Dell shares surge 9% after raising fiscal 2027 forecast on record AI server demand

Dell Technologies shares surged 9% following a stellar Q2 fiscal 2027 report, driven by record AI server demand. The company reported revenue of $46.97 billion, up 58% year-over-year, and adjusted EPS of $7.04. Spurred by a record $95 billion AI server backlog, Dell raised its full-year revenue forecast to $192 billion and adjusted EPS guidance to $25.50. The Infrastructure Solutions Group led growth with $31.78 billion in revenue, up 89%.

Dell Q2 fiscal 2027 earnings

• ▪Dell Technologies' Client Solutions Group, which sells personal computers and accessories, generated $15.03 billion in Q2 fiscal 2027 revenue, representing a 20% year-over-year increase.
• ▪Dell Technologies reported Q2 fiscal 2027 net income of $4.13 billion, or $6.34 per share, up from $1.16 billion, or $1.70 per share, in the same quarter a year earlier.
• ▪Dell Technologies reported Q2 fiscal 2027 revenue of $46.97 billion, representing a 58% year-over-year increase and exceeding LSEG consensus expectations of $44.92 billion.
• ▪Dell Technologies posted adjusted earnings of $7.04 per share for Q2 fiscal 2027, beating LSEG consensus analyst expectations of $4.92 per share.

AI server record backlog

• ▪Dell Technologies has booked more than $130 billion in AI server orders over the 12 months preceding September 2026, according to Chief Operating Officer Jeff Clarke.
• ▪Dell Technologies closed Q2 fiscal 2027 with a record backlog of $95 billion in its AI server business.
• ▪Dell Technologies' AI server unit received approximately $60.9 billion in orders during Q2 fiscal 2027, converting $16.4 billion of that amount into recognized revenue.
• ▪Dell Technologies secured hardware contracts from AI cloud service providers including CoreWeave Inc., Nscale Global Holdings Ltd., and Iren during fiscal 2027.

Raised fiscal 2027 revenue forecast

• ▪Dell Technologies raised its full-year fiscal 2027 revenue guidance to $192 billion, up from its previous May forecast of $167 billion to $169 billion.
• ▪For the fiscal third quarter of 2027, Dell Technologies forecast adjusted earnings of $6.50 per share on $49.0 billion in revenue, implying 81% growth.
• ▪Dell Technologies projects full-year fiscal 2027 revenue from AI-optimized servers to reach $74 billion, representing a 200% annual increase.
• ▪Dell Technologies raised its full-year fiscal 2027 adjusted earnings guidance to $25.50 per share, up from its previous May forecast of $17.90 per share.

Dell stock surge performance

• ▪Following Dell Technologies' earnings report, shares of rival server makers Hewlett Packard Enterprise and Super Micro rose by 5.4% and 0.7% respectively.
• ▪Dell Technologies shares rose approximately 9% to 10% in extended and pre-market trading on September 1 and September 2, 2026, following the earnings release.
• ▪Melius Research analysts raised their price target for Dell Technologies shares to $735 following the company's Q2 fiscal 2027 earnings release.
• ▪As of September 1, 2026, Dell Technologies shares had gained 236% year-to-date, compared to an 11% gain for the S&P 500 index over the same period.

Infrastructure Solutions Group growth

• ▪Within the Infrastructure Solutions Group, Dell Technologies generated $16.40 billion in revenue from AI-optimized servers during Q2 fiscal 2027.
• ▪Dell Technologies' Infrastructure Solutions Group, which targets data center hardware, posted $31.78 billion in Q2 fiscal 2027 revenue, representing an 89% year-over-year increase.
• ▪Dell Technologies' traditional servers and networking equipment revenue grew 122% year-over-year to $10.53 billion in Q2 fiscal 2027.
• ▪Dell Technologies' storage revenue rose nearly 26% year-over-year to $4.85 billion in Q2 fiscal 2027.