Dell soars after beating expectations for Q4 sales and EPS
Here’s how the numbers looked.
Dell topped Wall Street expectations for Q4 earnings per share and sales late Thursday, while a healthy outlook for AI server sales in the current fiscal year is also helping shares climb around 12% in premarket trading on Friday.
The PC, data storage, and server maker reported:
Q4 non-GAAP diluted earnings per share of $3.89 vs. Wall Street expectations for $3.53.
Q4 sales of $33.38 billion vs. estimates for $31.70 billion.
Q1 non-GAAP EPS guidance of $2.90 at the midpoint vs. expectations of $2.34.
Q1 midpoint sales guidance of $35.2 billion vs. expectations for $28.98 billion.
Full-year sales guidance of $140.0 billion at the midpoint vs. expectations for $125.34 billion.
Full-year AI optimized servers revenue to rise 103% to $50 billion.
Last year, Dell’s ability to align its server and networking division with investor enthusiasm for all things AI helped the venerable PC brand claw out of a deep hole after the Liberation Day tariff panic hit shares — for a while.
Then starting last fall, shares stumbled again amid a surge in prices for key components Dell needs. Investors and analysts seem worried the parabolic run-up in memory chip prices, for example, may be tough for Dell to completely pass on to end consumers, thus crimping the company’s profit margins.
