Dell Technologies Projects Strong FY26 Growth With AI Server Demand

Published 1 days agoDELL

Dell Technologies Projects Strong FY26 Growth With AI Server Demand

Dell Technologies has announced its fiscal year 2026 outlook, predicting significant revenue and profit gains. For the full year, the company expects to generate revenue between $101.0 billion and $105.0 billion, which is an 8% increase compared to last year if it hits the midpoint of $103.0 billion. Dell's earnings per share are anticipated to rise by 23% to $7.85, with adjusted earnings per share forecasted to climb 14% to $9.30, according to a report from Nasdaq.

Looking at the first quarter of fiscal 2026, Dell is forecasting revenue to be in the range of $22.5 billion to $23.5 billion, representing a 3% rise from the previous year at the midpoint of $23.0 billion. However, earnings per share are expected to dip by 6% to $1.29, while adjusted earnings per share are projected to surge by 25% to $1.65. This suggests that while certain costs may impact immediate profitability, underlying performance is improving.

Dell's growth strategy is largely driven by increasing demand for its AI-optimized servers, which are powered by Nvidia's chips and essential for training large language models such as ChatGPT. Reuters highlighted that the backlog for these AI servers is approximately $9 billion. This demand, coupled with cost reduction measures, is set to enable Dell to exceed Wall Street's profit expectations. Additionally, Dell is rewarding its shareholders with an 18% increase in its annual cash dividend, signaling confidence in its future performance.

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