Dell AI server earnings for fiscal Q1 2027 blew past every metric analysts had modeled, with AI-optimized server revenue rising 757% year over year to $16.1 billion and total revenue hitting $43.84 billion, an 88% gain that topped the Street by $8.1 billion.
| Metric | Result | vs. Estimate / Prior |
|---|---|---|
| DELL Total Revenue (Q1 FY2027) | $43.84B | Beat by $8.1B; +88% YoY |
| DELL Adjusted EPS | $4.86 | Est. $2.96; +214% YoY |
| DELL AI Server Revenue | $16.1B | +757% YoY |
| DELL AI Server Backlog | $51.3B | Orders $24.4B; book-to-bill 1.5x |
| HPE Revenue (Q2 FY2026) | $10.68B | Beat by ~$900M; +40% YoY |
| SMCI Revenue (Q3 FY2026) | $10.24B | +123% YoY; missed own est. of $12.3B |
All three major AI server names, NYSE-listed Dell Technologies (DELL), Hewlett Packard Enterprise (HPE), and Nasdaq-listed Super Micro Computer (SMCI), posted double-digit stock gains after their respective reports. Dell led by a wide margin, surging 33% on its earnings day and finishing May up 101%.
Dell AI Server Earnings: The Numbers Behind the 757% Jump
The precise growth figure from Dell’s press release lands at 757% for AI-Optimized Servers, a step above the “over 700%” shorthand. Traditional Servers and Networking hit a record $8.5 billion, up 92% year over year. Storage reached a record $4.3 billion, up 8%.
Operating income came in at a record $3.1 billion, up 206% year over year. Cash flow from operations hit a record $4.1 billion for the quarter. Those are not just revenue-driven figures: they suggest Dell is capturing margin, not just volume, from the AI infrastructure buildout.
Full-year guidance was lifted by $27 billion. Dell now targets $165 billion to $169 billion in revenue for fiscal 2027, up from a prior range of $138 billion to $142 billion, according to Yahoo Finance. Adjusted EPS guidance jumped to $17.90 from a prior target of $12.90. For Q2 FY2027, Dell guided revenue of $44 billion to $45 billion and adjusted EPS of $4.80, against a consensus that had modeled $34.97 billion in revenue and $2.98 per share.
The day before the report, the Pentagon awarded Dell a five-year contract worth $9.7 billion for Microsoft 365 productivity services, per CNBC. President Trump also appeared on Dell’s shareholder register in Q1 FY2027, per filings with the U.S. Office of Government Ethics. Neither item moves the AI server thesis directly, but both add a layer of political and institutional attention to the stock.
Analyst consensus sits at $475.76, implying roughly 13% upside from current levels. The stock carries a Moderate Buy rating.
HPE Has the Widest Upside; SMCI Still Carries Risk
HPE’s fiscal Q2 2026 result on June 1 showed 40% revenue growth and a 108% jump in adjusted EPS to 79 cents, both well ahead of estimates. The company booked $1.8 billion in new AI systems orders and entered Q3 with $5.9 billion in backlog. HPE now targets adjusted EPS of $3.40 for the full year, a figure it had originally penciled in for 2028. The stock gained 19.5% on its earnings day and rose nearly 50% through May. Consensus price target sits near $65, implying close to 20% upside. Post-earnings target updates average near $69, which pushes that figure above 20%.
SMCI’s story is more complicated. Dell AI server earnings set an obvious benchmark, and Supermicro’s numbers look different in comparison. Revenue of $10.24 billion rose 123% year over year but fell sequentially from $12.7 billion in Q2 FY2026, per the company’s SEC filing. The company missed its own revenue estimate by more than $2 billion. Adjusted gross margin improved 370 basis points to 10.1%, which pleased investors enough to drive a 24.5% single-day gain, but that margin level remains thin relative to peers.
SMCI guided Q4 FY2026 revenue of $11.0 billion to $12.5 billion. The stock carries a consensus Hold rating and a price target of $39, implying about 17% downside from current levels. Shares are still down more than 50% from their early 2024 all-time high despite a roughly 68% gain in May alone.
Dell’s $51.3 billion backlog and $60 billion full-year AI server revenue target are the numbers that define the next setup. If Q2 FY2027 revenue lands inside the $44 billion to $45 billion guide, which already sits $9 billion to $10 billion above what the Street had modeled before the print, another estimate revision cycle starts. That is the catalyst to watch when Dell reports in late August.
