Dell and HP stocks each rose approximately 15% last Friday, ahead of their scheduled earnings reports later this week. The stock movements appear to be influenced by a strong earnings report from rival Lenovo, which saw a 27% revenue increase and an 84% rise in AI-related revenue. This performance from Lenovo has been interpreted as a positive indicator for the broader hardware market, including servers and PCs manufactured by Dell and HP.
Dell reported a record $43 billion backlog of AI-optimized server orders at the end of its last fiscal year, which concluded on January 30, 2026. This figure represents a substantial increase from the $18.4 billion backlog reported previously. The company's infrastructure solutions group, which includes servers and storage, saw revenue grow by 40% in the last fiscal year.
HP's PC business has reportedly returned to growth, although the company faces challenges such as thin profit margins and increasing memory costs. HP is scheduled to report its earnings on Wednesday, followed by Dell on Thursday. The recent stock price increases have set a higher benchmark for investor expectations for these upcoming reports.
