Dell Technologies, Inc. Class C Technology (DELL.US) Q4 performance is mixed, with the prospect of strong demand for AI servers still strong.

On Friday morning Beijing time, Dell Technologies, Inc. Class C (DELL.US) announced its financial performance for the fourth quarter of the 2025 fiscal year ending on January 31st. The data shows that the company's Q4 revenue increased by 7.2% year-on-year to $23.9 billion, below market expectations; adjusted earnings per share were $2.68, beating market expectations. The infrastructure department's revenue in the fourth quarter was $11.4 billion, below market expectations of $11.8 billion. Of this, $21 billion came from AI servers, while Wall Street had expected $27.7 billion. The computer department's revenue increased by 1% to $11.9 billion, with consumer PC sales down 12% and commercial PC sales up 5% to $10 billion. In recent quarters, the long-depressed personal computer market has begun to recover. Data from industry research firm IDC shows that PC shipments rose by 1.8% in the fourth quarter of 2024. Looking ahead, Dell Technologies, Inc. Class C expects earnings per share of around $9.30 for the 2026 fiscal year ending in January 2026, excluding certain projects, with revenue between $101 billion and $105 billion. The market expects earnings per share of $9.24 and revenue of $103 billion. Demand for computing tools to run AI is driving the robust growth of high-performance server manufacturers such as Dell Technologies, Inc. Class C, Super Micro Computer, Inc. (SMCI.US) and Hewlett Packard Enterprise Co. (HPE.US). Dell Technologies, Inc. Class C's Chief Operating Officer Jeff Clarke stated in a statement that the company's backlog of orders for AI servers surged to $9 billion at the end of the fourth quarter after deals with Elon Musk's xAI and other customers. Dell Technologies, Inc. Class C expects that revenue from AI servers in the 2026 fiscal year will reach $15 billion, a growth of about 50% from the $9.8 billion in the 2025 fiscal year. Clarke said, "We are well positioned to seize growth opportunities in all areas of our business. With our expansion of AI business from large cloud service providers to enterprises, and then to personal computer edges, our prospects in AI are very strong." As of the time of writing, Dell Technologies, Inc. Class C fell 1.84% in after-hours trading, after rising 5% earlier. The stock has dropped by 6% year-to-date.