DELL: Dell Stock Jumps as Traders Shake Off Earnings Miss for Highly Upbeat Guidance

Revenue came in above estimates showing that while Dell isn’t churning out fat profits, it’s still growing the business.

🤸‍♂️ Dell Shares Pop Ahead of Cash Session

• Dell stock DELL vaulted higher by as much as 5% in pre-market trading Friday not because the PC maker crushed earnings, but because it said the next quarter might.
• The tech veteran missed on the bottom line (that’s profit) but beat on the top line (that’s revenue) and came through with a surprisingly bullish forecast.

😏 Earnings Miss? That’s OK, You’re an AI Company Now

• Dell posted adjusted earnings per share of $1.55 — lighter than the $1.70 Wall Street was rooting for. But despite the EPS miss, the company’s top-line performance kept things grounded.
• Revenue clocked in at $23.4 billion, slightly ahead of the $23.2 billion consensus, showing healthy demand across the business.
• The revenue beat was driven in part by growth in Dell’s data infrastructure segment (after all, it’s AI’s world and we all live in it). That’s a key piece of its long-term strategy, especially as AI reshapes enterprise spending.

👏 Guidance Sparks Optimism

• Against this backdrop, traders were clearly willing to forgive a short-term profit miss in favor of long-term positioning. Dell didn’t hold back on guidance, and the market noticed.
• The company now sees $2.25 in EPS for the current quarter — well ahead of the $2.08 consensus. Revenue is expected to land between $28.5 billion and $29.5 billion, crushing the Street’s $25 billion forecast.
• For the full fiscal year, Dell boosted its adjusted EPS outlook to $9.40, topping the average analyst estimate of $9.33. Also, Dell said it’s sitting on a $14.4 billion AI hardware backlog — a not-so-subtle flex that demand might be there at least for the next few quarters.