Dell Technologies late Thursday missed Wall Street's earnings target for its fiscal first quarter but its sales were above views. Also, its guidance for the current quarter was well above estimates. Dell stock rose in extended trading.
The Round Rock, Texas-based company earned an adjusted $1.55 a share on sales of $23.38 billion in the quarter ended May 2. Analysts polled by FactSet had expected the computer maker to earn $1.70 a share on sales of $23.18 billion. On a year-over-year basis, Dell earnings increased 17% while sales climbed 5%.
For the current quarter, its fiscal Q2, Dell forecast adjusted earnings of $2.25 a share on sales of $29 billion. Wall Street was modeling earnings of $2.11 a share on sales of $25.33 billion. Its guidance would translate to year-over-year growth of 15% in earnings and 16% in revenue.
Dell also raised its earnings outlook for fiscal 2026. It now expects to earn an adjusted $9.40 a share, up from its target of $9.30 three months ago. Dell kept is sales target unchanged at $103 billion. Last year, Dell earned an adjusted $8.14 a share on sales of $95.6 billion.
"We achieved first-quarter record servers and networking revenue of $6.3 billion, and we're experiencing unprecedented demand for our AI-optimized servers," Chief Operating Officer Jeff Clarke said in a news release. "We generated $12.1 billion in AI orders this quarter alone, surpassing the entirety of shipments in all of FY25 and leaving us with $14.4 billion in backlog."
In after-hours trading on the stock market today, Dell stock climbed more than 2% to 116.01. During the regular session Thursday, Dell stock dipped a fraction to close at 113.63.
HP Stock Drops On Tariff Impact
Late Wednesday, industry peer HP reported earnings for its fiscal second quarter that missed views on higher-than-expected tariff costs. However, its sales were slightly above estimates.
The PC and printer maker earned an adjusted 71 cents a share, down 13% year over year, on sales of $13.2 billion, up 3%, in the quarter ended April 30.
HP's earnings outlook for the current quarter and full fiscal year also was negatively impacted by tariffs and below Wall Street's targets.
HP stock tumbled 8.3% to close at 24.95 on the news.
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