Dell Technologies Reports Record Revenue Driven by Strong AI Infrastructure Demand
Dell Technologies (DELL) reported a record second-quarter revenue of $46.97 billion, up 58% year-over-year and surpassing analyst expectations. The surge was primarily driven by strong demand for its AI-optimized servers, which saw revenue double to $16.4 billion with an impressive backlog of $95 billion. This growth has led Dell to raise its fiscal 2027 AI-server revenue forecast from $60 billion to $74 billion and increase overall revenue guidance to $192 billion. The company noted a broadening demand for AI infrastructure across neoclouds, sovereign customers, and enterprises, with over 6,500 AI clients. Traditional servers and networking also saw significant growth due to agentic AI workloads. Additionally, the PC business showed improvement, contributing further to Dell's revenue expansion. Despite rising component costs, Dell has maintained pricing power to protect margins. However, its stock is now trading at a high valuation of 20.3 times forward earnings compared to historical averages.
Tickers: $DELL
Topics: AI infrastructure financial performance server demand