Dell stock soars on earnings beat as company navigates memory shortage

Dell shares soared 19% on Friday after the company beat fourth-quarter estimates and issued strong guidance, as a historic memory shortage puts pressure on prices in the sector.

Dell reported adjusted earnings of $3.89 per share, exceeding the $3.53 per share expected by analysts surveyed by LSEG. The company reported $33.38 billion in revenue for the quarter, topping a forecast of $31.73 billion.

The company estimates fiscal 2027 revenue will come in between $138 billion and $142 billion, blowing away the $124.7 billion expected by Factset.

Dell expects revenue for its artificial intelligence servers to hit $50 billion in 2027, over double the year prior.

With memory chip makers prioritizing the high-bandwidth memory needed for AI chips made by companies including Nvidia, AMD and Google, it has meant less supply for the makers of laptops and smartphones.

Dell COO Jeff Clarke told analysts on the company’s earnings call that Dell is working with memory partners “to be as flexible and as agile as possible.”