Dell Technologies beat Wall Street estimates for its fiscal second quarter and raised its full-year revenue guidance to $192 billion, up from a prior $167 billion, as AI server orders and backlog surged. Shares jumped in extended trading after the report, while a $95 billion AI backlog signals demand stretching well into calendar 2026 and potentially beyond.
Dell Technologies shares moved 9% higher in extended trading on Tuesday after the computer maker's fiscal second-quarter results and forecast cleared Wall Street expectations. The report showed how central Dell has become to the AI infrastructure buildout.
AI server orders push Q2 past estimates
Quarterly revenue came in at $46.97 billion, up about 58% year over year and above the $44.92 billion analysts had expected. Adjusted earnings per share reached $7.04, versus $4.92 expected. Net income rose to $4.13 billion, or $6.34 per share, from $1.16 billion, or $1.70 per share, a year earlier.
The AI server business booked $60.9 billion in orders during the quarter and generated $16.4 billion in revenue, up 100% from a year ago. Dell exited the quarter with $95 billion in AI backlog, up from $51.3 billion in its prior earnings report.
Full-year guidance raised again
Dell now expects $25.50 in adjusted earnings per share on $192 billion in revenue for fiscal 2027, up from a prior forecast of $167 billion. As of May, the company's guidance had called for $17.90 in adjusted earnings per share on $165 billion to $169 billion in revenue.
For the fiscal third quarter, Dell called for $6.50 in adjusted earnings per share on $49.0 billion in revenue, above the $4.49 per share and $41.42 billion analysts had penciled in. The company also lifted its full-year forecast for AI-optimized server sales to $74 billion, up 200%, from a prior projection of 103% growth.
Other segments grow alongside AI
Dell's Infrastructure Solutions Group posted $31.78 billion in revenue, up 89%. Within that group, traditional servers and networking revenue jumped 122% to $10.53 billion. Storage revenue rose almost 26% to $4.85 billion. The Client Solutions Group, which sells PCs, contributed $15.03 billion, up 20%.
During the quarter Dell also received a $9.7 billion contract to provide software to the U.S. military. AI cloud provider Iren separately agreed to buy $1.6 billion in Dell hardware, including servers built with Nvidia chips.
Shares extend a sharp run-up
As of Tuesday's close, Dell shares had gained 236% year to date, against an 11% gain for the S&P 500 over the same period. Separately, MarketWatch reported the stock fell nearly 7% during Tuesday's session before rallying more than 8% in after-hours trading, putting it up 239% for the year.
Sources: CNBC, MarketWatch, Crypto Briefing
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