Dell Technologies Inc.'s stock surged 12.73% in after-hours trading following the release of its fourth-quarter financial results, which significantly exceeded analyst expectations. The company reported record quarterly revenue driven by explosive growth in its artificial intelligence server business.

The tech hardware maker posted adjusted earnings per share of $3.89, beating the FactSet consensus estimate of $3.53. Revenue for the quarter reached $33.38 billion, surpassing the expected $31.67 billion and marking a 39% increase year-over-year. A standout performance came from the AI-optimized servers segment, where revenue skyrocketed 342% to $8.95 billion.

Looking ahead, Dell provided robust guidance for fiscal year 2027, forecasting revenue between $138 billion and $142 billion, well above the average analyst estimate of approximately $125 billion. The company also anticipates adjusted earnings per share of $12.90 at the midpoint, exceeding estimates of around $11.45. Additionally, Dell announced a $10 billion increase to its share repurchase authorization, signaling confidence in its financial position and commitment to returning value to shareholders. The strong results and outlook are attributed to soaring demand for AI infrastructure from major technology firms.