TLDR
- Dell reported adjusted EPS of $7.04, beating estimates of $4.91 by a wide margin
- Revenue hit a record $47 billion, up 58% year over year, beating estimates of $44.9 billion
- AI-Optimized Servers revenue reached $16.4 billion, doubling from the prior year
- Dell booked a record $60.9 billion in AI server orders and holds a $95 billion backlog
- Full-year revenue guidance raised to $192 billion, up from $167 billion
Dell Technologies posted a blowout quarter and the market noticed fast. The stock jumped as much as 10% in after-hours trading on Tuesday after fiscal Q2 results came in well ahead of Wall Street expectations.
Dell reported adjusted earnings of $7.04 per share for its fiscal second quarter of 2027. That crushed analyst estimates of $4.91 per share. A year ago, the same figure was $2.32 per share, making this a 203% jump year over year.
Revenue for the quarter came in at a record $47 billion, beating analyst estimates of $44.9 billion. That figure is up 58% from the $29.8 billion Dell posted in the same quarter last year.
The stock was trading around $425 at the close on Tuesday before jumping to $467 in after-hours.
$DELL TECHNOLOGIES Q2’27 EARNINGS HIGHLIGHTS
🔹 Revenue: $47.0B (Est. $44.92B) 🟢; +58% YoY
🔹 Adj. EPS: $7.04 (Est. $4.91) 🟢; +203% YoY
🔹 AI-Optimized Servers Revenue: $16.4B (Est. $16B) 🟢; +100% YoY
🔹 ISG Revenue: $31.8B (Est. $29.8B) 🟢; +89% YoYRaises FY27 Guide:
🔹… pic.twitter.com/ORJkuaqY6L— Wall St Engine (@wallstengine) September 1, 2026
Dell’s AI server business was the clear engine of growth. AI-Optimized Servers revenue hit $16.4 billion in the quarter, a 100% increase from the prior year.
The company also booked a record $60.9 billion in AI server orders during the quarter. Dell exited the period with a record $95 billion backlog in that business alone.
“IT environments have shifted from cost centers to value drivers that fuel growth and competitive advantage,” said Jeff Clarke, chief operating officer of Dell, in the earnings release.
Guidance Gets a Major Lift
Dell raised its full-year revenue outlook to $192 billion, up from its previous guidance of $167 billion. That new figure is well above the $174 billion analysts had been expecting.
Clarke pointed to AI demand as the driver. “With AI momentum accelerating and our opportunity expanding across the portfolio, we’re raising our full-year FY27 revenue outlook by $25 billion to $192 billion, up nearly 70% year over year,” he said.
Traditional server, networking, and storage businesses also posted growth in the quarter, adding breadth to the results.
High Bar, Higher Results
The expectations heading into this report were already steep. DELL is up more than 230% year to date, and was trading at about 20.3 times forward earnings before the print. That is well above its five-year average of 10.9 times forward earnings.
That kind of valuation leaves little room for error, yet Dell cleared the bar comfortably.
Peer Hewlett Packard Enterprise, which is also up around 110% year to date, also moved higher in after-hours trading following Dell’s results.
Other hardware names have been putting up strong numbers too. Super Micro Computer reported better-than-expected fiscal Q4 earnings on August 11 and gave a positive full-year outlook. Cisco Systems also reported solid results recently, with AI hardware demand cited as a key factor.
Dell exited the fiscal second quarter with a $95 billion AI server backlog, the highest in company history.
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