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3w ago

Dell Raises Profit Guidance as AI Server Orders Surpass $12 Billion

Brisk AI server demand drove Dell’s backlog to $14.4 billion, supporting a full-year EPS increase to $9.40 per share.

A message reading "AI artificial intelligence," a keyboard and robot hands are seen in this illustration created on January 27, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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The Dell logo is seen on an item for sale in a store in Manhattan, New York City, U.S., November 24, 2021. REUTERS/Andrew Kelly/File Photo

Overview

  • Dell’s first-quarter revenue grew 5% year-over-year to $23.38 billion, with its Infrastructure Solutions Group revenue up 12% to $10.3 billion.
  • The company recorded $12.1 billion in AI server orders for Q1 FY2026, exceeding full fiscal 2025 shipments and boosting its backlog to $14.4 billion.
  • Dell expects to ship about $7 billion of AI server backlog in Q2 and forecasts revenue between $28.5 billion and $29.5 billion for the quarter.
  • The full-year adjusted EPS outlook was raised to $9.40 per share from $9.30, reflecting strong margins on AI-optimized systems.
  • COO Jeff Clarke cautioned that AI server demand will remain lumpy and nonlinear due to complex supply-chain and deployment dependencies.