading volume in Dell shares reached about 41.8 million shares, reflecting a sharp increase in market activity after the results were released.
AI server sales lift infrastructure results
Infrastructure Solutions Group revenue rose 181% to $29.01 billion, led by a 757% increase in AI-optimized server revenue to $16.13 billion. Traditional servers and networking revenue rose 92% to $8.54 billion, while storage revenue increased 8% to $4.33 billion. The segment generated operating income of $3.06 billion, compared with $998 million in the year-earlier quarter.
Dell Technologies reported $24.4 billion in AI orders during the quarter and recognized $16.1 billion in AI server revenue. The company raised its fiscal 2027 AI-optimized server revenue expectation to about $60 billion, up from the prior full-year forecast of roughly $50 billion issued in February. The updated target compares with $24.68 billion in AI-optimized server revenue for fiscal 2026.
Full-year outlook rises after record quarter
Client Solutions Group revenue rose 17% to $14.61 billion, supported by commercial client revenue of $13.02 billion, up 18%. Consumer revenue increased 9% to $1.59 billion. The unit reported operating income of $1.17 billion, compared with $653 million a year earlier, as personal computer revenue remained a smaller contributor than infrastructure in the quarter.
For fiscal 2027, Dell Technologies now expects revenue of $165 billion to $169 billion, with the midpoint at $167 billion, up 47% from fiscal 2026. The company forecast second-quarter revenue of $44 billion to $45 billion and non-GAAP diluted earnings per share of $4.80 at the midpoint. It also projected full-year GAAP diluted earnings per share of $17.31 at the midpoint and non-GAAP diluted earnings per share of $17.90.