Dell posted record annual revenue of $113.5 billion for the fiscal year ending January 30, a 19% increase driven largely by soaring demand for AI infrastructure.
Its Infrastructure Solutions Group, which sells servers and storage systems, saw revenue jump 40% over the year. The company expects AI-optimized server sales to rise 103% in the current fiscal year, generating around $50 billion, and projects server revenue could double again by 2027.
Dell also reported $64 billion in AI server orders, shipped $25 billion worth during the year, and entered the next fiscal year with a record $43 billion backlog.
Investors reacted positively, sending shares up more than 10% in premarket trading. Strong results from companies like Nvidia and Meta have similarly reinforced confidence that AI-driven demand remains robust.
However, Dell’s traditional PC business has grown more modestly. Revenue in its Client Solutions Group rose 5% this year, compared to a 1% decline previously. Meanwhile, the company has implemented broad operational changes, including workforce reductions, pricing increases due to component shortages, and a major overhaul of internal systems aimed at preparing for an AI-focused future.