Dell reported fourth-quarter results that exceeded profit expectations but fell slightly short on revenue. The company announced a surge in AI-optimized server sales and raised its revenue and earnings outlook for the year.
Financial Performance Overview
The company posted revenue of $23.9 billion, slightly under the consensus estimate of $24.55 billion. Adjusted earnings per share (EPS) came in at $2.68, outperforming the expected $2.53.
Shares of Dell have declined by less than 5% in 2025, though the stock has more than doubled over the last two years due to increased artificial intelligence system demand, largely built on Nvidia-powered hardware.
AI Server Sales Fuel Growth
Dell disclosed that it generated approximately $10 billion in AI-optimized server revenue in its fiscal 2025 and expects this figure to climb to $15 billion in the current fiscal year. The company also reported an AI server order backlog of $4.1 billion as of January.
Looking ahead, Dell forecasts revenue of between $22.5 billion and $23.5 billion for the current quarter, below analysts’ anticipated $23.59 billion. It anticipates adjusted EPS of $1.65, slightly lower than the $1.76 predicted by experts.
Growth Projections and Stockholder Initiatives
For fiscal 2026, Dell expects revenue between $101 billion and $105 billion, aligning with market forecasts. Full-year EPS is projected at $9.30, surpassing Wall Street expectations of $9.23.
The company also announced an 18% dividend increase and authorized a $10 billion share buyback program, signaling confidence in long-term growth.
Segment-Wise Performance
Dell’s Infrastructure Solutions Group, responsible for server sales, saw a 22% growth, generating $11.35 billion. Despite this, it fell slightly short of the estimated $11.7 billion.
Meanwhile, its Client Solutions Group—which includes PC and laptop sales—reached $11.88 billion in revenue, growing by 5% year-over-year but lagging behind an estimated $11.98 billion.
Accounting Review and Adjustments
The company revealed it had identified supplier credits that were either misreported or recorded incorrectly. Dell’s investigation determined that these inaccuracies overstated costs by $200 million in fiscal 2024 and $148 million in fiscal 2025. While labeled as “not material”, the company has revised previous financial statements accordingly.
With a growing AI sector and robust market positioning, Dell remains focused on leveraging its enterprise and AI offerings to sustain momentum in 2025 and beyond.
