Dell Technologies had one of the biggest earnings weeks in recent memory — and it isn’t slowing down.
The stock was trading at $429.50 in premarket Monday, up around 2-3%, after surging 33% on Friday following its fiscal Q1 FY2027 results. That was Dell’s fastest quarterly revenue growth since returning to public markets in 2018.
Revenue came in at a record $43.8 billion, up 88% year over year. Diluted EPS hit $5.24, up 282%. Non-GAAP EPS of $4.86 blew past analyst estimates of $2.93 by nearly 66%.
The headline number everyone is talking about: AI server revenue of $16.1 billion, up 757% year over year.
COO Jeff Clarke put it plainly — “We booked $24.4 billion in AI orders and recognized $16.1 billion of AI server revenue. We’re increasing our AI server revenue expectations for FY27 to $60 billion.”
Dell’s backlog for AI servers now stands at a record $51.3 billion. That’s a number that’s hard to ignore.
The earnings beat triggered a wave of analyst activity. Susquehanna made the boldest move, upgrading Dell to Positive from Neutral and raising its price target all the way to $700 from $138.
Barclays lifted its target to $550. JPMorgan raised to $500, pointing to Dell’s improved FY2027 outlook and market share gains. Mizuho kept its Outperform rating and bumped its target from $350 to $435.
CFO David Kennedy said the company raised its full-year revenue outlook to $167 billion at the midpoint — up nearly 50% year over year.
Dell also landed a $9.7 billion Pentagon contract to supply software to the U.S. military, adding another layer to what was already a very strong week.
On Sunday, Dell announced the XPS 13 laptop, priced at $699, with a discounted price of $599 for students during back-to-school season.
That puts it in direct competition with Apple’s MacBook Neo, which launched in March at $599, or $499 for students.
Dell framed it simply: “XPS 13 arrives at its most accessible price ever, contending with the MacBook Neo on price, and exceeding it on features.”
Apple stock was pointing 0.7% lower at $309.86 in premarket Monday.
The momentum at Dell had already been building before earnings. A wave of AI announcements at Dell Technologies World 2026 drove roughly a 24% rally over the prior week.
At that event, Dell revealed new AI infrastructure products and expanded partnerships with Nvidia, Google, and SpaceX AI.
Peer stocks felt the lift too. Lenovo Group rose over 10% in early trading on June 1, hitting a new all-time high, boosted by optimism around AI infrastructure companies following Dell’s results.
Computex 2026 runs June 1–5, themed around AI infrastructure, with Nvidia CEO Jensen Huang expected to keynote on June 1.
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