Dell Reports $60.9B in AI Server Orders and a $95B Backlog Amid Strong Revenue Growth
Dell Technologies reported fiscal second-quarter revenue of $47 billion, marking an impressive 58% year-over-year increase driven by strong demand for its AI servers. The company recorded $60.9 billion in AI server orders and a backlog of $95 billion, indicating robust future revenue visibility despite not disclosing the conversion timeline. Dell raised its full fiscal 2027 revenue outlook to $192 billion and increased expected AI-optimized server revenue from $60 billion to $74 billion. However, cash flow from operations declined by 13% year-over-year to $2.225 billion, with free cash flow dropping significantly to just $986 million before adjustments. The Infrastructure Solutions Group saw a significant increase in both revenue and operating income due to scale, pricing discipline, and improved operational efficiency. Despite these gains, concerns remain about the sustainability of current performance levels amid rising inventories and potential pressure from competitive hardware pricing.
Topics: AI servers backlog growth cash flow performance revenue guidance