Dell has raised its annual revenue and profit forecasts after reporting a blockbuster first quarter, fueled by explosive demand for its AI-optimized servers.
The company now expects AI server revenue of roughly $60 billion for fiscal 2027, up from a prior forecast of $50 billion. Total annual revenue is projected between $165 billion and $169 billion, a sharp increase from the previous $138 billion to $142 billion.
First-quarter revenue surged 88% to $43.84 billion, well above analyst estimates. Adjusted earnings per share hit $4.86, crushing expectations of $2.94.
The results reflect massive spending by tech giants like Alphabet and Amazon, which are investing over $700 billion in AI infrastructure this year. Dell's servers, powered by Nvidia chips, are critical for running services such as ChatGPT.
Dell's infrastructure solutions group, which includes storage, software, and servers, saw revenue jump 181% to $29 billion. Its PC-focused client solutions group grew 17% to $14.61 billion.