Dell surges 9% after lifting fiscal 2027 forecast on AI server strength

Dell sees AI server revenue tripling in fiscal 2027. Six months ago, it was looking for the number to double.

Dell surges 9% after lifting fiscal 2027 forecast on AI server strength

TL;DR

  • Dell Technologies' shares rose 9% in extended trading after reporting strong earnings and an optimistic forecast.
  • The company's second-quarter earnings per share ($7.04) and revenue ($46.97 billion) exceeded analyst expectations.
  • Revenue grew 58% year over year, with net income rising significantly compared to the previous year.
  • Dell raised its third-quarter and full-year forecasts, anticipating substantial adjusted earnings per share and revenue.
  • AI-optimized server revenue reached $16.40 billion in the fiscal second quarter, contributing to an 89% increase in the Infrastructure Solutions Group.
  • The company now projects $74 billion in AI-optimized server sales for the fiscal year, a significant increase from previous predictions.
  • Dell secured a $9.7 billion contract with the U.S. military and an agreement with Iren for $1.6 billion in hardware.
  • The Client Solutions Group (PCs and accessories) revenue increased 20% but was slightly below consensus, as Dell shifted focus to infrastructure.