Dell Raises Revenue Forecast to $192 Billion on AI Server Boom

Dell Technologies Raises Fiscal 2027 Revenue Forecast to $192 Billion Following Record AI Server Orders

Dell Technologies reported fiscal second-quarter revenue of $47 billion, marking a 58% increase from a year earlier that surpassed analysts’ expectations and prompted the company to raise its full-year sales forecast to $192 billion. The announcement, detailed in a Dell SEC filing, underscored the accelerating pace of the artificial intelligence infrastructure boom as corporate buyers race to secure computing capacity.

The company lifted its fiscal 2027 revenue outlook from $167 billion while raising its adjusted earnings-per-share forecast to $25.50 from $17.90. Following the earnings release, shares rose nearly 10% in premarket trading before paring their advance after the opening bell, helping anchor a recovery on Wall Street.

Surging AI Server Demand Drives Record Backlog

The primary engine behind the upward revision was unprecedented demand for artificial intelligence hardware. Dell booked a record $60.9 billion in AI server orders during the quarter, recognized $16.4 billion in related revenue, and closed the period with a $95 billion backlog.

For the full year, the company now projects AI-optimized server revenue of $74 billion, up from an earlier $60 billion forecast. That figure represents roughly triple the prior year’s total, reflecting aggressive data-center spending by cloud providers and large enterprises building infrastructure to train and operate advanced machine learning models.

Broad-Based Growth Across Infrastructure and Client Divisions

Growth extended well beyond specialized AI hardware during the quarter. The Infrastructure Solutions Group generated record revenue of $31.8 billion, representing an 89% year-over-year increase.

Traditional servers and networking revenue more than doubled to reach $10.5 billion, while storage revenue climbed 26% to $4.9 billion. Meanwhile, the Client Solutions Group produced $15 billion in revenue, up 20%, supported by a record $13.2 billion in commercial client sales.

Operating Margins and Shareholder Returns Face Close Scrutiny

Rapid expansion in hardware manufacturing brings distinct financial variables, as AI systems require expensive components and specialized chips that can carry different margins than traditional software or services. Dell reported record operating income of $4.8 billion for its infrastructure division, a 225% increase from the previous year.

That jump indicates volume growth is reaching the bottom line, though future performance will depend on component availability, pricing stability, and supply chain execution. Alongside its operating results, Dell returned a record $4.3 billion to shareholders through dividends and stock repurchases during the quarter.

Guidance Raises Expectations for the Fiscal Third Quarter

Looking ahead to the fiscal third quarter, Dell projects $49 billion in revenue and adjusted earnings of $6.50 per share. The updated full-year forecast now anticipates revenue growth of 69% and adjusted earnings-per-share growth of 148%.

While a $95 billion backlog secures near-term visibility, it also heightens execution risk should component shortages materialize or customers alter their deployment schedules. Dell’s results demonstrate that capital spending on artificial intelligence continues to benefit hardware manufacturers, networking suppliers, and data-center operators across the technology supply chain.