Dell Reports $51.3 Billion AI Backlog Ahead of Earnings

Dell Technologies Inc. reported a significant AI backlog of $51.3 billion and quarterly AI orders totaling $24.4 billion. The company has pivoted its business model toward the artificial intelligence sector by providing servers and infrastructure for data centers.

Market attention is now focused on the company's fiscal 2027 second-quarter earnings results, scheduled for release after the market closes on Tuesday, September 1. Analysts are evaluating whether the surge in demand will translate into higher profits, specifically noting the impact of lower-margin AI servers on the overall mix and whether Infrastructure Solutions Group margins can improve from 10.5%.

Following a previous increase in FY27 revenue guidance by $27 billion at the midpoint, some analysts expect another raise. A Bank of America analyst predicts the company may increase its full-year guidance to a range of $171 billion to $175 billion, particularly for AI server revenue previously projected at $60 billion. This optimism follows strong industry reports from Nvidia and Super Micro Computer, indicating sustained demand for AI infrastructure.