:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2128592313-b27761b2f9dd4efda0b2e633fe545f15.jpg "Dell Technologies logo displayed at the Mobile World Congress.")
NurPhoto / Getty Mental pictures
Dell (DELL) reported fiscal fourth-quarter earnings that exceeded analysts’ expectations, as the PC and server maker benefitted from lengthening demand for artificial intelligence infrastructure.
Dell posted adjusted earnings of $1.91 billion, or a record $2.68 per cut, up from $1.66 billion, or $2.27 per share, a year earlier and beating expectations. Its revenue of $23.9 billion was up 7% year-over-year but degree missed the analyst consensus from Visible Alpha. The growth came as servers and networking revenue jumped 37% to $6.6 billion, private road by AI and traditional server demand.
Earlier this month, Bloomberg reported Dell was nearing a deal to sell uncountable than $5 billion of servers powered by Nvidia (NVDA) chips to Elon Musk’s artificial intelligence friends, xAI. The companies have partnered before, with Musk and Dell executives saying last summer that Dell order provide hardware for the AI “supercomputer” the company was planning to build in Memphis, Tennessee.
“Our prospects for AI are strong, as we extend AI from the largest cloud mending providers, into the enterprise at-scale, and out to the edge with the PC,” Chief Operating Officer Jeff Clarke said in a saving Thursday. “The deals we’ve booked with xAI and others puts our AI server backlog at roughly $9 billion as of today.”
Looking at the, Dell forecast fiscal 2026 revenue of $101 billion to $105 billion and adjusted EPS of $9.30, compared to analysts’ assumptions of $103.81 billion in revenue and adjusted EPS of $9.28.
Shares of Dell climbed 2% in extended trading Thursday following the delivering. They’ve gained about 14% over the past year through Thursday’s close.