Dell jumps 10% after-hours on AI beat, lifts outlook

Dell Technologies shares jumped more than 10% in after-hours trading Tuesday after the company reported adjusted earnings of $7.04 per share and quarterly revenue of $46.97 billion. Revenue rose 58% year over year and earnings exceeded analyst forecasts.

The stock had closed the regular session down 6.98% at $424.20 and traded near $469.66 shortly after the report, roughly 3% above Monday’s $456.01 close. Options expiring Friday implied about an 11% move, and the after-hours swing was close to that level.

Dell identified strong demand for artificial-intelligence hardware as the main driver of the quarter. Sales of AI-optimized servers doubled year over year to $16.4 billion. The company booked $60.9 billion in AI orders during the quarter and ended the period with a record $95 billion AI backlog, up from $51.3 billion three months earlier.

Management raised full-year targets for a second consecutive quarter, setting revenue guidance near $192 billion and adjusted earnings near $25.50 per share, up from prior views of $167 billion and $17.90. The company lifted its AI server revenue target to about $74 billion from $60 billion in May. For the third quarter, Dell flagged roughly $49 billion in revenue and about $6.50 in adjusted earnings.

Executives cited rising memory costs and noted that AI servers typically carry thinner margins than storage arrays or commercial PCs, factors that influenced earlier caution. Those supply and margin topics are expected to be addressed on the company’s scheduled 4:30 p.m. Eastern investor call, where questions will focus on converting the backlog into shipments and on memory supply.

Shares have risen sharply this year, moving from about $110 to a high near $514 in 2026 as investors priced Dell as a supplier to AI infrastructure. Tuesday’s after-hours gain recovered most of an earlier intraday decline.