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(Sharecast News) - Shares in Dell Technologies jumped on Friday, after booming demand for artificial intelligence saw fourth-quarter earnings surge.
The Texas-based hardware specialist saw revenues rise 39% in the three months to 30 January, to a record $33.4bn, while diluted earnings per share rose 57% year-on-year to $3.37. Over the year, EPS came in at $8.68 on revenues of $113.5bn, up 36% and 19% respectively.
Jeff Clarke, chief operating officer, called it a "defining year in our company's history".
He continued: "The AI opportunity is transforming our company. We closed more than $64bn in AI-optimised server orders, shipped more than $25bn throughout the year and are entering the 2027 full year with a record backlog of $43bn, powerful proof that our engineering leadership and differentiated AI solutions are winning."
Looking to the current year, Dell forecast annual revenues of between $138bn and $142bn, with AI-optimised servers revenue of around $50bn, a 103% jump on the previous year.
David Kennedy, chief financial officer, said: "We have the portfolio, operating model and growing customer base to exceed our long-term growth targets in the 2027 full year, with expected revenue of $140bn at the midpoint of our range and EPS growth of 25%."
As at 1315 GMT, the New York-listed stock had put on 15% in pre-market trading.
Further fuelling the spike were plans for a $10bn share buyback and 20% hike to the cash dividend.
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