● Covered by 1 source · 1 reportMedium impact1 positive
Dell Raises Fiscal 2027 Forecast on Strong AI Server Sales, Shares Up 9%
Key points
- Q2 adjusted EPS of $7.04 vs. $4.92 expected; revenue $46.97B vs. $44.92B expected.
- Infrastructure Solutions Group revenue grew 89% to $31.78B.
- AI-optimized server revenue reached $16.40B in Q2.
- Fiscal 2027 guidance raised to $25.50 adjusted EPS on $192B revenue.
Strong Q2 Performance Exceeds Expectations
Dell Technologies announced fiscal second-quarter results that surpassed Wall Street estimates. The company reported adjusted earnings per share of $7.04 on revenue of $46.97 billion, compared to analyst expectations of $4.92 EPS and $44.92 billion in revenue. Revenue increased by approximately 58% year-over-year for the quarter ending July 31.
Increased Financial Outlook
Following the strong quarterly performance, Dell raised its financial guidance for both the fiscal third quarter and the full fiscal year. For Q3, Dell projects $6.50 in adjusted EPS on $49.0 billion in revenue. The company's full-year outlook now stands at $25.50 in adjusted EPS on $192 billion in revenue, an increase from previous estimates. Dell also updated its fiscal 2027 guidance to $25.50 adjusted EPS and $192 billion in revenue, up from $17.90 EPS and $165 billion to $169 billion in revenue previously.
AI Server Demand Drives Growth
The Infrastructure Solutions Group, which focuses on data center hardware, was a key driver of growth, posting $31.78 billion in fiscal second-quarter revenue, an 89% increase. Within this segment, AI-optimized servers generated $16.40 billion in revenue. Storage revenue increased by almost 26% to $4.85 billion, and traditional servers and networking equipment revenue jumped 122% to $10.53 billion. Price increases due to rising input costs also contributed to the elevated revenue guidance.
Market Reaction and Broader Impact
Dell's shares rose 9% in extended trading following the announcement. The stock has gained 236% year-to-date, significantly outperforming the S&P 500. This performance reflects investor confidence in Dell's position within the growing artificial intelligence infrastructure market. The company's founder and CEO, Michael Dell, is now ranked as the world's fifth richest person.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Dell Technologies reported fiscal second-quarter earnings and revenue that exceeded analyst expectations, driven by significant growth in its Infrastructure Solutions Group, particularly AI-optimized servers. The company subsequently raised its full-year and fiscal 2027 financial forecasts, indicating continued strong demand for its data center hardware. This performance highlights the increasing market demand for AI infrastructure, benefiting hardware providers like Dell.