Dell reports record Q1 revenue, AI demand, Pentagon contract

Dell Technologies reported record-breaking financial results for its first quarter, driven by surging demand for its artificial intelligence infrastructure products. The company’s stock price reached an all-time high following the announcement.

For the quarter, Dell reported revenue of $43.84 billion, a significant increase from the same period last year. Adjusted earnings per share were $4.86. The explosive growth was primarily fueled by the company’s Infrastructure Solutions Group, which houses its server and networking business. Revenue in that segment reached $29.0 billion. Within that, AI-optimized server revenue was $16.1 billion, an increase of 757 percent compared to the previous year. The company booked $24.4 billion in AI orders during the quarter and exited the period with a record AI backlog of $51.3 billion.

The company raised its full-year revenue guidance and now expects AI server revenue for the fiscal year to reach roughly $60 billion. Dell’s traditional Client Solutions Group, which includes commercial and consumer PCs, also showed strength, with revenue of $14.6 billion, up 17 percent year-over-year.

Company executives described the environment as one with no...