Dell Technologies Inc. stock fell after the company gave a mixed revenue outlook for the current quarter.

"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," said Dell Chief Operating Officer Jeff Clarke.

For its fiscal fourth quarter ended in January, the company reported revenue of $23.9 billion, up 7% versus the prior year, but below the Wall Street consensus of $24.6 billion, according to FactSet. Adjusted earnings came in at $2.68 per share, which is above the $2.52 analysts' consensus estimate.

Guidance was mixed. For the current quarter, Dell forecast a revenue range of $22.5 billion to $23.5 billion, which is below analysts' expectations of $23.6 billion. The company also provided a revenue range forecast for fiscal 2026 of $101 billion to $105 billion, versus the $103.4 billion consensus.

Dell shares fell 3% following the release in after-hours trading.

Dell also announced an 18% increase to its annual dividend to $2.10 per share.

Earlier this month, Morgan Stanley analyst Erik Woodring reaffirmed his Overweight rating on Dell stock, but lowered his price target to $128 from $154.

The analyst said he expected near-term mixed guidance from Dell management: "Reducing ests [estimates] ahead of earnings with a more conservative outlook on AI servers given supply chain bottlenecks."

Woodring expects stronger results from Dell's AI business later in the year as production capacity improves. "AI Server demand checks have remained unwaveringly strong," he wrote.

Dell is a leading provider of computers and servers for artificial intelligence. Coreweave, a cloud-computing company that runs on graphics-processing units, and Elon Musk's xAI both are customers of Dell hardware for their AI infrastructure buildouts.

Dell stock has gained 18% over the past 12 months.