TLDR
- Dell reports Q2 fiscal 2027 earnings on September 1
- DELL stock is up 272% year-to-date, driven by AI server demand
- Q2 revenue guidance is $44B-$45B, around 50% year-over-year growth
- Q2 EPS expected at ~$4.80, representing over 100% year-over-year growth
- Wall Street holds a Moderate Buy consensus with an average price target of $519.36, implying ~11% upside
Dell Technologies (DELL) is set to report its second-quarter fiscal 2027 results on September 1. The stock has climbed 272% year-to-date, fueled by strong demand for AI servers and data center infrastructure.
Dell guided Q2 revenue of $44 billion to $45 billion, representing roughly 50% year-over-year growth at the midpoint. That kind of number would have seemed impossible not long ago.
The Infrastructure Solutions Group (ISG) is expected to carry the load again. AI server demand is coming from enterprises, neocloud providers, and sovereign customers, broadening the base beyond any single segment.
In Q1, Dell booked $24.4 billion in AI orders and recognized $16.1 billion in AI server revenue. The company ended the quarter with a record $51.3 billion AI backlog, with its pipeline running several times larger than that.
For Q2, Dell expects around $15.5 billion in AI server revenue, helping drive roughly 75% ISG revenue growth. Customer demand continues to outpace supply, meaning the backlog will likely grow further.
Earnings Outlook
Dell expects Q2 EPS of approximately $4.80, which would represent over 100% year-over-year growth. Analysts are even more optimistic, forecasting EPS growth of more than 120%.
Dell has beaten Wall Street’s EPS estimates in each of the past four quarters, including a 66% beat last quarter. That track record matters when setting expectations.
Traditional server demand is also holding up as large enterprises refresh computing environments and expand capacity. AI inference is now driving incremental demand on conventional server platforms too, widening the opportunity.
Storage is another piece of the ISG puzzle. It contributes meaningfully to segment profitability, not just revenue.
Ownership and Analyst Views
On the ownership side, public companies and individual investors hold 39.52% of DELL. ETFs account for 20.45%, mutual funds 15.46%, insiders 12.76%, and other institutional investors 11.81%.
Insider ownership at 12.76% is relatively high. Michael S. Dell holds 5.40% personally. Vanguard is the largest institutional holder at 7.94%.
Wall Street currently holds a Moderate Buy consensus on DELL, based on 12 Buy ratings and 5 Hold ratings. The average price target is $519.36, implying around 11% upside from current levels.
The highest analyst price target sits at $700, representing potential upside of about 51%.
DELL trades at 24x forward earnings. Analysts forecast 96.3% EPS growth for fiscal 2027, with double-digit growth expected in fiscal 2028.
The consensus price target of $509.86 from the Barchart data implies approximately 10% upside from current levels.
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