{"id":59193,"date":"2026-02-26T17:38:17","date_gmt":"2026-02-26T21:38:17","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/ai-transformation-reshapes-tech-dell-surges-on-server-boom-while-block-slashes-workforce\/59193\/"},"modified":"2026-02-26T17:38:17","modified_gmt":"2026-02-26T21:38:17","slug":"ai-transformation-reshapes-tech-dell-surges-on-server-boom-while-block-slashes-workforce","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/ai-transformation-reshapes-tech-dell-surges-on-server-boom-while-block-slashes-workforce\/59193\/","title":{"rendered":"AI Transformation Reshapes Tech: Dell Surges on Server Boom While Block Slashes Workforce"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Dell Technologies (<a href=\"\/stock\/DELL\">DELL<\/a>)<\/strong> delivered a massive Q4 beat and issued Q1 revenue guidance of <strong>$34.7B to $35.7B<\/strong>, far exceeding the <strong>$29.3B<\/strong> analyst estimate.<\/li>\n<li><strong>Block (<a href=\"\/stock\/SQ\">SQ<\/a>)<\/strong> is terminating approximately <strong>4,000 employees<\/strong>, representing <strong>40% of its workforce<\/strong>, as CEO Jack Dorsey pivots the company toward an AI-centric operational model.<\/li>\n<li><strong>Intuit (<a href=\"\/stock\/INTU\">INTU<\/a>)<\/strong> surpassed Q2 expectations with <strong>$4.65B<\/strong> in revenue, though its full-year guidance remains slightly conservative compared to Wall Street consensus.<\/li>\n<li><strong>CoreWeave (<a href=\"\/stock\/CRWV\">CRWV<\/a>)<\/strong> reported strong Q4 revenue of <strong>$1.57B<\/strong>, but the AI infrastructure provider saw its net loss widen to <strong>$452M<\/strong>, missing profitability targets.<\/li>\n<\/ul>\n<h2>Dell Projects Massive AI Growth and Capital Returns<\/h2>\n<p><strong>Dell Technologies (<a href=\"\/stock\/DELL\">DELL<\/a>)<\/strong> shares are in focus after the company reported Q4 2026 adjusted EPS of <strong>$3.89<\/strong>, beating the <strong>$3.52<\/strong> estimate. Total net revenue reached <strong>$33.38B<\/strong>, fueled by a surge in demand for AI-optimized servers.<\/p>\n<p>The company expects the AI server boom to drive <strong>$50B in sales by 2027<\/strong>, signaling a long-term structural shift in its business model. In response to the strong performance, <strong>Dell (<a href=\"\/stock\/DELL\">DELL<\/a>)<\/strong> raised its annual dividend by <strong>20%<\/strong> and boosted its share buyback program by <strong>$10B<\/strong>.<\/p>\n<h2>Block Slashes Headcount in Aggressive AI Pivot<\/h2>\n<p>Jack Dorsey\u2019s <strong>Block (<a href=\"\/stock\/SQ\">SQ<\/a>)<\/strong> has announced a drastic restructuring, cutting nearly <strong>half of its workforce<\/strong> to lean into artificial intelligence. The layoff of <strong>4,000 people<\/strong> is intended to streamline operations and reduce overhead as the company integrates AI across its ecosystem.<\/p>\n<p><em>This move comes as Wall Street remains divided on the software sector.<\/em> While institutional investors have been dumping software stocks due to <em>fears of AI-driven disruption<\/em>, non-professional retail investors have reportedly been buying the dip, betting on a long-term recovery.<\/p>\n<h2>Mixed Results for Intuit and CoreWeave<\/h2>\n<p><strong>Intuit (<a href=\"\/stock\/INTU\">INTU<\/a>)<\/strong> reported solid Q2 2026 results, with adjusted operating income hitting <strong>$1.55B<\/strong> against the <strong>$1.4B<\/strong> expected. Despite the beat, the company maintained its full-year revenue guidance of <strong>$21.00B to $21.19B<\/strong>, which sits just below the <strong>$21.25B<\/strong> analyst consensus.<\/p>\n<p>AI infrastructure specialist <strong>CoreWeave (<a href=\"\/stock\/CRWV\">CRWV<\/a>)<\/strong> posted Q4 2025 revenue of <strong>$1.57B<\/strong>, narrowly beating estimates. However, the firm\u2019s adjusted EBITDA of <strong>$898M<\/strong> fell short of the <strong>$936M<\/strong> target, and net losses were deeper than anticipated at <strong>$452M<\/strong>.<\/p>\n<h2>Global Macro: New Zealand Sentiment Slides<\/h2>\n<p>On the macroeconomic front, the <strong>New Zealand ANZ Consumer Confidence Index<\/strong> plummeted in February. The index fell <strong>6.6% month-over-month<\/strong> to a reading of <strong>100.1<\/strong>, erasing the gains seen in the previous period. <em>Analysts suggest that persistent inflation and high interest rates continue to weigh heavily on Kiwi household sentiment.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Dell Technologies (DELL) delivered a massive Q4 beat and issued Q1 revenue guidance of $34.7B to $35.7B, far [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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