So, you know that whole "AI is a bubble" thing? Someone might want to tell Dell Technologies (DELL). The company's stock surged in after-hours trading Thursday, climbing nearly 11% after it reported quarterly results that didn't just beat expectations—it blew right past them. And the reason, according to Dell itself, is pretty simple: artificial intelligence.

Let's start with the numbers. For the fourth quarter, Dell reported earnings of $3.89 per share. Wall Street was looking for $3.53, so that's a beat of more than 10%. Revenue came in at $33.38 billion, which was also comfortably above the $31.73 billion analysts had forecast. For context, that revenue is up significantly from the $23.93 billion it reported in the same quarter a year ago.

But the real story here isn't just one good quarter. It's the full-year picture and, more importantly, what Dell says is coming next. The company called fiscal 2026 a "defining year," and the numbers back that up. Full-year revenue hit a record $113.5 billion, a 19% jump from the prior year. Earnings per share also hit new highs, with diluted EPS at $8.68 (up 36%) and non-GAAP diluted EPS at $10.30 (up 27%). The company also generated a record $11.2 billion in cash from operations.

All that cash is leading to some happy shareholders. The board announced it's increasing the cash dividend by 20% and adding a whopping $10 billion to its share repurchase authorization. That's the kind of move you make when you're feeling very confident about the future.

And why is Dell so confident? One word: AI.

"The AI opportunity is transforming our company," said Jeff Clarke, Dell's Chief Operating Officer. He laid out some eye-popping figures to prove it. The company closed more than $64 billion in orders for its AI-optimized servers throughout the fiscal year. It shipped more than $25 billion worth of that hardware. And as it enters the new fiscal year, it's sitting on a record backlog of $43 billion in orders waiting to be filled.

Think about that for a second. A $43 billion backlog. That's not just hope; that's contracted business. It's powerful proof, as Clarke said, that customers are betting big on Dell's technology for their AI infrastructure.

This optimism is baked directly into the company's outlook, which is where things get really interesting for investors. For the coming fiscal year (2027), Dell expects adjusted earnings per share of $12.90. The consensus estimate among analysts was just $11.59. On the top line, the company is guiding for revenue in a range of $138 billion to $142 billion. The Street was expecting about $125.54 billion.

That's not a slight beat. That's a guidance number that tells the market, "Your models are wrong, and we're going to grow much faster than you think."

The market's reaction was swift and decisive. According to market data, Dell stock climbed 10.98% to $134.79 in extended trading Thursday. When a company beats on the quarter, shows record annual results, returns a mountain of cash to shareholders, and then guides far above expectations for the year ahead, that's what happens. It seems the transformation Clarke talked about isn't just happening inside Dell—it's being reflected in its share price, too.