Dell Technologies reported fiscal second-quarter results that exceeded Wall Street consensus estimates across key metrics. Revenue grew approximately 58% year over year to reach levels higher than all analyst forecasts, while net income totaled $4.13 billion, or $6.34 per share, compared with $1.16 billion, or $1.70 per share, in the prior-year quarter.
The company elevated its full-year fiscal 2027 outlook substantially. Dell now projects $25.50 in adjusted earnings per share on $192 billion in revenue, surpassing analyst expectations of $18.92 per share and $172.67 billion in revenue. For the fiscal third quarter specifically, the company guided to $6.50 in adjusted earnings per share on $49.0 billion in revenue, implying 81% growth and significantly exceeding consensus forecasts of $4.49 per share and $41.42 billion in revenue. Operating Chief Jeff Clarke attributed the elevated revenue guidance partly to price increases resulting from higher input costs.
Artificial intelligence server demand drove substantial growth within the company’s infrastructure segment. The Infrastructure Solutions Group posted $31.78 billion in fiscal second-quarter revenue, up 89%, with AI-optimized servers generating $16.40 billion. Revenue from traditional servers and networking equipment jumped 122% to $10.53 billion, reflecting what Clarke characterized as growing customer demand for CPU compute capacity supporting AI and agentic workflows. Storage revenue climbed nearly 26% to $4.85 billion. The Client Solutions Group, which handles PC and consumer sales, contributed $15.03 billion, up 20% but slightly below analyst consensus.
During the period, Dell secured a $9.7 billion contract to provide software to the U.S. military and received a $1.6 billion hardware order from cloud infrastructure provider Iren. The company raised its AI-optimized server sales forecast to $74 billion for the fiscal year, representing projected 200% growth and substantially higher than the 103% growth projected six months prior.
Dell shares gained 9% in extended trading following the announcement. Year to date through Tuesday’s close, the stock had risen 236%, outpacing the S&P 500’s 11% gain over the same period.
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