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(Sharecast News) - Dell Technologies posted its strongest revenue growth since returning to public markets on Thursday, comfortably beating Wall Street expectations and sending shares as much as 39% higher in extended trading.
Adjusted earnings came in at $4.86 per share, well ahead of the $2.94 consensus, while revenue jumped 88% yearonyear to $43.84bn, smashing forecasts of $35.43bn, with the surge driven by booming demand for artificialintelligence infrastructure, with AI server revenue rising 757% to $16.1bn. Dell now expects fullyear AI revenue of around $60bn, up from previous guidance of $50bn.
Dell's Client Solutions Group, which includes PCs and accessories, delivered a 17% rise in revenue to $14.6bn, also ahead of expectations, while overall net income more than tripled to $3.44bn from $965m a year earlier, helped in part by price increases introduced in January amid a global memory shortage.
Looking ahead, Dell guided for secondquarter adjusted earnings of $4.80 per share on revenue of $44bn to $45bn, well above analyst estimates, and also raised its FY27 outlook, projecting adjusted earnings of $17.90 per share and revenues of $165bn to $169bn - though it did warn of supply constraints later in the year across memory, processors and other components.
As of 1055 BST, Dell shares were up 38.78% higher at $440 each.
Reporting by Iain Gilbert at Sharecast.com
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