The stock of Dell Technologies (DELL) is up 13% after the personal computer and server maker posted financial results that blew past Wall Street forecasts.
For the fourth quarter of 2025, Dell reported earnings per share (EPS) of $3.89 U.S., which topped the $3.53 U.S. expected among analysts.
The company also announced revenue of $33.38 billion U.S., which beat the $31.67 billion U.S. forecast on Wall Street.
Management attributed the top and bottom-line beats to strong artificial intelligence (A.I.) demand for its servers that can be found in data centres and run microchips and processors.
Dell makes the servers and networking equipment that companies use to power their A.I. models and applications.
Revenue for A.I. servers totaled $8.95 billion U.S. in Q4 2025, a 342% increase from the previous year.
Total servers and networking revenue came in at $14.80 billion U.S., beating estimates of $13.90 billion U.S.
Dell’s fourth-quarter gross margin was 20.5%, slightly higher than the 20.3% Wall Street expected.
In terms of guidance, Dell said it expects first-quarter 2026 earnings of $2.90 U.S. a share at the midpoint, and revenue of $34.70 billion U.S. to $35.70 billion U.S.
The outlook surpassed Wall Street estimates of $2.34 U.S. a share in earnings and sales of $29 billion U.S.
For all of 2026, Dell expects earnings of $12.90 U.S. a share at the midpoint and revenue of $138 billion U.S. to $142 billion U.S.
That too surpassed analyst estimates of $11.45 U.S. a share in earnings and revenue of $124.70 billion U.S.
Prior to today (Feb. 27), DELL stock had risen 13% over the past 12 months to trade at $121.45 U.S. per share.
Tech Insider
