Dell Technologies (NYSE: DELL) reached a record high following strong quarterly earnings driven by demand for AI infrastructure. Shares closed Friday up nearly 12% at $567.
For the quarter ended July 31, 2026, Dell reported revenue of $47 billion, up 58% year-over-year. Non-GAAP earnings per share surged 203% to $7.04.
The company's Infrastructure Solutions Group generated $31.8 billion in revenue, increasing about 89%, while AI-optimized server revenue reached $16.4 billion. Dell reported a record $60.9 billion in AI server orders for the quarter, bringing its total AI backlog to $95 billion.
Management raised its full-year outlook, projecting fiscal 2027 revenue of approximately $192 billion and non-GAAP earnings per share of around $25.50. The company expects AI server revenue to reach roughly $74 billion this year, nearly three times higher than the previous year.
Analyst Outlook
According to data from 22 analysts tracked by TipRanks, the average Dell stock price target is $597.53, implying upside of about 5.3% from current levels. Among the analysts, 15 rate the stock a "Buy," seven recommend "Hold," and none have issued a "Sell" rating.
The highest Dell stock price target stands at $735, while the lowest forecast is $500.
RBC Capital Markets initiated coverage with an Outperform rating and a $640 price target, noting that Dell is one of the biggest beneficiaries of the AI infrastructure boom. The analyst cited Dell's $95 billion server backlog and $16.4 billion in quarterly AI server sales as evidence of sustained demand.
Evercore ISI reaffirmed its Outperform rating and $575 price target on Dell, highlighting that growth is increasingly driven by both enterprise and AI-related demand. The firm also noted ongoing supply constraints as a sign of robust demand that could support revenue growth through fiscal 2028 and beyond.
