By Angela Palumbo

Dell Technologies reported better-than-expected financial results on Thursday, sending the stock climbing in after-hours trading.

The PC and server maker reported adjusted earnings for the fiscal first-quarter of $4.86 per share on revenue of $43.8 billion. That easily beat analyst estimates of $2.96 per share on revenue of $35.7 billion.

Shares jumped 13% on the news.

This is breaking news. Please come back for more updates and analysis and read below for a preview of the earnings.

Dell Technologies stock was on the rise Thursday ahead of earnings after the Department of War announced a new multi-billion dollar contract with the computer and server maker.

The Department of War said in a news release on Wednesday night that it has agreed to give Dell a five-year, approximately $9.69 billion award.

According to the DOW, this agreement is meant to streamline and consolidate software acquisition across the department, as well as the Intelligence Community and the Coast Guard. The agreement will enable customers to procure Microsoft software licenses, cloud subscriptions, and software assurance.

This deal adds to the ongoing relationship Dell has with the federal government. In December, CEO Michael Dell pledged $6.25 billion to fund children's savings accounts, or " Trump accounts."

Shares of Dell were up 4.6% to $319.40 on Thursday and were on pace to close at an all-time high. Dell stock has closed at 15 record highs this year. The first 2026 record close was on March 25.

"At $9.7B over five years, this contract should be material to DELL's annual revenue," Evercore ISI analyst Amit Daryanani wrote in a note Wednesday night. He added that he thinks this deal is a positive for the company as it "provides DELL with diversity of growth beyond AI and enterprise."

Dell stock has been on a tear -- rising 152% this year -- as investors buy up shares of the tech hardware company as it continues to benefit from the rising demand for its artificial intelligence servers and networking equipment. Earnings after the market closes on Thursday will give investors more insight into how strong that demand continues to be, and how the new government contract could benefit guidance.

Analysts surveyed by FactSet expect Dell to report fiscal first-quarter adjusted earnings of $2.96 per share on revenue of $35.7 billion. That would be a jump from earnings of $1.55 per share on revenue of $23.4 billion Dell posted in the same period last year.

Wall Street will also be looking at the company's gross margins as Dell tackles the surging cost of memory due to ongoing supply shortages. Dell, along with other tech hardware companies, has raised prices to offset these cost headwinds.

Write to Angela Palumbo at angela.palumbo@dowjones.com

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May 28, 2026 16:14 ET (20:14 GMT)

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