Dell Technologies late Thursday beat estimates for earnings in its fiscal fourth quarter but sales were lighter than expected. It also missed views with its guidance for the current quarter. Dell stock fell in extended trading.
The Round Rock, Texas-based company earned an adjusted $2.68 a share on sales of $23.93 billion in the quarter ended Jan. 31. Analysts polled by FactSet had expected earnings of $2.52 a share on sales of $24.57 billion. On a year-over-year basis, Dell earnings rose 18% while sales climbed 7%.
For the current quarter, its fiscal Q1, Dell expects to earn an adjusted $1.65 a share, up 25% year over year, on sales of $23 billion, up 3%. Analysts were modeling earnings of $1.78 a share on sales of $23.63 billion.
For its full fiscal 2026, Dell forecast adjusted earnings of $9.30 a share, up 14%, on sales of $103 billion, up 8%. Wall Street had been looking for earnings of $9.26 a share on sales of 103.4 billion.
"In Q4 we grew our Infrastructure Solutions Group revenue by 22%, and we're well positioned to capture growth across every segment of our business," Chief Operating Officer Jeff Clarke said in a news release.
He added, "Our prospects for AI are strong, as we extend AI from the largest cloud service providers, into the enterprise at-scale, and out to the edge with the PC. The deals we've booked with xAI and others puts our AI server backlog at roughly $9 billion as of today."
Dell Stock Retreats After Report
In other news, Dell increased its annual cash dividend by 18% to $2.10 a share. The first quarterly distribution of 52.5 cents per share will be paid on May 2 to shareholders of record as of April 22.
Plus, Dell's board approved a $10 billion increase to its share repurchase authorization.
In after-hours trading on the stock market today, Dell stock dropped more than 2% to 105.10. During the regular session, Dell stock fell 6.8% to close at 107.83.
HP Stock Falls After Q1 Earnings Miss
Meanwhile, industry peer HP also reported quarterly results late Thursday.
Palo Alto, Calif.-based HP earned an adjusted 74 cents a share on sales of $13.5 billion in its fiscal first quarter ended Jan. 31. Analysts polled by FactSet had expected earnings of 75 cents a share on sales of $13.39 billion. On a year-over-year basis, HP earnings fell 9% while sales rose 2%.
"We are pleased with our Q1 performance, achieving revenue growth for the third straight quarter and advancing our strategy to lead the future of work," HP Chief Executive Enrique Lores said in a news release. "Our progress was fueled by a strong commercial business in Personal Systems and momentum in our key growth areas, including AI PCs."
For the current quarter, HP guided to adjusted earnings of 80 cents a share, below the consensus estimate of 86 cents. However, for the full year, it is looking to earn an adjusted $3.60 a share, vs. the consensus view of $3.57.
In after-hours trading on Thursday, HP stock sank more than 3% to 31.95.
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