By Katherine Hamilton

Dell Technologies raised its outlook for the year after first-quarter sales climbed 88% on demand for artificial intelligence products.

The Round Rock, Texas, technology company said Thursday it now expects full-year revenue to be $165 billion to $169 billion, up from a prior range of $138 billion and $142 billion.

Dell is seeing more demand for traditional servers, where revenue nearly doubled in the first quarter. The demand is driven by large enterprise companies that are refreshing their computing environments and expanding capacity to support bigger workloads, said Chief Operating Officer Jeff Clarke.

"Customers are not just buying components, they are looking for integrated solutions they can put into production quickly on infrastructure they control," Clarke said.

The company also lifted its adjusted earnings per-share guidance to $17.90 at the midpoint, from $12.90.

Shares jumped 17% to $370 in after-hours trading Thursday. Through the close, the stock had nearly tripled this year.

Many customers are concerned about rising memory prices, and are making infrastructure purchases to secure memory capacity now, Clarke said. Demand for memory continues to exceed supply, which is driving a strong backlog for Dell, he said.

"For many large customers, ensuring compute availability to modernize and grow remains their highest priority," he said.

Dell posted a profit of $3.44 billion, or $5.24 a share, in the quarter ended in early May, compared with $965 million, or $1.37 a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were $4.86, ahead of the $2.96 anticipated by analysts, according to FactSet.

Revenue jumped 88% to $43.84 billion. Analysts surveyed by FactSet forecast revenue of $35.74 billion. Sales were boosted by infrastructure solutions group revenue, which nearly tripled to $29 billion.

In the current second quarter, Dell expects revenue to be $44 billion to $45 billion, with adjusted earnings of $4.80 a share at the midpoint. Analysts expect $35.1 billion in sales and $2.99 a share in adjusted earnings, per FactSet.

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

(END) Dow Jones Newswires

May 28, 2026 17:05 ET (21:05 GMT)

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