Shares of Dell Technologies (DELL +2.47%) popped on Friday after the tech giant highlighted the soaring growth of its artificial intelligence (AI)-focused businesses.
By the close of trading, Dell's stock price was up more than 21%.
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AI-powered gains
Dell's revenue rose 39% year over year to $33.4 billion in its fiscal 2026 fourth quarter, which ended on Jan. 30.
The personal computer (PC) maker is enjoying booming demand for its AI infrastructure. Sales of Dell's AI-optimized servers soared 342% to $9 billion.
NYSE: DELL
Key Data Points
"The AI opportunity is transforming our company," chief operating officer Jeff Clarke said in a press release.
All told, Dell's adjusted net income climbed 36% to $2.6 billion. Its adjusted earnings per share, boosted by stock buybacks, increased 45% to $3.89.
A bullish forecast and a dividend hike
Dell guided for full-year revenue to grow by 23% to approximately $140 billion in fiscal 2027. The company expects sales of its AI-optimized servers to more than double to $50 billion. Management also sees adjusted earnings increasing by 25% to $12.90 per share.
This optimistic outlook prompted Dell to boost its cash dividend by 20% to $2.52.
"We closed more than $64 billion in AI-optimized server orders, shipped more than $25 billion throughout the year, and are entering FY27 with a record backlog of $43 billion -- powerful proof that our engineering leadership and differentiated AI solutions are winning," Clarke said.
