Dell Technologies reported its first-quarter earnings, revealing a mixed performance that led to a significant drop in its stock price. Despite beating earnings and revenue estimates, with first-quarter revenue reaching $22.2 billion, up 6% year over year, and record servers and networking revenue of $5.5 billion, up 42%, the company's shares plummeted. Dell's stock fell 12% in after-hours trading and continued to decline, reaching a 20% drop, marking its worst day since 2018. The decline was attributed to concerns over margins and a weaker-than-expected profit forecast. Dell's guidance for the second quarter projected revenue between $23.5 billion and $24.5 billion and EPS of $1.65, both below analyst expectations. The company's focus on AI-optimized servers showed growth, with orders increasing to $2.6 billion, but these servers are sold at near-zero margins, contributing to investor concerns. Additionally, Dell's full-year revenue guidance of $93.5 billion to $97.5 billion and EPS of $7.65 also fell short of market expectations. The company's EPS for the first quarter was $1.29, down 1.5% year-over-year, while revenue increased by 3.5% year-over-year. Furthermore, Dell's gross margin declined by approximately 150 basis points year-over-year.