Dell Boosts Full-Year Outlook Despite Earnings Miss, AI Orders Shine

Dell Technologies (NYSE:DELL) delivered an optimistic outlook for fiscal 2026, lifting its full-year profit guidance even as first-quarter earnings came in below expectations. The mixed results sent shares more than 1% higher intra-day today as investors looked past the earnings shortfall and focused on strong momentum in key growth areas.

For the first quarter, Dell reported adjusted earnings of $1.55 per share on revenue of $23.38 billion. While revenue exceeded analyst expectations, earnings fell short due to demand headwinds stemming from recently implemented tariffs.

Performance across business segments was uneven. The client solutions group, which includes personal computers and laptops, saw overall revenue rise 5% year-over-year, driven by strong commercial demand. However, consumer sales within the segment dropped 19%, signaling continued pressure in the retail PC space.

On the upside, Dell’s infrastructure solutions group posted a 12% revenue increase, while AI server orders soared to $12.1 billion—surpassing forecasts—and the company ended the quarter with a $14.4 billion backlog, suggesting continued strength in enterprise tech demand.

Looking ahead, Dell expects a robust second quarter, forecasting adjusted earnings of $2.25 per share and revenue between $28.5 billion and $29.5 billion, both ahead of consensus estimates.

For the full fiscal year, the company raised its profit forecast to $9.40 per share at the midpoint and expects revenue to land around $103 billion, signaling confidence in its ability to navigate a complex economic landscape while capitalizing on growth in AI and infrastructure solutions.