Dell revenue jumps 58%, lifts full-year outlook sharply
SingTao · 2 SOURCES1 day ago2 MIN
Summary
Dell Technologies reported record revenue for the second quarter of fiscal 2027 after the US market closed on Tuesday, with sales and adjusted earnings both beating expectations. The company also raised its full-year revenue and adjusted earnings outlook by a wide margin, while management pointed to faster AI demand as the main driver
Key Points
- Second-quarter revenue rose 58% year on year to US$47.0 billion, or US$46.971 billion by the more precise figure cited by on.cc, above the US$44.8 billion market expectation.
- Adjusted earnings per share reached US$7.04, up 203% from a year earlier and above the US$4.90 consensus, while net profit was US$4.133 billion, up 255%.
- Dell raised fiscal 2027 full-year revenue guidance from about US$167 billion to about US$192 billion, implying roughly 69% annual growth and topping the US$173.8 billion market forecast.
- Full-year adjusted earnings per share are now projected at US$25.5, up 148% year on year and ahead of the US$19.1 market expectation
- Chief Financial Officer David Kennedy said the upgraded guidance was mainly driven by accelerating AI demand, while Chief Operating Officer Jeff Clarke said AI-optimized server sales could reach about US$74 billion this fiscal year.
- AI-optimized server revenue doubled to US$16.4 billion in the quarter, AI server orders hit a record US$60.9 billion, and backlog stood at US$95.0 billion at quarter-end
- Jeff Clarke said Dell had secured more than US$130 billion in AI server orders over the past 12 months
- Dell shares rose as much as 11.29% in after-hours trading and were last quoted at US$459.03, still up more than 8% after the results announcement
Why It Matters
For Hong Kong investors tracking US technology names, Dell’s results add to evidence that AI infrastructure spending is still expanding rapidly rather than cooling. The sharply higher guidance also suggests enterprise demand for servers remains strong enough to reshape earnings expectations and valuations across the hardware supply chain.