Dell Technologies has raised its full-year revenue and profit guidance after reporting stronger-than-expected quarterly results, driven by soaring demand for artificial intelligence servers.
Shares in the company rose 8.3% in after-hours trading following the results.
Dell reported adjusted earnings of $7.04 per share on revenue of $46.97 billion for its fiscal second quarter of 2027. Analysts had expected adjusted earnings of $4.87 per share on revenue of $44.84 billion.
The company’s Infrastructure Solutions Group (ISG), which houses its AI server business, was the main driver of growth. ISG revenue surged 89% year-on-year to $31.78 billion, compared with a 20% increase in revenue from its Client Solutions Group (CSG) to $15.03 billion.
Jeff Clarke, Dell’s chief operating officer, said the company’s AI server business recorded an all-time high $60.9 billion in orders, generated $16.4 billion in revenue and ended the quarter with a record $95 billion backlog.
The ISG segment now generates roughly twice the revenue of Dell’s legacy hardware division, which includes personal computers, laptops and tablets.
Dell has emerged as a major beneficiary of the artificial intelligence boom that began in late 2022. The company has partnered with chipmakers including Nvidia to manufacture rack-scale servers and infrastructure designed to support AI workloads.
For the third quarter of fiscal 2027, Dell expects adjusted earnings of $6.50 per share on revenue of $49 billion, compared with an anticipated revenue of $41.91 billion.
For the full fiscal year 2027, the company raised its adjusted earnings forecast to $25.50 per share, from a previous outlook of $17.90, while revenue guidance was increased to $192 billion from $167 billion.
The new full-year revenue forecast is also above the analysts’ consensus estimate of $173.8 billion.
