Dell soars! Full-year guidance raised above expectations, AI server sales remain strong

Dell has significantly raised its full-year sales forecast to $192 billion, surpassing analysts' predictions. AI server sales are expected to reach $74 billion, three times last fiscal year's amount, reflecting a surge in market demand for AI servers. Operating expenses as a percentage of sales have dropped to 8%, a historic low. Expected earnings per share are $25.50, far exceeding the market average forecast of $19.10. The stock jumped 9% after hours, and has more than doubled so far this year.

Author, Source: Wallstreet News

Dell significantly raises annual sales forecast by $25 billion; AI server sales expected to reach $74 billion

Dell has raised its annual sales forecast by $25 billion, exceeding analysts’ expectations. This further highlights the surging demand for servers needed to run artificial intelligence (AI) tasks.

The Texas-based company said in a statement on Tuesday that revenue for the fiscal year ending January 2027 is expected to be around $192 billion, with AI server sales reaching $74 billion. This forecast far exceeds the approximately $167 billion Dell gave in May, as well as the analysts’ average estimate of $173.8 billion.

The AI server sales forecast is three times last fiscal year’s figure. This marks the fifth consecutive quarter that Dell’s fiscal revenue forecast has exceeded market expectations.

Dell’s shares surged 9% after hours. Although the price has fallen 14% since the August 13 peak, it has still more than doubled so far this year.

Against the backdrop of explosive AI demand, Dell has not only secured server orders equipped with Nvidia AI chips, but traditional server orders have also performed strongly. The CPUs these devices contain have regained growth momentum due to their crucial role in managing AI agents and related tasks.

Meanwhile, Dell is making efforts to strictly control expenditures, including measures such as raising PC prices to cope with soaring memory chip costs. The company stated that its operating expenses are only 8% of sales, the lowest in Dell's history.

After removing certain costs, the company expects earnings per share this fiscal year to be $25.50, while the market average forecast is $19.10.