Dell’s AI server revenue reached USD 16.4 billion, up 100% year over year, with a record USD 95 billion backlog.
Traditional servers and networking rose 122%, while storage grew 26%, showing wider demand across Dell’s infrastructure portfolio.
Dell raised fiscal 2027 revenue guidance to USD 192 billion and its AI server revenue target to USD 74 billion.
Dell Technologies has reached a point where AI no longer sits inside one part of its business. The latest results show demand across AI servers, traditional servers, networking, storage and commercial PCs. That mix gives Dell a much wider AI story than a simple bet on data-center hardware.
Dell reported record second-quarter fiscal 2027 revenue of USD 47.0 billion, up 58% year over year. Diluted earnings per share reached USD 6.34, up 273%, while non-GAAP diluted earnings per share reached USD 7.04, up 203%. Cash flow from operations stood at USD 2.2 billion. The numbers show strong sales and a sharp rise in profit.
The clearest sign of Dell’s AI strength sits inside its Infrastructure Solutions Group. AI-optimized server revenue reached USD 16.4 billion, up 100% from a year earlier. Dell also booked a record USD 60.9 billion in AI orders during the quarter and ended the period with a record USD 95 billion AI server backlog.
That backlog gives Dell a large pool of future revenue. The company also said its AI customer base rose from 5,000 to 6,500 in one quarter. Dell has now shipped rack systems based on the NVIDIA Vera Rubin platform, while demand has spread across neocloud firms, sovereign AI projects and enterprise customers.
Dell has raised its full fiscal 2027 AI-optimized server revenue target from USD 60 billion to USD 74 billion. The new figure represents a 200% year-over-year increase, or three times the prior-year level. That sharp upgrade gives the AI server unit a central role in Dell’s financial outlook.
The wider infrastructure business also adds weight to the story. Infrastructure Solutions Group revenue reached USD 31.8 billion, up 89%, while operating income reached USD 4.8 billion, up 225%. Traditional servers and networking generated revenue of USD 10.5 billion, up 122%. This matters as AI workloads also require strong central processing unit capacity, network links and data systems.
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Storage gives Dell another route into the AI cycle. Storage revenue reached USD 4.9 billion, up 26% from a year earlier. AI systems need large amounts of data, and that data needs storage before, during and after model use. Dell therefore has a chance to gain from AI demand outside the GPU server market.
The PC business adds another part to the picture. Client Solutions Group revenue reached USD 15.0 billion, up 20%. Commercial client revenue rose 22% to USD 13.2 billion, while consumer revenue rose 7% to USD 1.8 billion. Dell also reported USD 1.1 billion in Client Solutions Group operating income, up 42%.
This gives Dell a broad path from the employee desk to the data center. AI-capable PCs and workstations can support local AI tasks, while servers can handle larger workloads. Networking connects those systems, and storage holds the data that AI systems need. Each part can support demand for another part of the portfolio.
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Dell has now raised its full-year fiscal 2027 revenue forecast by USD 25 billion, from USD 167 billion to USD 192 billion. The new forecast calls for 69% year-over-year growth. Non-GAAP diluted earnings per share should reach USD 25.50, up 148%, while GAAP diluted earnings per share should reach USD 24.37, up 181%.
For the third quarter, Dell expects revenue of USD 49.0 billion, up 81%, with non-GAAP diluted earnings per share of USD 6.50, up 151%. Infrastructure revenue should rise about 145%, with AI server revenue near USD 19 billion.
Dell also returned a record USD 4.3 billion to shareholders through dividends and share repurchases in the second quarter. Its board declared a quarterly dividend of USD 0.63 per common share, payable on October 30.
The market has already reacted. Dell shares reached a 52-week high of USD 516.39 on September 3, while some analysts raised targets after the results. Reuters reported targets of USD 499 from Morgan Stanley and USD 600 from Citi.
The main question now goes beyond demand. Dell must turn its huge AI server pipeline into strong margins and cash flow. AI servers can produce enormous sales, yet expensive components and intense customer bargaining power can limit profit. For Dell, the real test lies in whether AI can lift the whole portfolio rather than only server revenue.
That is what makes the current Dell story important. AI servers provide the spark, while PCs, networking and storage give the business more ways to capture the same technology cycle.
1. What is driving Dell’s AI growth?
AI server demand remains the main growth driver, with strong support from networking, storage and commercial PCs.
2. How large is Dell’s AI server backlog?
Dell ended the second quarter of fiscal 2027 with a record USD 95 billion AI server backlog.
3. How much did Dell’s AI server revenue grow?
AI-optimized server revenue reached USD 16.4 billion, up 100% year over year.
4. What is Dell’s fiscal 2027 revenue forecast?
Dell now expects USD 192 billion in fiscal 2027 revenue, up from its earlier forecast of USD 167 billion.
5. Why do storage and networking matter to Dell’s AI strategy?
AI workloads need high-speed networks and large data stores, so stronger AI demand can also support Dell’s networking and storage businesses.