Dell Earnings Top Expectations as AI-Driven Demand Grows

Group 1 - Dell reported fiscal fourth-quarter adjusted earnings of $1.91 billion, or $2.68 per share, an increase from $1.66 billion, or $2.27 per share, a year earlier, exceeding analysts' expectations [2] - Revenue for the quarter was $23.9 billion, up 7% year-over-year, although it slightly missed analyst consensus [2] - The revenue growth was driven by a 37% increase in servers and networking revenue, reaching $6.6 billion, fueled by demand for AI and traditional servers [2] Group 2 - Dell is reportedly nearing a deal to sell over $5 billion worth of servers powered by Nvidia chips to Elon Musk's AI company, xAI, continuing their partnership [3] - The company has a strong outlook for AI, with a backlog of AI server orders amounting to approximately $9 billion [4] - Dell forecasts fiscal 2026 revenue between $101 billion and $105 billion, with adjusted EPS of $9.30, compared to analysts' expectations of $103.81 billion in revenue and adjusted EPS of $9.28 [4] Group 3 - Following the earnings release, Dell's shares rose by 2% in extended trading and have gained about 14% over the past year [5]