Dell Technologies continues its remarkable rally after reporting blowout fiscal Q1 FY2027 earnings and unveiling its most affordable XPS laptop yet. Shares rose another 1–3% in premarket trading on Monday, adding to the massive 33% surge on Friday following the earnings release. The stock was trading around $427–$429.50.
Revenue hit a record $43.8 billion, up 88% year over year, while diluted EPS reached $5.24, beating analyst estimates by roughly 66%. The standout figure was AI server revenue of $16.1 billion, a 757% jump YoY. COO Jeff Clarke highlighted the $24.4 billion in AI orders and raised the full-year AI server revenue guidance to $60 billion. The AI server backlog now stands at a record $51.3 billion.
Analysts rushed to raise price targets: Susquehanna upgraded Dell to Positive and lifted its target from $138 to $700; Barclays raised to $550; JPMorgan to $500; Mizuho to $435. Dell also secured a $9.7 billion Pentagon software contract.
On the consumer side, the new XPS 13 laptop launched at $699 ($599 for students), directly challenging Apple’s MacBook Neo ($599, $499 for students). Dell emphasized a larger display and lighter design. Apple stock dipped ~0.7% in premarket. The XPS 13 launch and the AI server boom reinforce Dell’s momentum heading into Computex 2026, where Nvidia CEO Jensen Huang is expected to keynote.
