EL7.AI
StocksMediumUpdated×4•Originally published 29 May 2026•Updated 29 May 2026•
2 min read

Dell Jumps 30% as AI Server Revenue Rockets 757% to a Record $16.1 Billion

Key Facts

1Total revenue hit a record $43.8B, up 88% YoY, with non-GAAP EPS of $4.86 (+214%).
2AI-optimized server revenue surged 757% to $16.1B; ISG revenue rose 181% to $29B.
3Dell closed at $413.90 on May 29, 2026, up about 30.5% (from $317.05) after the results.
4Gross margin compressed to 17.7% (from ~21% a year ago) on the mix shift to lower-margin AI servers.

Dell 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.

Latest Updates · 1

  1. Notable·

    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.