Dell Earnings Top Expectations as AI-Driven Demand Grows | Global News Avenue

Dell (Dell) reported fourth-quarter revenue exceeding analyst expectations as PC and server manufacturers benefited from growing counterparts AI Infrastructure.

Dell’s adjusted earnings of $1.91 billion, or a record high of $2.68 per share, up from $1.66 billion, or $2.27 per share a year ago, surpassed expectations. Its $23.9 billion revenue rose 7% year-on-year, but slightly missed the analyst consensus of visible Alpha. Server and network revenue grew 37% to $6.6 billion due to AI and traditional server demand.

Earlier this month Bloomberg Dell reportedly is Close to the transaction More than $5 billion servers for sale powered by NVIDIA (NVDA) Elon Musk’s chips AI Company, xai. These companies have worked with Musk and Dell executives before Said last summer Dell will provide hardware for AI “supercomputers” and the company plans to build in Memphis, Tennessee.

“We have a strong outlook for AI because we are from the largest cloud service provider, enterprises are at the enterprise stage and extend to the edge through PCs,” he said. Chief Operating Officer Jeff Clarke said in a press release Thursday. “The deals we booked with XAI and others have left our AI server backlog as of today, our AI server backlog is about $9 billion.”

Looking ahead, Dell forecasts revenue of $100.1 billion to $100.5 billion in fiscal 2026, with adjusted earnings per share of $9.30, while analysts’ expected revenue expectations of $103.81 billion and adjusted earnings per share of $9.28.

Dell’s shares climbed 2% in Thursday’s expansion trading after the issuance. They earn about 14% of the revenue from the past year to the end of Thursday.