By Katherine Hamilton

Dell Technologies recorded a 39% jump in sales, driven in part by growth in its AI server business, and anticipates growth will continue into the new fiscal year.

The Round Rock, Texas, technology company said Thursday it closed $64 billion in AI-optimized server orders in the fourth quarter.

"The AI opportunity is transforming our company," Chief Operating Officer Jeff Clarke said.

Shares rose 10% to $133.40 in after-hours trading.

Overall revenue rose 39% to $33.38 billion. Analysts surveyed by FactSet forecast revenue of $31.67 billion. Dell's infrastructure solutions group segment, which includes AI servers, recorded a 73% jump in quarterly revenue.

Dell booked $34.1 billion in AI orders as demand increased from customers to scale AI, Clarke said on a call with analysts. After converting those orders, Dell's AI backlog was still $43 billion at the end of the quarter.

Demand is increasing across customer types, with Dell's current customer base surpassing 4,000, Clarke said.

Dell posted a profit of $2.26 billion, or $3.37 a share, compared with $1.53 billion, or $2.15 a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were $3.89, ahead of the $3.53 anticipated by analysts, according to FactSet.

In the new fiscal year, Dell expects revenue to be $138 billion to $142 billion and adjusted earnings to be $12.90 a share at the midpoint. Those projections are ahead of analyst estimates of $124.69 billion in annual sales and $11.45 in adjusted earnings per share.

For the current first quarter, Dell expects sales to be $34.7 billion to $35.7 billion and adjusted earnings per share to be $2.90 at the midpoint. Wall Street is guiding for $28.99 billion in sales and $2.34 a share in adjusted earnings.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

February 26, 2026 17:37 ET (22:37 GMT)

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