Dell Technologies has reported its fastest revenue growth since returning to public markets, crushing Wall Street expectations with first-quarter earnings that sent its stock soaring 38% in extended trading.
The company reported earnings of $4.86 per share on revenue of $43.84 billion, up 88% from a year ago. Net income surged 256% to $3.44 billion. Analysts had expected just $2.94 per share on sales of $35.43 billion.
The key driver? AI servers. Revenue from AI servers jumped 757% year-over-year to $16.1 billion. Dell now expects full-year AI server revenue to top $60 billion, up from a previous forecast of $50 billion. The company ended the quarter with more than 5,000 AI server customers, including neocloud providers, sovereign clients, and large enterprises.
Dell's Infrastructure Solutions Group saw revenue rise 181% to $29 billion. The Client Solutions Group, which includes PCs, posted revenue of $14.6 billion, up 17%.
Notable shareholders include U.S. President Donald Trump, who bought Dell shares in the first quarter. Vice Chairman Jeff Clarke noted the company is repricing servers almost daily due to rising costs for memory and components.
Separately, NetApp also beat estimates, with quarterly earnings of $2.43 per share on revenue of $1.95 billion, sending its stock up 13% in late trading.