Dell Smashes Q2 Earnings as AI Infrastructure Revenue Soars 58%

Dell Technologies has reported record-breaking financial results for its second quarter of fiscal 2027. The tech giant posted net revenue of $47.0 billion, representing a massive 58% increase year over year, while significantly raising its full-year revenue outlook by $25 billion.

The impressive quarterly performance was spearheaded by the company’s Infrastructure Solutions Group (ISG), which handles enterprise hardware, data centre solutions, and AI deployment platforms. Dell reported that it booked a record $60.9 billion in AI server orders during the quarter alone. The company recognized $16.4 billion in AI server revenue for the period and exited the quarter holding a staggering $95 billion order backlog.

Beyond AI-specific infrastructure, broader enterprise hardware demand showed robust expansion across the board. Traditional servers and networking revenue climbed 122% year over year, while storage revenue rose 26%. Meanwhile, Dell’s Client Solutions Group (CSG), which encompasses commercial and consumer PC offerings, generated $15.0 billion in revenue.

Operating income for the quarter surged 204% to $5.385 billion, with diluted earnings per share (EPS) reaching $6.34, up 273% from the same period last year. On a non-GAAP basis, diluted EPS came in at $7.04, marking a 203% increase year over year.

The firm’s strong operational cash flow of $2.2 billion allowed Dell to return a record $4.3 billion to shareholders during the quarter through stock repurchases and cash dividends. Additionally, Dell’s board of directors declared a quarterly cash dividend of $0.63 per common share, payable on October 30 to shareholders of record as of October 20.

Capitalizing on its strong momentum, Dell significantly upgraded its guidance for the full fiscal year 2027. The company raised its annual revenue target by $25 billion to an expected $192.0 billion, which would mark a nearly 70% increase compared to the previous fiscal year.