Dell Technologies Reports Record $47 Billion Revenue as AI Demand Drives Growth

Dell Technologies  has reported record financial results for the second quarter of its fiscal 2027, driven by strong demand for artificial intelligence infrastructure and growth across its portfolio.

The company recorded $47.0 billion in revenue for the quarter, representing a 58% increase year over year. Diluted earnings per share rose 273% to a record $6.34, while non-GAAP diluted EPS increased 203% to $7.04. Dell generated $2.2 billion in cash flow from operations during the quarter.

AI infrastructure remained a major growth driver for the company. Dell said its AI server business booked a record $60.9 billion in orders, while AI-Optimized Servers generated record revenue of $16.4 billion, up 100% year over year. The company ended the quarter with a record $95 billion backlog.

“IT environments have shifted from cost centers to value drivers that fuel growth and competitive advantage, and customers are investing accordingly – creating opportunity across our portfolio. That’s clearest in our AI server business where we booked a record $60.9 billion in orders, recognized a record $16.4 billion in revenue and exited the quarter with a record $95 billion backlog. We’re seeing broader revenue growth as well, with traditional servers and networking up 122%, storage up 26% and our client solutions up 20% year over year. Our second quarter results underscore the compounding benefits of our competitive advantages, the breadth of our portfolio and the strength of our operating model.”

– Jeff Clarke, Vice Chairman and Chief Operating Officer, Dell Technologies

Dell’s Infrastructure Solutions Group (ISG) reported record revenue of $31.8 billion, up 89% year over year. Traditional Servers and Networking revenue increased 122% to $10.5 billion, while storage revenue rose 26% to $4.9 billion. ISG operating income reached a record $4.8 billion, representing a 225% increase.

The company’s Client Solutions Group (CSG) also recorded growth, with revenue rising 20% to $15.0 billion. Commercial Client revenue increased 22% to $13.2 billion, while consumer revenue grew 7% to $1.8 billion. CSG operating income rose 42% to $1.1 billion.

“In our second quarter, we delivered record revenue of $47 billion, record EPS and a record $4.3 billion returned to shareholders. Our advantages reinforce one another, and throughout the quarter we used these strengths to drive growth, share gains, profitability and cash generation. With AI momentum accelerating and our opportunity expanding across the portfolio, we’re raising our full-year FY27 revenue outlook by $25 billion to $192 billion, up nearly 70% year over year.”

– David Kennedy, Chief Financial Officer, Dell Technologies

Dell returned a record $4.3 billion to shareholders during the quarter through share repurchases and dividends. The company’s board also declared a quarterly cash dividend of $0.63 per common share, payable on October 30 to shareholders of record as of October 20.

For the third quarter of fiscal 2027, Dell expects revenue of approximately $49 billion, representing an 81% year-over-year increase. The company expects GAAP diluted EPS of $6.10 and non-GAAP diluted EPS of $6.50.

Dell also raised its full-year fiscal 2027 revenue guidance from $167 billion to $192 billion, representing 69% year-over-year growth. Its AI-Optimized Servers revenue outlook increased from $60 billion to $74 billion, while full-year GAAP diluted EPS guidance was raised to $24.37 and non-GAAP diluted EPS guidance to $25.50.

The company said the updated outlook reflects accelerating AI momentum and expanding opportunities across its broader portfolio.