Dell shares rise as strong AI server demand boosts annual forecast

Dell Technologies just posted the kind of quarter that makes Wall Street forget about everything else on their screens. Revenue hit $47 billion for fiscal Q2 2027, a 58% jump from the same period a year ago, blowing past analyst expectations of $44.92 billion. Adjusted earnings per share landed at $7.04, which represents a 203% year-over-year increase and similarly embarrassed the consensus estimate of roughly $4.91. The company responded by doing what any business sitting on a tidal wave of demand would do: it raised guidance. Aggressively. Dell lifted its full-year revenue forecast to $192 billion, up from $167 billion, and bumped its adjusted EPS outlook to $25.50, a dramatic revision from $17.90. Shares climbed roughly 7% in extended trading on the results and tacked on another few percentage points in premarket the following day, bringing the total move to nearly 10%. The AI engine behind the numbers The star of the show was Dell’s Infrastructure Solutions Group, which pulled in $31.8 billion in revenue during the quarter. That’s an 89% increase year-over-year, and $16.4 billion of it came specifically from AI-optimized servers, a category that doubled compared to the prior ye...