Dell Shares Surge 15% on AI-Driven Earnings Beat and Upbeat 2027 Forecast

Core Insights - Dell Technologies shares increased over 15% intra-day following the release of fourth-quarter earnings that exceeded expectations, driven by rising demand for AI infrastructure [1] - The company reported adjusted earnings per share of $3.89, surpassing the consensus estimate of $3.52, and revenue rose 39% year over year to $33.4 billion, exceeding market expectations of $31.41 billion [1] Group 1: Revenue and Earnings Performance - Growth was primarily driven by the Infrastructure Solutions Group, where AI-optimized server revenue surged 342% to $9.0 billion [2] - Dell disclosed a record AI server backlog of $43 billion, indicating sustained demand for high-performance computing systems [2] Group 2: Future Projections - For the current year, the company anticipates AI server revenue to increase by 103% to approximately $50 billion [2] - Dell forecasts fiscal 2027 revenue between $138 billion and $142 billion, significantly above the consensus estimate of $124.9 billion [3] - Projected annual earnings per share are $12.90, compared to analyst expectations of $11.49 [3] Group 3: Shareholder Returns - The company announced a 20% increase in its cash dividend and authorized a $10 billion expansion of its share repurchase program [3]