Quick Read
- Dell Technologies Inc. shares surged over 9% in after-hours trading on February 26, 2026.
- The surge followed record fourth-quarter earnings, driven by strong demand for AI-optimized servers.
- Q4 revenue reached $31.8 billion (up 32% YoY); non-GAAP diluted EPS was $3.53 (up 32%).
- Infrastructure Solutions Group revenue increased by 66% to $18.82 billion, with server and networking revenue more than doubling.
- Dell’s AI server backlog expanded to $22 billion, with a full-year FY27 revenue forecast of $138-$142 billion.
NEW YORK (Azat TV) – Dell Technologies Inc. (NASDAQ:DELL) shares experienced a significant surge of more than 9% in after-hours trading on Thursday, February 26, 2026, following the release of a blockbuster fourth-quarter earnings report. This impressive performance was largely driven by an escalating demand for the company’s AI-optimized servers, indicating a pivotal shift in its market focus and financial trajectory.
For the fourth quarter, which concluded on February 1, Dell Technologies reported a robust revenue of $31.8 billion, marking a substantial 32% increase year-over-year. Non-GAAP diluted earnings per share (EPS) also climbed by 32% to $3.53. The company’s Infrastructure Solutions Group, responsible for server and networking operations, emerged as a key growth driver, posting revenue of $18.82 billion—a remarkable 66% rise from the previous year. Within this segment, server and networking revenue more than doubled, soaring by 112%, directly attributed to the strong demand for AI servers.
Dell further highlighted its expanding footprint in the artificial intelligence sector, with its AI server backlog swelling to an impressive $22 billion. The company also reported a record fourth-quarter revenue of $33.4 billion, with GAAP EPS reaching $3.37, a 57% increase year-over-year, and non-GAAP EPS at $3.89, up 45%. Cash flow from operations also hit a record high of $4.7 billion, underscoring the company’s strong financial health and operational efficiency.
Dell’s AI Server Backlog Signals Future Growth
The burgeoning demand for AI-optimized solutions has positioned Dell Technologies for sustained growth. The company revealed that its AI server backlog has reached $22 billion, a clear indicator of future revenue streams. This strong pipeline reflects Dell’s strategic investments in advanced technology and its ability to capitalize on the rapidly expanding AI market. The significant increase in server and networking revenue, which more than doubled year-over-year, underscores the immediate impact of AI demand on the company’s core business segments.
Full-Year Performance and FY27 Forecast
Reflecting on the fiscal year 2026, Jeff Clarke, vice chairman and chief operating officer at Dell Technologies, stated that it was a “defining year” for the company. Dell achieved record full-year revenue of $113.5 billion, alongside record EPS and cash generation. Clarke emphasized the transformative impact of the AI opportunity, noting that Dell closed more than $64 billion in AI-optimized server orders and shipped over $25 billion throughout the year. The company is entering fiscal year 2027 with a record backlog of $43 billion for AI servers, which Clarke described as “powerful proof that our engineering leadership and differentiated AI solutions are winning.”
Looking ahead, Dell Technologies provided an optimistic forecast for the full fiscal year 2027, projecting revenue between $138 billion and $142 billion, which implies a 23% growth at the midpoint. For the first quarter of FY27, GAAP EPS is expected to reach $2.55, an 86% increase year-over-year, while non-GAAP EPS is anticipated to be $2.90, up 87%. These projections highlight the company’s confidence in its continued momentum, particularly within the AI hardware market.
Competitive Landscape and Dell’s Strategic Position
Dell’s robust performance places it in a strong competitive position within the technology industry, particularly as the demand for artificial intelligence infrastructure intensifies. The company’s focus on AI-optimized servers allows it to meet the specialized needs of enterprises investing heavily in AI capabilities, from data centers to advanced computing. This strategic alignment with a high-growth sector is critical as the broader tech landscape continues to evolve, emphasizing performance, efficiency, and specialized hardware for AI workloads. Dell’s ability to convert AI server orders into a substantial backlog demonstrates its operational capacity and market leadership in this crucial domain.
Dell Technologies’ latest financial results underscore the significant impact of artificial intelligence on the enterprise hardware market, with the company effectively leveraging the surge in demand for AI-optimized servers to drive record revenue and earnings. This performance not only boosts investor confidence but also solidifies Dell’s strategic direction, positioning it as a key beneficiary of the ongoing AI revolution in the technology sector.