Dell Technologies Stock Jumps on Raised FY26 Guidance Despite Q1 Miss

Dell Technologies (NYSE: DELL) saw its shares climb over 4% in after-hours trading Thursday after raising its full-year earnings guidance, even as Q1 earnings fell short of analyst expectations due to weaker demand linked to tariffs.

For fiscal Q1, Dell reported adjusted earnings per share (EPS) of $1.55, missing the $1.69 consensus. Revenue reached $23.38 billion, slightly above the $23.13 billion estimate. The company's Client Solutions Group, which includes desktops and laptops, posted a 5% year-over-year (YoY) revenue increase to $12.5 billion, as robust commercial demand helped offset a steep 19% drop in consumer sales.

Meanwhile, Dell’s Infrastructure Solutions Group delivered strong growth, with revenue jumping 12% YoY in Q1.

Looking ahead, the tech giant offered an upbeat Q2 forecast. It expects non-GAAP diluted EPS of $2.25 at the midpoint, up 15% YoY and ahead of Wall Street’s $2.11 estimate. Revenue guidance for Q2 ranges between $28.5 billion and $29.5 billion, with the midpoint of $29 billion surpassing consensus expectations of $25.26 billion.

For the full fiscal year 2026, Dell raised its non-GAAP diluted EPS outlook to $9.40 from $9.30 previously. It also guided revenue between $101 billion and $105 billion, with a midpoint of $103 billion. Both forecasts beat analyst expectations of $9.17 in EPS and $102.97 billion in revenue.

Despite macroeconomic headwinds and tariff-related challenges, Dell remains optimistic about continued demand across its commercial and infrastructure segments, signaling strong momentum into the second half of the year. Investors responded positively to the guidance lift, pushing shares higher after the earnings release.