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Investing.com -- Dell Technologies shares rose in premarket trading after the tech lifted full-year earnings guidance despite reporting mixed Q1 results as earnings missed estimates on a tariffs-related hit to demand.
Dell Technologies Inc (NYSE:DELL) advanced nearly 2% in premarket trading Friday on the report.
For Q1, the company reported adjusted earnings per share of $1.55 on revenue of $23.38 billion, compared with estimates for $1.69 per share and $23.13B, respectively.
The company’s client solutions group, which includes PCs and laptops, saw revenue rise 5% to $12.5B year-on-year in Q1 as commercial client revenue helped offset a 19% slump in consumer revenue.
Dell reported AI server orders of $12.1 billion, well above expectations. Ending backlog of $14.4 billion also came ahead.
The infrastructure solutions group saw revenue jump 12% YoY in Q1.
"Dell reported a mixed F1Q, but the highlight was AI orders of $12.1B, more than all AI revenues last FY," Barclays (LON:BARC) analysts said.
They said the company "continues to perform well in AI servers, but orders are translating to revenues at an uneven pace, at least in the near term with Blackwell transition and rack scale push-out."
For Q2, non-GAAP diluted EPS was expected to be $2.25 at the midpoint, up 15%, beating estimates of $2.11, while revenue was guided between $28.5B and $29.5B, or $29.0B at the midpoint, topping estimates of $25.26B.
Looking ahead to the full-year FY26, the company lifted its non-GAAP diluted EPS guidance to $9.40 from $9.30 previously, at the midpoint on revenue between $101.0B and $105.0B, or $103.0 billion at the midpoint, beating consensus for EPS of $9.17 and revenue of $102.97B.
"At the highest level, we see the potential for Dell to deliver significantly higher AI server revenues over the next two years (>$30bn) with strong upside to EPS (>$3)," Bank of America analysts commented in a post-earnings note, lifting their Dell price target to $155 from $150.
(Yasin Ebrahim contributed to this report.)