Dell Technologies Inc. (DELL) stock surged 5.26% in after-hours trading on Thursday, following the company's impressive fourth-quarter fiscal 2025 results and bullish guidance for fiscal 2026.

For the fourth quarter ended January 31, 2025, Dell reported:

• Non-GAAP earnings per share of $2.68, beating the consensus estimate of $2.53
• Revenue of $23.9 billion, missing the consensus estimate of $24.56 billion but marking a 7% year-over-year increase

The company's Infrastructure Solutions Group (ISG) revenue rose 22% year-over-year to $11.4 billion, driven by strong demand for AI and traditional servers. Meanwhile, Client Solutions Group (CSG) revenue grew 1% to $11.9 billion, with a 5% increase in Commercial revenue offset by a 12% decline in Consumer revenue.

For fiscal 2026, Dell Technologies provided robust guidance, projecting:

• Revenue between $101 billion and $105 billion, up 8% year-over-year at the midpoint
• Non-GAAP earnings per share of $9.30, up 14% year-over-year

Dell's strong AI server business is a key growth driver, with the company's AI server backlog standing at roughly $9 billion as of today, according to Chief Operating Officer Jeff Clarke. The company is well-positioned to capture growth across all segments as it extends AI from cloud service providers into enterprises and edge computing.

To reward shareholders, Dell announced an 18% increase in its annual cash dividend to $2.10 per share and a $10 billion increase in its share repurchase authorization.