Prime Highlights-
- Second quarter revenue hits record $47 billion, beating the $44.92 billion estimate.
- Dell books more than $130 billion in AI server orders over the past year.
Key Facts-
- Dell lifts annual revenue and profit forecasts again, fueled by soaring AI server demand.
- Company raises fiscal 2027 AI-optimized server revenue outlook to $74 billion.
Background-
Dell Technologies has again lifted its annual revenue and profit forecasts, marking the second profit outlook increase this year, as strong demand for its AI-optimized servers continues to drive growth.
The company raised its annual revenue outlook to $192 billion from $167 billion and lifted its adjusted earnings per share forecast to $25.50 from $17.90. It now expects fiscal 2027 revenue from AI-optimized servers to reach $74 billion, up from its earlier projection of $60 billion.
Second quarter revenue climbed 58% to a record $47 billion, surpassing an LSEG-compiled estimate of $44.92 billion. Adjusted earnings reached $7.04 per share, topping estimates of $4.91.
Chief Operating Officer Jeff Clarke said demand is broadening across neoclouds, sovereign clients, and enterprise customers, with customer count surpassing 6,500. He said Dell has booked more than $130 billion in AI server orders over the past year.
The servers, powered by Nvidia chips, are sought by AI cloud providers such as Nscale and CoreWeave to build computing clusters for training and running AI models. Recent forecasts from Nvidia and Super Micro Computer have also boosted investor confidence in the AI boom.
Dell’s PC segment revenue rose 20%, led by commercial clients, with Clarke noting the unit’s growth is at its fastest pace in five years. Revenue from its storage, software, and server unit jumped 89%, while traditional server and networking sales more than doubled on infrastructure upgrades and demand for CPU-based servers handling agentic workloads.