Morgan Stanley flags unexpected Dell stock update after earnings

Morgan Stanley conscionable had that infinitesimal with Dell Technologies (DELL).

"We got this 1 wrong," the steadfast wrote successful a enactment shared with TheStreet, pursuing Dell's first-quarter fiscal 2027 earnings. The rubric said everything: "F1Q27 Earnings — An Incredibly Impressive Quarter; Eating Our Humble Pie."

Dell's banal surged 32.76% connected May 29, the time aft the report, closing astatine $420.91, according to Yahoo Finance. The banal is up 236.88% year-to-date. Morgan Stanley had been carrying an Underweight standing and a $170 terms target, according to TheStreet’s erstwhile Dell report.

Both are present officially nether review. And the expert who missed this — Erik Woodring — had the intelligence honesty to accidental truthful directly.

What Dell delivered was not conscionable a beat. It was a 4th that Morgan Stanley described arsenic 1 of the astir awesome it has seen successful its full clip covering hardware.

Also read: Latest DELL News

Dell's F1Q27 results and the numbers that made Wall Street recalibrate everything

The first-quarter fiscal 2027 results from Dell's May 28 net merchandise were, successful respective cases, records the institution had ne'er antecedently approached:

• Record gross of $43.8 billion, up 88% twelvemonth implicit year

• Record diluted EPS of $5.24, up 282% twelvemonth implicit year

• Record non-GAAP diluted EPS of $4.86, up 214%

• Record Q1 currency travel from operations of $4.1 billion

• Infrastructure Solutions Group gross of $29.0 billion, up 181% twelvemonth implicit year

• Traditional Servers gross of $8.5 billion, up 92% twelvemonth implicit twelvemonth — a record

• Storage gross of $4.3 cardinal successful Q1, up 8% twelvemonth implicit twelvemonth — a grounds quarterly figure

• $24.4 cardinal successful Artificial Intelligence (AI) orders booked successful the quarter

• AI-Optimized Servers gross of $16.1 billion, up 757% twelvemonth implicit year
  Source: Dell Technologies First Quarter Fiscal 2027 Results

"We booked $24.4 cardinal successful AI orders and recognized $16.1 cardinal of AI server revenue," said Jeff Clarke, Dell's vice president and main operating officer.

"We're expanding our AI server gross expectations for FY27 to $60 billion, which lone goes to amusement the AI accidental shows nary signs of slowing," Jeff Clarke added.

Related: Dell blockbuster orders trigger Palantir banal surge

Full-year fiscal 2027 guidance was raised to a midpoint of $167 cardinal successful revenue. That was up astir 50% twelvemonth implicit twelvemonth from the anterior guidance of $140 billion.

Full-year non-GAAP EPS guidance was lifted to $17.90, from $12.90 previously, according to the net release.