Global Finance News
02 Sep 2026, 09:07
Dell Stock Surges 10% as AI Server Demand Drives Record Revenue and Massive Guidance Raise
Dell Technologies (NYSE: DELL) shares jumped about 10% in premarket trading Wednesday after the company reported record fiscal second-quarter results and sharply raised its full-year outlook, fueled by extraordinary demand for AI infrastructure.
Second-quarter revenue surged 58% year over year to a record $47.0 billion. Diluted EPS jumped 273% to $6.34, while non-GAAP EPS climbed 203% to a record $7.04. Dell also generated $2.2 billion in operating cash flow.
The biggest catalyst was Dell’s AI server business. AI-optimized server revenue doubled to a record $16.4 billion, while the company booked $60.9 billion of AI server orders during the quarter and exited with a massive $95 billion backlog. Infrastructure Solutions Group revenue consequently surged 89% to $31.8 billion, while ISG operating income increased 225% to $4.8 billion.
Growth also extended beyond AI. Traditional server and networking revenue jumped 122%, storage increased 26%, and Client Solutions Group revenue rose 20% to $15.0 billion. Commercial client revenue reached a record $13.2 billion, up 22%.
The strongest reason for the premarket rally, however, appears to be Dell’s dramatically higher outlook. The company raised FY2027 revenue guidance by $25 billion, from $167 billion to $192 billion, implying approximately 69% annual growth. Dell also increased its AI-optimized server revenue forecast from $60 billion to $74 billion and now expects non-GAAP EPS of $25.50, up 148% year over year.
The results strengthen Dell’s position as one of the major beneficiaries of the global AI infrastructure buildout. The combination of a $95 billion AI backlog, rapidly expanding server revenue, sharply higher earnings and a major guidance increase suggests that AI data-center spending is translating into substantial near-term revenue and profit growth rather than remaining primarily a future opportunity.
Dell Technologies (NYSE: DELL) shares jumped about 10% in premarket trading Wednesday after the company reported record fiscal second-quarter results and sharply raised its full-year outlook, fueled by extraordinary demand for AI infrastructure.
Second-quarter revenue surged 58% year over year to a record $47.0 billion. Diluted EPS jumped 273% to $6.34, while non-GAAP EPS climbed 203% to a record $7.04. Dell also generated $2.2 billion in operating cash flow.
The biggest catalyst was Dell’s AI server business. AI-optimized server revenue doubled to a record $16.4 billion, while the company booked $60.9 billion of AI server orders during the quarter and exited with a massive $95 billion backlog. Infrastructure Solutions Group revenue consequently surged 89% to $31.8 billion, while ISG operating income increased 225% to $4.8 billion.
Growth also extended beyond AI. Traditional server and networking revenue jumped 122%, storage increased 26%, and Client Solutions Group revenue rose 20% to $15.0 billion. Commercial client revenue reached a record $13.2 billion, up 22%.
The strongest reason for the premarket rally, however, appears to be Dell’s dramatically higher outlook. The company raised FY2027 revenue guidance by $25 billion, from $167 billion to $192 billion, implying approximately 69% annual growth. Dell also increased its AI-optimized server revenue forecast from $60 billion to $74 billion and now expects non-GAAP EPS of $25.50, up 148% year over year.
The results strengthen Dell’s position as one of the major beneficiaries of the global AI infrastructure buildout. The combination of a $95 billion AI backlog, rapidly expanding server revenue, sharply higher earnings and a major guidance increase suggests that AI data-center spending is translating into substantial near-term revenue and profit growth rather than remaining primarily a future opportunity.
