Dell raises full-year forecast by $25B after record AI quarter

Dell Technologies ↘ 6.80% delivered a blowout second quarter on Tuesday, reporting record revenue of $47 billion — up 58% year over year — and raising its full-year outlook by $25 billion as demand for AI-powered servers continued to accelerate far beyond expectations.cnbc+1

The results, released after the market close on September 1, crushed Wall Street consensus estimates that had called for roughly $4.91 in adjusted earnings per share on $44.9 billion in revenue. Dell posted adjusted EPS of $7.04, up 203% year over year, and GAAP diluted EPS of $6.34, up 273%. Shares rose about 5% in extended trading.stocktitan+3

AI Orders and Backlog Surge

The quarter's standout figure was $60.9 billion in AI server orders, a company record, pushing Dell's unfilled AI server backlog to $95 billion — nearly double the $51.3 billion reported at the end of the first quarter. AI-optimized server revenue reached $16.4 billion, up 100% from a year ago.marketwatch+1

"Customers are investing accordingly — creating opportunity across our portfolio," said Jeff Clarke, Dell's vice chairman and chief operating officer, in the company's earnings release. "That's clearest in our AI server business where we booked a record $60.9 billion in orders".stocktitan

The Infrastructure Solutions Group, which houses Dell's data center hardware, posted $31.78 billion in revenue, up 89%, while traditional servers and networking revenue jumped 122% to $10.53 billion. Storage revenue rose 26% to $4.85 billion.cnbc+1

Raised Outlook Dwarfs Prior Guidance

Dell raised its full-year fiscal 2027 revenue guidance to $192 billion — up nearly 70% year over year — from a prior range of $165 billion to $169 billion issued just six months ago. Adjusted EPS guidance climbed to $25.50, compared with the previous $17.90 and the analyst consensus of $18.92.cnbc+1

For the fiscal third quarter, Dell guided to $49 billion in revenue and $6.50 in adjusted EPS, well ahead of analyst expectations of $41.42 billion and $4.49 per share. The company now projects $74 billion in AI-optimized server sales for the full year, implying 200% growth.cnbc

Context and What's Ahead

The results came after Dell shares had already gained more than 260% year to date heading into the report, making it one of the top-performing large-cap stocks of 2026. During the quarter, Dell secured a $9.7 billion software contract with the U.S. military and a $1.6 billion hardware deal with AI cloud provider Iren.247wallst+2

CFO David Kennedy said the company returned a record $4.3 billion to shareholders through buybacks and dividends during the quarter. Dell's founder and CEO Michael Dell is now the world's fifth-richest person, according to Bloomberg.cnbc+1

Hewlett Packard Enterprise ↘ 2.62%, which reports its own quarterly results on Wednesday, and competitor Super Micro Computer ↘ 1.53% will face renewed pressure to show they can keep pace with Dell's accelerating AI momentum.stocktwits