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Dell’s AI-optimized server revenue reached USD 16.4 billion, up 100% year over year.
Dell’s AI server backlog reached USD 95 billion, highlighting strong enterprise infrastructure demand.
Dell is expanding beyond servers into storage, networks, cooling, private cloud and AI automation.
Dell Technologies has made AI hardware a core growth engine, with servers, storage, network gear, thermal systems, private cloud tools, data systems and automation for enterprise AI. The latest results show the scale of that shift. Michael Dell now has a much larger opportunity than the traditional PC and server market that built the company.
Dell reported record second-quarter fiscal 2027 revenue of USD 47.0 billion, up 58% from a year earlier. AI-optimized server revenue reached USD 16.4 billion, a 100% year-over-year increase. Dell also booked a record USD 60.9 billion in AI server orders and ended the quarter with a USD 95 billion backlog.
Infrastructure Solutions Group revenue reached USD 31.8 billion, up 89%. Traditional server and network revenue hit USD 10.5 billion, up 122%, while storage revenue reached USD 4.9 billion, up 26%. Client Solutions revenue rose 20%. The figures show that AI demand reaches far beyond GPU systems, with added demand for CPUs, storage, networks and other data center hardware.
Michael Dell has placed the Dell AI Factory at the center of the company’s AI plan. The model links compute, storage, data, networks, software and services into one enterprise platform. Dell pairs much of this hardware with NVIDIA technology, which gives the company a direct route into the AI infrastructure market.
Dell says more than 6,500 customers now use the AI Factory, up from 5,000 in one quarter. Demand also comes from neocloud firms and sovereign AI projects. The platform gives enterprises a way to place AI on infrastructure under direct enterprise control. Dell also expanded the AI Factory with new systems based on NVIDIA Vera Rubin technology.
Dell has expanded its storage portfolio to capture more of the AI infrastructure market. PowerStore Elite can deliver up to three times the performance and density of prior generations. The platform can hold up to 5.8 petabytes of effective capacity in a single 3U system and offers a 6:1 data reduction guarantee.
Dell’s AI Data Platform with NVIDIA also targets data access, analytics and AI-ready enterprise information. That gives Dell a role beyond the GPU rack. Fast processors need fast access to data, while storage and network speed can shape the real output of an AI system.
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AI racks create far more heat than older enterprise systems. Dell has responded with new PowerEdge systems that use advanced air and liquid thermal designs. The 18th-generation PowerEdge line can deliver up to 70% better performance and 13-to-1 consolidation, per Dell.
Dell has also added the PowerEdge XE8812 with NVIDIA Vera Rubin NVL4 architecture. The system can support up to 144 GPUs per rack. That density matters as data center space, power and thermal capacity become tighter limits for AI expansion.
The Dell Automation Platform uses AI agents and a conversational interface for infrastructure management. Automation Studio adds tools for custom workflows across compute, storage and networks. Dell also expanded its private cloud platform with support for software from Broadcom, Microsoft, Nutanix and Red Hat. The setup lets enterprises run cloud-style systems on Dell infrastructure with more control over data and hardware.
Dell raised its fiscal 2027 revenue forecast by USD 25 billion to USD 192 billion. The company now expects USD 74 billion in AI-optimized server revenue for the full fiscal year, up from a prior forecast of USD 60 billion. Dell also reported more than USD 130 billion in AI server orders over the past year.
That scale changes Dell’s role inside enterprise technology budgets. AI demand can lift traditional servers, storage, networks, thermal systems and private cloud tools at the same time. That could let Dell capture several layers of enterprise infrastructure from one AI investment cycle.
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Michael Dell’s AI strategy rests on a simple idea: enterprise AI needs much more than a fast chip. It needs compute, data, storage, networks, power, thermal systems and software that can work as one system.
Dell’s latest results show broad enterprise demand. The USD 95 billion AI backlog and USD 192 billion full-year revenue forecast give the strategy clear scale. The next test is durable revenue, profit and long-term enterprise relationships. AI now sits at the center of Dell’s hardware strategy, with the technology tied to almost every major part of its infrastructure portfolio.
1. What is Michael Dell’s AI strategy?
Michael Dell is positioning Dell Technologies as a broad enterprise AI infrastructure provider rather than only a server company.
2. How much AI server revenue did Dell report?
Dell reported USD 16.4 billion in AI-optimized server revenue during its second fiscal quarter of 2027.
3. What is Dell’s AI server backlog?
Dell reported an AI server backlog of USD 95 billion.
4. What products support Dell’s AI strategy?
Dell’s AI portfolio includes servers, storage, networking, cooling systems, private cloud platforms, data infrastructure and automation tools.
5. What is Dell’s fiscal 2027 revenue forecast?
Dell raised its fiscal 2027 revenue forecast to USD 192 billion.
