Overview
- Dell posted roughly $47 billion in fiscal Q2 FY27 revenue and non‑GAAP EPS of $7.04, handily beating expectations and led by record Infrastructure Solutions Group sales.
- The company booked $60.9 billion in AI‑server orders in the quarter and finished with a $95 billion AI backlog that management said is about 70%–80% convertible into revenue over FY27–FY28.
- Management raised full‑year revenue guidance to $192 billion and lifted EPS guidance to $25.50 as executives cited sustained enterprise and cloud AI spending.
- Markets and analysts reacted positively, with Goldman Sachs raising its price target to $570 and the stock jumping, while institutional investors have materially increased holdings over the past year.
- Analysts warn conversion and profitability risks remain because operating margin held near 11.5%, operating cash flow fell to about $2.23 billion (down ~13% year over year), and GPU and high‑bandwidth memory shortages or cost pressure could slow deliveries and margin expansion.