Dell Technologies Inc. DELL reported a mixed first quarter, driven by what executives described as “exceptionally strong demand” for its AI-optimized servers.
What Happened: The company reported $12.1 billion in AI server orders in the first quarter of the fiscal year 2026, surpassing the entirety of shipments for all of fiscal year 2025, and pushing its backlog to a record $14.4 billion.
Vice Chairman and COO Jeff Clarke noted that just 91 days into the year, Dell had already secured $12.1 billion in AI server orders, a figure that significantly contributed to the burgeoning $14.4 billion backlog.
Looking ahead, Dell anticipates shipping approximately $7 billion of that backlog in the second quarter. Clarke emphasized the company’s focus on actively converting its extensive “five-quarter pipeline” into new orders throughout the second quarter and the latter half of the year.
He projected a strong performance, stating that their “best outlook” suggests they will be in the “$15 billion plus” range for shipped AI server revenue for the full fiscal year.
Why It Matters: Its first-quarter revenue of $23.38 billion beat the consensus estimate of $23.14 billion. Whereas, adjusted earnings of $1.55 per share missed analyst estimates of $1.69 per share.
The company’s revenue growth was fueled by robust performance across all core markets, with both the Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) growing by 8%.
Dell also generated a record $2.8 billion in cash flow from operations for the first quarter and returned a substantial $2.4 billion to shareholders through stock repurchases and dividends.
The second-quarter revenue is expected to range from $28.5 billion to $29.5 billion, whereas the expected EPS stands at $2.25. The fiscal 2026 revenue is expected to be between $101 billion to $105 billion with a full-year EPS of $9.40.
Dell shares fell 0.12% on Thursday and rose 1.87% in after-hours. The stock was down 2.49% in 2025 and 33.13% over the whole year.
Benzinga Edge Stock Rankings shows that Dell had a stronger price trend over the short, medium, and long term. Its momentum ranking was poor, and its value ranking was moderate at the 36.14th percentile. The details of other metrics are available here.
The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, rose on Thursday. The SPY was up 0.39% to $590.05, while the QQQ advanced 0.20% to $519.93, according to Benzinga Pro data.
On Friday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were trading lower.
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