Dell Technologies Reports 5% Revenue Growth Driven by AI Server Demand

Dell Technologies is rapidly advancing its AI-driven business, with AI revenue expected to exceed $15 billion in 2025, highlighting the company's strategic focus on AI solutions and infrastructure. Their AI Factory offering, launched in partnership with Nvidia, now serves over 3,000 customers, delivering significant performance improvements and cost efficiencies compared to public cloud alternatives. Despite a strong Q1 2026 revenue increase of 5% to $23.4 billion and a 17% rise in earnings per share, Dell missed earnings expectations slightly, reporting $1.55 EPS against a forecast of $1.70. Growth has been particularly strong in the Infrastructure Solutions Group and Commercial segments, driven by record demand for AI-optimized servers and networking equipment, with a notable $12.1 billion in AI-related orders booked in Q1. However, challenges remain, including supply chain complexities, competitive pricing pressures, and softness in the consumer market. Dell continues to innovate with new compute, storage, and network solutions, emphasizing edge computing and AI workload optimization while managing geopolitical risks and tariff impacts in its guidance.