Dell Raises Fiscal 2027 Forecasts on Record AI Server Demand

Shares of Dell Technologies rose approximately 10% in extended trading on September 1, 2026, after the company reported record fiscal second-quarter results that exceeded Wall Street expectations. Dell reported revenue of $46.97 billion and adjusted earnings per share of $7.04, beating analyst projections of $44.44 billion in revenue. The company's Infrastructure Solutions Group saw revenue jump 89% to $31.78 billion, with AI-optimized servers contributing $16.4 billion.

Driven by this momentum, Dell raised its full-year fiscal 2027 revenue guidance to $192 billion and adjusted earnings per share to $25.50. The company now expects annual AI-optimized server revenue to reach $74 billion. Additional growth drivers included a $9.7 billion software contract with the U.S. military and a $1.6 billion hardware agreement with cloud provider Iren.

These results follow a volatile period for the stock, which had risen over 250% in 2026 but experienced a 6% selloff immediately preceding the earnings call. Investors had been concerned about whether Dell could pass rising memory component costs to customers and manage supply constraints. In a related sector trend, Nvidia reported a 106% year-over-year revenue increase for its own fiscal second quarter, signaling sustained demand for the AI chips that power Dell's server infrastructure.