Dell Reports ‘Unprecedented Demand’ for AI Servers Powers Revenue Growth

Dell (DELL) reported fiscal first-quarter revenue that topped analysts’ expectations, driven by growth in artificial intelligence server sales.

The Nvidia (NVDA) partner’s quarterly revenue grew 5% year-over-year to $23.38 billion, above the analyst consensus from Visible Alpha. Servers and networking revenue jumped 16% to a record $6.3 billion, driven by what Chief Operating Officer Jeff Clarke called “unprecedented demand for our AI-optimized servers.” The company generated $12.1 billion in AI orders in the first quarter, more than it delivered in the entirety of the past fiscal year.

While adjusted net income of $1.09 billion, or $1.55 per share, rose from $959 million, or $1.32 per share, in the year-ago quarter, the figures came up short of Wall Street estimates.

Looking ahead, Dell maintained its fiscal 2026 revenue forecast of $101 billion to $105 billion and lifted its adjusted EPS projection to $9.40 from $9.30 at the midpoint. Analysts had called for $102.07 billion in revenue and adjusted EPS of $8.95, respectively.

Morgan Stanley analysts last week said Dell’s AI segment is “gaining momentum,” and suggested the company could see nearly $20 billion in AI server revenue this year.  

Shares of Dell rose about 2% in after-hours trading. The stock was down roughly 1% for 2025 through Thursday’s close.

This article has been updated since it was first published to reflect more recent share price values.