Dell Technologies shares advanced 8.3% in after-hours trading after the company reported fiscal second-quarter 2027 results that exceeded analyst expectations and raised its full-year guidance on surging demand for AI servers.
The Round Rock, Texas-based company posted adjusted earnings per share of $7.04, well above the $4.87 forecast by analysts. Revenue totaled $46.97 billion, surpassing the $44.84 billion estimate. The Infrastructure Solutions Group, which houses AI servers, saw revenue jump 89% year-over-year to $31.78 billion, nearly doubling the legacy hardware division’s contribution.
Client Solutions Group revenue, comprising PCs and related devices, rose 20% to $15.03 billion. Dell’s AI server business booked $60.9 billion in orders during the quarter, generating $16.4 billion in revenue and leaving a record $95 billion backlog at quarter-end. Chief Operating Officer Jeff Clarke highlighted the all-time high in AI server orders and backlog as key drivers of the company’s outlook.
For the fiscal third quarter, Dell guided adjusted EPS to $6.50 on revenue of $49 billion, up from prior expectations of $41.91 billion. The full-year outlook was revised to adjusted EPS of $25.50 and revenue of $192 billion, compared with prior guidance of $17.90 per share and $167 billion, respectively. The top-line consensus estimate had been $173.8 billion.
The company’s AI server momentum reflects broader industry demand that emerged in late 2022, with Dell positioning itself as a key supplier to the artificial intelligence infrastructure ecosystem.
