Dell Technologies Inc. reported revenue growth at its highest quarterly rate since its return to public markets over seven years ago, with both sales and profits surpassing analyst expectations. In Thursday's after-hours trading, the company's stock surged as much as 22%.

The following compares the company's performance with consensus expectations from LSEG:

Adjusted earnings per share: $4.86 (expected $2.94) Revenue: $43.84 billion (expected $35.43 billion)

The financial report shows that for the fiscal quarter ended May 1, Dell's revenue surged by nearly 88% year-over-year. Since its IPO in 2018, which occurred five years after the server manufacturer was taken private, its year-over-year growth rate had never exceeded 39%—a record set in the fiscal quarter ending this past January.

The growth was driven by the artificial intelligence business, with Dell assembling servers equipped with graphics processing units (GPUs) from companies like NVIDIA. Dell stated that AI server revenue for the quarter increased by 757% year-over-year to $16.1 billion. The company now anticipates full-year AI revenue to reach $60 billion, up from a February forecast of $50 billion, representing a 144% increase.

As of Thursday's close, Dell's stock has risen more than 150% year-to-date, while the S&P 500 index has gained approximately 10% over the same period.

A significant beneficiary of Dell's stock surge is U.S. President Donald Trump. Government ethics disclosure filings show that Trump became a shareholder in Dell during the first quarter of this year. Earlier this month, Trump publicly stated at a White House event, "Go buy Dell stock."

On Wednesday, the U.S. Department of Defense announced a five-year, $9.7 billion contract with Dell to procure Microsoft 365 office services. About five months ago, Dell CEO Michael Dell and his wife Susan Dell donated $6.25 billion to establish "Trump Accounts" for 25 million American children.

The financial report indicates that Dell's net profit for the latest fiscal quarter more than tripled year-over-year to $3.44 billion ($5.24 per share), compared to $965 million ($1.37 per share) in the same period last year. In January of this year, Dell raised product prices to address cost increases resulting from a global shortage of storage chips triggered by the AI boom.

For the second quarter of fiscal year 2027, Dell provided guidance: adjusted earnings per share of $4.80 and revenue between $44 billion and $45 billion. Analysts surveyed by LSEG had previously anticipated earnings per share of $2.98 and revenue of $34.97 billion.

Dell also raised its full-year outlook for fiscal year 2027: it expects adjusted earnings per share of $17.90 and revenue between $165 billion and $169 billion (the midpoint of the range represents a 47% year-over-year increase). Analysts had previously expected earnings per share of $13.09 and revenue of $142.5 billion.

Revenue from the Infrastructure Solutions Group, which includes servers and other data center equipment, increased by 181% year-over-year to $29 billion, significantly exceeding the StreetAccount consensus expectation of $22.4 billion. AI servers, traditional servers, and networking equipment businesses all experienced accelerated growth.

Revenue from the Client Solutions Group, which includes consumer and commercial PCs and accessories, grew by 17% year-over-year to $14.6 billion, surpassing StreetAccount's expectation of $12.8 billion. During the quarter, Dell launched new laptops and workstations for commercial customers.