Overview
- Citing its fiscal second-quarter results released after the close on Tuesday, Dell reported about $47.0 billion in revenue and $7.04 of adjusted earnings per share and said it booked $60.9 billion in AI server orders and left the quarter with a $95 billion AI backlog.
- The company raised full‑year FY27 revenue guidance to $192 billion and boosted adjusted EPS guidance to $25.50 because management said accelerating AI demand is expanding its addressable market.
- Dell recognized $16.4 billion of AI‑optimized server revenue in the quarter, a roughly 100% year‑over‑year increase that signals strong enterprise and cloud customer buying of rack systems built around Nvidia chips.
- Markets reacted strongly with the stock jumping about 9–10% in extended and premarket trading and several brokerages lifting price targets as analysts praised the order book while noting high expectations.
- Analysts and industry reports warn that conversion of the huge backlog could be constrained by component shortages—especially high‑bandwidth memory—GPU availability and rising costs, a dynamic that will affect margins and delivery timing and that could shift value across the semiconductor and systems supply chain.