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Research Alert: Dell: Results And Guidance Blow Away Expectations On Insatiable Ai Demand

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Dell reported Q1 FY27 results that shattered expectations with revenue of $43.8B (+88% Y/Y) vs consensus $35.8B and non-GAAP EPS of $4.86 (+214% Y/Y) vs $2.96 consensus, posting record revenue, EPS, and cash from operations. ISG delivered record revenue of $29.0B (+181% Y/Y) led by AI-Optimized Servers at $16.1B (+757% Y/Y), while the company booked $24.4B in AI orders and CSG showed resilience with sales up 17% Y/Y to $14.6B. We see this as evidence of Dell's improving competitive position in AI servers and significant AI strength rather than a one-off result. Dell materially raised FY27 guidance to $167B revenue (19% above prior view) and $17.90 EPS (39% above prior view), far exceeding Street expectations of $143B and $13.13 respectively. We expect AI server revenue of $60B in FY27, up from the prior $50B view, as the company capitalizes on enterprise AI adoption and the commercial PC refresh cycle driven by AI-capable Windows 11 upgrades.

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