The latest financial statement from Dell is creating a stir on Wall Street, and with good reason! The tech behemoth is thriving on the AI trend, as the need for its AI infrastructure offerings causes profits to surge.
Here’s the overview: Dell’s fourth-quarter profits exceeded projections, achieving an all-time high of $2.68 per share, an increase from the previous year. Income also experienced a substantial 7% rise, totaling $23.9 billion. The true highlight? Dell’s server and networking division, which experienced a remarkable 37% increase, driven by the immense demand for both AI and conventional servers.
Speculation suggests that Dell is nearing the completion of a substantial agreement with Elon Musk’s xAI, potentially valued at over $5 billion, to provide servers utilizing Nvidia’s advanced processors. This builds upon their existing collaboration, with Dell already dedicated to furnishing hardware for xAI’s forthcoming AI supercomputer in Tennessee.
Dell’s COO, Jeff Clarke, expresses considerable optimism regarding the future, emphasizing the expansion of AI beyond cloud providers and into the enterprise and even personal computers. The company’s AI server backlog has grown to an astonishing $9 billion, thanks to agreements like the one with xAI.
Looking forward, Dell projects revenues between $101 billion and $105 billion for the fiscal year 2026, with adjusted earnings per share of $9.30.
Shareholders are undoubtedly pleased, as Dell’s stock price increased during after-hours trading. It has been a successful year for Dell, with shares already up approximately 14%.
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