Dell Technologies Raises Its Fiscal 2027 AI Server Revenue Forecast for Second Time in 2026
On September 1, 2026, Dell Technologies (DELL) raised its fiscal 2027 revenue and earnings outlook due to strong demand for AI servers. The company now expects $192 billion in revenue with adjusted EPS of $25.50—up from a May forecast—and significantly above analyst estimates. This marks the second time this year Dell has increased guidance, driven by record-breaking Q2 results where revenue hit $47 billion and AI server orders reached $60.9 billion. Dell's backlog surged to $95 billion in just two quarters, reflecting robust forward demand visibility. The company’s AI customer base now exceeds 6,500 accounts across various sectors, reducing reliance on large clients alone. Beyond AI servers, Dell also saw strong growth from its Infrastructure Solutions Group and is returning cash to shareholders through buybacks and dividends. However, the massive backlog remains unconverted into revenue, raising questions about timing of sales realization. Additionally, rising input costs have contributed to higher guidance, which may impact margins as competition intensifies in AI infrastructure.
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