Dell Technologies (DELL) Raises its AI Server Forecast for the Second Time This Year

Dell Technologies reported strong financial results on September 1, with its stock surging 9% following the announcement of a revised forecast for fiscal 2027. The company expects adjusted earnings per share of $25.50 and revenue of $192 billion, surpassing analyst estimates. This marks the second time this year that Dell has raised its AI server revenue forecast, now projecting $74 billion, up from $60 billion.

Second-quarter revenue hit a record $47 billion, driven by a 58% year-over-year increase and beating estimates by $2.08 billion. AI server orders reached a record $60.9 billion, and Dell's backlog of AI server orders surpassed $95 billion, a more than doubling of its $43 billion backlog from fiscal 2026. The company's AI customer base has grown to more than 6,500 accounts, bolstering its resilience against large customer dependencies.

Dell's Infrastructure Solutions Group generated $31.8 billion in revenue, reflecting an 89% year-over-year growth. The results underscore the company's potential for sustained growth, despite challenges such as supply-chain constraints and intense competition in the AI server market.