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May 30, 2025 Dell Technologies has raised its annual profit forecast. Record-breaking demand for artificial intelligence (AI)-optimized servers has fueled the rise.
Dell now projects an adjusted profit of $9.40 per share for the fiscal year 2026, an increase from the prior forecast of $9.30. This revised estimate follows Dell’s announcement of a record $12.1 billion in AI server orders for the first quarter, which exceeds the total AI-related orders for the entire previous fiscal year.
In an announcement, Dell revealed that its AI server backlog has increased by $14.4 billion, and it is planning to move seven billion dollars’ worth of AI infrastructure during the current quarter, which is more than double the previous record for quarterly sales.
Despite some margin pressures resulting from increasing production costs and increased competition, Dell’s Infrastructure Solutions Group recorded an annual increase in revenue, while computer sales were up five percent, further improving Dell’s financial results.
In the wake of this announcement, Dell stock prices surged 5.6 percent during trading after hours, a sign of confidence from investors in Dell’s emphasis on AI.
Dell’s management attributed the success as a result of “unprecedented demand” for AI-powered solutions in cloud and enterprise markets. This trend is expected to continue as companies become more accustomed to AI technologies.
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