Dell delivers blowout Q4, outlook on AI infrastructure boom

Dell Technologies delivered blowout fourth quarter results and raised its outlook on strong AI infrastructure demand.

The company reported fourth quarter earnings of $3.37 a share on revenue of $33.4 billion, up 39% from a year ago. Non-GAAP earnings for the fourth quarter were $3.89 a share.

Dell Technologies beat non-GAAP Wall Street estimates by 38 cents a share and revenue was above expectations by $1.75 billion.

For fiscal 2026, Dell Technologies delivered earnings of $8.68 a share on revenue of $113.5 billion, up 19% from a year ago. Cash flow from operations for the year was $11.2 billion.

Chief Operating Officer Jeff Clarke said the company "closed more than $64 billion in AI-optimized server orders, shipped more than $25 billion throughout the year, and are entering FY27 with record backlog of $43 billion."

Dell's infrastructure solutions group boomed in the fourth quarter with revenue of $19.6 billion, up 73% from a year ago, and operating income of $2.9 billion. AI optimized server revenue in the fourth quarter was $9 billion, up 342% from a year ago. The AI halo is also driving sales of traditional servers and storage, which saw revenue growth of 27% in the quarter.

The PC unit delivered revenue of $13.5 billion, up 14% from a year ago. Commercial revenue was up 16% and consumer revenue was flat.

Clarke said the following in prepared remarks:

• "Our customer base surpassed 4,000 with growth across neoclouds, sovereigns, and enterprise customers — evidence that demand is broadening across all customer types."
• "Traditional x86 is benefiting from AI infrastructure build outs. While many AI workloads rely on specialized GPUs, traditional compute remains essential for orchestration, data preprocessing, and inference support. And as customers deploy AI, they’re modernizing broader AI estates, refreshing and expanding general-purpose environments."
• "Across the industry, the environment remains highly dynamic, with unprecedented AI demand creating sustained supply tightness and frequent pricing resets. In Q4, we did what we said we would do: shorter quote validity periods, more dynamic pricing, and a tighter alignment between our supply chain, sales, and prices."

As for the outlook, Dell said fiscal 2027 revenue will be about $140 billion, up 23%, with non-GAAP earnings growth of 25%. Dell projected the following:

• Fiscal 2027 revenue between $138 billion and $142 billion, up 23%.
• Annual AI-Optimized server revenue will be $50 billion in fiscal 2027.
• First quarter revenue will be between $34.7 billion and $35.7 billion, up 51% from a year ago, with non-GAAP earnings of $2.90 a share.