Dell Technologies shares climbed about 9% in after-hours trading Tuesday after the computer maker delivered fiscal second-quarter results and guidance that came in well ahead of Wall Street expectations.
Revenue rose roughly 58% year over year for the quarter ended July 31, according to a company statement, beating every analyst estimate tracked by LSEG. Net income came to $4.13 billion, or $6.34 per share, up from $1.16 billion, or $1.70 per share, in the same period last year. The adjusted earnings figure excludes the impact of stock-based compensation.
Guidance boosts
For the fiscal third quarter, Dell forecast $6.50 in adjusted earnings per share on $49.0 billion in revenue, implying 81% growth. Analysts polled by LSEG had expected $4.49 per share and $41.42 billion in revenue.
The company also raised its full-year outlook. Dell now expects $25.50 in adjusted earnings per share on $192 billion in revenue. Analysts were looking for $18.92 per share and $172.67 billion. In May, Dell had guided to $17.90 in adjusted EPS and revenue of $165 billion to $169 billion for fiscal 2027.
Jeff Clarke, Dell’s operating chief, said on a conference call with analysts that price increases tied to rising input costs are embedded in the elevated revenue guidance.
AI infrastructure strength
Dell’s Infrastructure Solutions Group, which focuses on data center hardware, posted $31.78 billion in fiscal second-quarter revenue, up 89% and above the $29.61 billion consensus from StreetAccount. Within that segment, the company generated $16.40 billion from AI-optimized servers, topping StreetAccount’s $16.07 billion estimate.
Storage revenue rose almost 26% to $4.85 billion. Traditional servers and networking equipment jumped 122% to $10.53 billion.
“We are seeing a growing trend of customers that require meaningful CPU compute capacity to support AI and agentic workflows,” Clarke said, noting that those workloads are creating incremental demand for traditional servers.
The Client Solutions Group, which sells PCs and accessories, contributed $15.03 billion in revenue, up 20% but slightly below StreetAccount’s $15.08 billion consensus. Clarke said Dell had earlier this year noticed the PC market softening in the second half, so the company optimized its resources toward the infrastructure business.
Big contracts and AI outlook
During the quarter, Dell received a $9.7 billion contract to provide software to the U.S. military. Separately, AI-centric cloud provider Iren agreed to buy $1.6 billion in Dell hardware, including servers with Nvidia chips.
Dell now expects $74 billion in AI-optimized server sales for the fiscal year, which would be up 200%. Just six months ago, the company had predicted 103% growth.
Shares had already gained 236% year to date through Tuesday’s close, versus an 11% rise in the S&P 500. The stock has been a popular way to play the growth of AI infrastructure. In July, President Trump—who has bought Dell shares since returning to office—again recommended Dell computers.
Michael Dell, founder and CEO, is now the world’s fifth richest person, according to Bloomberg calculations. After the results were released, he posted on X: “If you keep growing EPS 200%+ y/y something good will happen.”
Source: www.cnbc.com — https://www.cnbc.com/2026/09/01/dell-q2-earnings-report-2027.html
This article is for informational purposes only and does not constitute financial, investment, tax, or legal advice. Do your own research and consult a licensed professional before making financial decisions.
