Dell Stock Jumps 10% After Hours on Blowout AI Quarter, Guide Raise

Dell Technologies stock jumped more than 10% in after-hours trading on Tuesday. The company posted adjusted earnings of $7.04 a share, well above the roughly $4.90 analysts expected.

Revenue climbed 58% from a year earlier to $46.97 billion. Shares changed hands near $469.66 shortly after the release, having closed the regular session down 6.98% at $424.20.

Why Dell Stock Sold Off Before the Beat

Sellers controlled the entire session before the numbers landed. Traders had positioned for a violent reaction in either direction.

Options expiring Friday implied an 11% move, a BeInCrypto Dell earnings options preview showed on Monday. The 10.59% after-hours swing landed close to that estimate.

Dell had also set a far lower bar for itself. Management guided in May to revenue of $44 billion to $45 billion and adjusted earnings of $4.80 a share.

Margins, rather than demand, drove the caution. Memory costs have risen this year, and AI servers earn thinner margins than storage or commercial personal computers.

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