With $50 Billion AI Revenue in Sight, and Up 20% Today, Is Dell Stock Still a Buy?

Core Insights - Dell Technologies reported strong fourth-quarter results and record financial performance for fiscal 2026, driven by increasing demand for AI-optimized servers [1] - The company generated $113.5 billion in revenue for the full fiscal year, a 19% year-over-year increase, with earnings per share rising 27% to $10.30 [1] - Dell's adjusted free cash flow reached $11.5 billion, and it returned $7.5 billion to shareholders, including the repurchase of 54 million shares [1] Financial Performance - In fiscal 2026, Dell generated $64.1 billion in AI orders and shipped $25.2 billion, indicating strong demand and operational capacity [6] - For Q4, total revenue was $33.4 billion, reflecting a 39% year-over-year growth, while EPS increased by 45% to $3.89 [6] - The company exited the period with a record $43 billion AI backlog, showcasing durable demand for its products [7] Future Outlook - Dell sees a substantial $50 billion AI revenue opportunity, supported by a growing customer base and an expanding pipeline [2] - The company booked $34.1 billion in AI orders, signaling accelerating customer adoption and strong growth prospects [8] - Dell's AI customer base has exceeded 4,000, indicating broad-based adoption across various end markets, including neocloud providers and traditional enterprises [8] Market Reaction - Investors responded positively to Dell's results and outlook, with shares rising approximately 11.6% in pre-market trading and about 20% in morning trading following the earnings release [3]