Dell Technologies has raised its full-year fiscal 2027 revenue forecast by $25 billion as demand for AI-optimized servers continues to accelerate. The company now expects $192 billion in revenue for the year, up 69% from the previous year.
Dell reports a record $47 billion quarter
Dell reported $47.0 billion in second-quarter revenue, a 58% increase year over year. Net income reached $4.13 billion, compared with $1.16 billion in the same quarter a year earlier.
The company’s Infrastructure Solutions Group was responsible for $31.8 billion of quarterly revenue, up 89% year over year. Operating income for the group reached $4.8 billion, an increase of 225%.
AI server orders reach $60.9 billion
Dell said it booked a record $60.9 billion in AI server orders during the quarter. AI-optimized server revenue reached $16.4 billion, doubling year over year.
The company ended the quarter with a $95 billion backlog for AI servers. Dell’s updated forecast calls for $74 billion in AI-optimized server revenue for the full fiscal year, compared with its previous estimate of $60 billion.
Dell is supplying infrastructure to AI cloud providers and other organizations building large-scale computing environments. The company says demand is extending beyond AI systems, with traditional servers, networking and storage also growing.
Traditional server and networking revenue also jumps
AI is not the only source of growth in Dell’s infrastructure business. Revenue from traditional servers and networking reached $10.5 billion in the quarter, up 122% year over year.
Storage revenue increased 26% to $4.9 billion. Together, the figures indicate that spending on data center infrastructure is expanding across both accelerated computing and conventional enterprise systems.
| Dell metric | Q2 FY2027 | Year-over-year change |
|---|---|---|
| Total revenue | $47.0 billion | +58% |
| Infrastructure Solutions Group | $31.8 billion | +89% |
| AI-optimized servers | $16.4 billion | +100% |
| Traditional servers and networking | $10.5 billion | +122% |
| Storage | $4.9 billion | +26% |
Full-year forecast rises to $192 billion
Dell previously expected approximately $167 billion in FY2027 revenue. The new midpoint of $192 billion represents a $25 billion increase and approximately 69% year-over-year growth.
Dell also raised its full-year AI-optimized server revenue forecast from $60 billion to $74 billion.
For the third quarter, Dell expects revenue of approximately $49 billion. The company expects its Infrastructure Solutions Group to grow roughly 145% year over year in the quarter, supported by approximately $19 billion in AI server revenue.
What the results mean for the server market
Dell’s results provide another indication that AI infrastructure spending remains a major source of demand for server manufacturers. The scale of the company’s backlog also points to continued orders extending beyond a single quarter.
At the same time, the growth in traditional servers, networking and storage shows that data center investment is not limited to GPU-heavy AI clusters. Enterprises and cloud operators still need conventional compute and storage infrastructure around those systems.
Dell’s updated guidance is the company’s outlook, not a guarantee of future revenue. However, the combination of record orders, a large backlog and higher AI server expectations makes the latest forecast a significant signal for the wider server hardware market.
Dell announced its second-quarter fiscal 2027 results on September 1, 2026.
