Dell Raises Full-Year Guidance as AI Server Revenue Doubles
Dell Technologies reported a strong second-quarter performance with revenue of $47 billion, surpassing estimates by nearly $2.1 billion and marking an impressive year-over-year increase of 58%. Adjusted earnings per share came in at $7.04—more than triple the prior year's figure—and well above expectations. The company attributed much of its success to a doubling of AI-optimized server revenue, which reached $16.4 billion and exceeded forecasts. Dell raised its full-year fiscal 2027 revenue guidance from $167 billion to $192 billion—well ahead of analyst estimates—and lifted expectations for AI server sales to $74 billion from $60 billion. Adjusted EPS guidance was also increased, now at $25.50 compared with a prior forecast of $17.90 and an estimated $18.90. The Infrastructure Solutions Group saw revenue rise 89% year-over-year to $31.8 billion, while Traditional Servers & Networking revenue surged by 122%. Strong performance across multiple segments contributed to record orders ($60.9 billion) and a robust backlog of $95 billion.
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Topics: AI servers guidance raise IT infrastructure server demand