Dell Technologies reported fiscal second-quarter results that exceeded Wall Street expectations, prompting the company to significantly raise its full-year outlook. Revenue for the quarter ending July 31 grew approximately 58% year over year, while net income reached $4.13 billion, or $6.34 per share, compared to $1.70 per share in the prior-year period.
The company lifted its fiscal 2027 guidance substantially, now projecting $25.50 in adjusted earnings per share on $192 billion in revenue. This compares to analyst expectations of $18.92 per share and $172.67 billion in revenue. For the fiscal third quarter specifically, Dell forecast $6.50 in adjusted earnings per share on $49.0 billion in revenue, well above consensus estimates of $4.49 per share and $41.42 billion. Operating Chief Jeff Clarke attributed the elevated revenue guidance in part to price increases resulting from rising input costs.
The company’s Infrastructure Solutions Group, which handles data center hardware, generated $31.78 billion in revenue during the quarter, up 89% year over year. AI-optimized servers contributed $16.40 billion of that total. Traditional servers and networking equipment revenue jumped 122% to $10.53 billion, while storage revenue increased nearly 26% to $4.85 billion. Clarke noted growing customer demand for CPU compute capacity to support artificial intelligence and agentic workflows, creating incremental demand for traditional servers alongside specialized AI infrastructure.
Dell’s Client Solutions Group, serving consumer and commercial PC markets, posted $15.03 billion in revenue, up 20% year over year. The company also secured a $9.7 billion contract to provide software to the U.S. military during the quarter, and cloud infrastructure provider Iren agreed to purchase $1.6 billion in Dell hardware including servers with Nvidia chips. Dell now forecasts $74 billion in AI-optimized server sales for the fiscal year, representing 200% growth and a significant increase from the 103% growth rate the company had projected six months earlier.
Shares rose 9% in extended trading on the results. Year to date, Dell stock has gained 236%, substantially outpacing the S&P 500’s 11% gain. The strong performance has made Dell a popular choice for investors seeking exposure to artificial intelligence infrastructure growth.
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