Why did Dell stock spike after hours today?

Shares rose about 10% after hours as Dell projected AI server revenue doubling to roughly $50 billion in FY2027, raised full-year guidance to $138–$142 billion with EPS at $12.90, and boosted capital returns with a 20% dividend hike and a new $10 billion buyback. Investors reacted to stronger earnings power and clearer AI demand.

How significant is Dell’s AI server revenue outlook?

The company targets about $50 billion in AI server revenue by FY2027, roughly double current levels. This points to multi-year demand from hyperscalers and enterprises, a larger mix of high-spec systems, and potential operating leverage as volumes scale. It is a central driver behind the improved revenue and EPS guidance and interest in Dell stock.

What did Dell change about capital returns?

Management raised the dividend by 20% and authorized a new $10 billion share buyback. The combination improves total shareholder return, supports EPS by reducing share count over time, and signals confidence in cash generation. Execution and buyback pace will be key for sustaining sentiment around Dell stock through market swings.

Is Dell stock expensive after the jump?

On trailing numbers, the P/E is about 16.3 and price-to-sales is near 0.79, both reasonable for a company guiding higher on AI. Street ratings skew Buy, and Meyka’s grade is B+ (75.3). Valuation could stretch if margins lag, but stronger AI mix and capital returns may support further re-rating.

Global Market Insights

DELL Stock Today: February 26 — AI Server Sales Seen Doubling, Shares Jump

ByHuzaifa Zahoor February 27, 2026February 27, 2026

Dell stock rallied after hours as shares of DELL jumped about 10% on a stronger AI outlook and richer capital returns. Management guided AI server revenue to roughly $50 billion in FY2027, lifted full-year revenue to $138–$142 billion, and set EPS at $12.90, both above consensus. A 20% dividend hike and a new $10 billion share buyback add support. With demand from hyperscalers and enterprise customers growing, investors are reassessing Dell stock’s earnings power for 2026 and beyond.