Dell Raises Annual Revenue Forecast to $192 Billion on AI Demand

Dell Technologies reported record fiscal second-quarter results on September 1, 2026, driven by a massive surge in demand for artificial intelligence infrastructure. The company posted revenue of $46.97 billion and adjusted earnings per share of $7.04, both significantly exceeding Wall Street expectations. The Infrastructure Solutions Group saw revenue jump 89% to $31.8 billion, with AI-optimized server revenue doubling to $16.4 billion.

Following these results, Dell raised its full-year fiscal 2027 revenue guidance by $25 billion to $192 billion and increased its adjusted earnings per share target to $25.50. The company now expects annual AI-optimized server revenue to reach $74 billion. This growth is supported by a record $95 billion AI backlog, including $60.9 billion in new orders booked during the July quarter.

Beyond server sales, Dell secured a $9.7 billion software contract with the United States military and a $1.6 billion hardware agreement with cloud provider Iren. The company's AI servers, which utilize Nvidia chips, are seeing high demand from cloud providers such as CoreWeave and Nscale to support large language models.

Shares of Dell rallied approximately 10% in extended and pre-market trading following the announcement. This follows a year of significant volatility and growth, with the stock increasing more than 250% in 2026. The company's performance mirrors a broader trend in the AI sector, where Nvidia also reported a 106% year-over-year revenue increase in its own fiscal second quarter.