May 30, 12:51 PM

Dell Reports $23.4B Q1 Revenue, Raises FY26 Outlook on $12.1B AI Orders; Netflix Price Target Rises to $1,490

Dell Technologies reported its first-quarter fiscal 2026 earnings with revenue of $23.4 billion, marking a 5% increase year-over-year, and operating income rising 21% to $1.2 billion. Net income declined 3% to $965 million, while non-GAAP earnings per share increased 17% to $1.55, though GAAP EPS remained flat at $1.37. The company highlighted exceptional demand for AI-optimized servers, recording $12.1 billion in AI server orders and a backlog of $14.4 billion. This surge in AI infrastructure contributed to a 16% increase in server and networking revenue and a 12% rise in ISG revenue. Despite modest tariff impacts and some margin pressures in its Client Solutions Group, Dell's second-quarter guidance exceeded market expectations, driven by an incremental $5 billion in revenue. Analysts from Bank of America, Raymond James, Morgan Stanley, JPMorgan, and Goldman Sachs maintained mostly positive outlooks, raising price targets and emphasizing the strength of Dell's AI business and revenue outlook. Meanwhile, Marvell Technology delivered earnings in line with expectations, showing strong AI data center growth and ongoing AI ASIC projects with major cloud providers, though its stock declined after hours. Netflix saw its price target raised multiple times, with Evercore ISI increasing it to $1,350 and Bank of America to $1,490, citing strong subscriber growth, live event engagement, and upcoming content releases as key drivers for continued outperformance.