Dell raises FY27 revenue outlook by $25 billion on AI server momentum

Dell Technologies

01/09/2026 21:14

Overview
US technology hardware firm's fiscal Q2 revenue rose 58% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q2 climbed 203% yr/yr, beating analyst expectations
Company returned $4.3 bln to shareholders through buybacks and dividends in Q2
Shares of the company were up about 8.5% in extended trading

Outlook
Dell raises full-year FY27 revenue outlook to $192 bln from $167 bln
Company expects Q3 FY27 revenue of $49 bln
Dell forecasts full-year FY27 GAAP EPS of $24.37 and non-GAAP EPS of $25.50

Result Drivers
AI SERVER DEMAND - Co said record AI-optimized server orders and revenue drove growth, with $16.4 bln in revenue and $95 bln backlog
TRADITIONAL SERVERS AND NETWORKING - Co reported traditional servers and networking revenue up 122% yr/yr
COMMERCIAL CLIENT SOLUTIONS - Commercial client revenue rose 22% yr/yr, contributing to overall client solutions group growth

Company press release: ID:nBw97fVLHa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$46.97 bln
$44.95 bln (18 Analysts)
Q2 Adjusted EPS
Beat
$7.04
$4.91 (21 Analysts)
Q2 EPS
 
$6.34
 
Q2 Adjusted Net Income
Beat
$4.59 bln
$3.19 bln (16 Analysts)
Q2 Net Income
 
$4.13 bln
 
Q2 Adjusted Operating Income
Beat
$5.93 bln
$4.18 bln (17 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the computer hardware peer group is "buy"
Wall Street's median 12-month price target for Dell Technologies Inc is $500.00, about 9.6% above its August 31 closing price of $456.01
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 23 three months ago

Reuters Recommended Reads
Sept 1 - Dell again lifts forecasts as AI demand powers record results
Sept 1 - OpenAI says upcoming model is so capable it requires stronger guardrails
Sept 1 - Data centre operator Sunevision's FY revenue rises 6% on AI demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)