Dell raises its FY27 revenue outlook to $192 billion as record AI server orders and a $95 billion backlog signal accelerating infrastructure demand.
Dell Technologies (DELL) delivered a blockbuster fiscal second-quarter 2027 performance, significantly exceeding Wall Street expectations as surging demand for artificial intelligence infrastructure fueled growth across its server business.
Revenue jumped 58% year over year to $47.0 billion, comfortably beating the $44.92 billion consensus estimate. Adjusted earnings per share reached $7.04, versus expectations of $4.91, representing a 203% increase from a year earlier.
AI infrastructure was the standout. Revenue from AI-optimized servers doubled year over year to a record $16.4 billion, slightly above the $16 billion estimate. Infrastructure Solutions Group revenue surged 89% to $31.8 billion, while traditional servers and networking revenue climbed 122% to $10.5 billion. Storage revenue increased 26% to $4.9 billion.
Demand indicators were even stronger. Dell booked a record $60.9 billion in AI server orders and ended the quarter with a massive $95 billion backlog.
Profitability expanded alongside revenue. Operating income increased 204% to $5.4 billion, while net income surged 255% to $4.1 billion. Adjusted free cash flow reached $8.1 billion, up 224% year over year.
The strength prompted Dell to sharply raise its FY27 outlook. The company now expects $192 billion in revenue, well above the $172.67 billion consensus estimate and its previous $167 billion forecast. Dell also raised expected AI-optimized server revenue from $60 billion to $74 billion and adjusted EPS guidance from $17.90 to $25.50.
For the third quarter, Dell expects approximately $49 billion in revenue, significantly above Wall Street’s $41.42 billion estimate.
“With AI momentum accelerating and our opportunity expanding across the portfolio, we’re raising our full-year FY27 revenue outlook by $25 billion to $192 billion,” management said.
Dell’s results reinforce its increasingly important position in the global AI infrastructure buildout.
