Dell Posts Record Quarter, Raises Outlook on AI Server Boom

Dell Technologies delivered one of the strongest quarters in its history, posting record revenue and profit for its fiscal 2027 second quarter as demand for AI-optimized servers continued to surge, and the company sharply raised its full-year outlook.

Revenue reached $46.97 billion, up 58% year over year and above Wall Street's $44.92 billion estimate. Adjusted earnings per share came in at $7.04, far ahead of the $4.92 analysts had expected, while net profit jumped to $4.13 billion from $1.16 billion a year earlier.

The AI server business remained the standout: Dell booked a record $60.9 billion in AI-optimized server orders during the quarter and exited with a record $95 billion backlog. AI server revenue for the quarter totaled $16.4 billion, and the company now expects roughly $74 billion in AI server sales for the full fiscal year, up from an earlier forecast of 103% growth to about 200%.

Dell's Infrastructure Solutions Group, which includes servers and storage, posted revenue of $31.78 billion, up 89% year over year, with even traditional non-AI server sales climbing 122% as AI-driven data center buildouts lift demand across the business.

The company raised its full-year guidance to $192 billion in revenue and $25.50 in adjusted earnings per share, both well above prior Wall Street estimates of $172.67 billion and $18.92. Shares rose as much as 10% in after-hours trading following the report and are up more than 230% so far this year.

This is not investment advice.