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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InDell Technologies shares jumped about 30% to close at $413.90 on May 29, 2026 (up from $317.05), after fiscal Q1 2027 results that set records across the board. Total revenue rose 88% year over year to a record $43.8 billion, while AI-optimized server revenue exploded 757% to $16.1 billion on strong demand for AI infrastructure. Dell also raised its full-year revenue outlook to roughly $167 billion at the midpoint, up nearly 50% year over year.
Results beat analyst estimates by a wide margin: non-GAAP EPS came in at $4.86 (+214%) versus expectations near $2.88, and GAAP diluted EPS reached $5.24 (+282%). The momentum extended beyond AI, with traditional servers and networking up 92% and Infrastructure Solutions Group (ISG) revenue jumping 181% to $29 billion. An AI-server backlog of roughly $51 billion points to sustained capital spending across the sector.
The one watch-item for analysts was gross margin, which compressed to 17.7% (from about 21% a year earlier) as lower-margin AI servers grew as a share of the mix, alongside elevated component costs including Nvidia GPUs. Even so, the market rewarded the growth with a roughly 30% rally that left the stock trading near record highs. Traders will watch whether the momentum — and the margin trajectory — holds in the quarters ahead.
Update: The positive momentum from Dell's results extended across the broader server manufacturing sector, as the 30% price surge triggered collective gains for market peers. This movement reflects growing investor confidence that the massive demand for AI infrastructure is not limited to a single company, but represents a growth wave lifting all data center solution providers.