Highlights
- Dell increased fiscal second-quarter revenue by 58% to USD 47.0 billion, with infrastructure contributing the largest share.
- AI server orders reached USD 60.9 billion, while management reported a quarter-end backlog of USD 95 billion.
- Operating cash flow fell 13% to USD 2.23 billion as Dell returned USD 4.3 billion to shareholders.
- Management raised fiscal revenue guidance to USD 192 billion and forecast USD 74 billion in AI server revenue.
A USD 95 billion AI server backlog gave Dell Technologies (NYSE:DELL) a larger order base at the end of its second quarter of fiscal 2027. Results released on 1 September 2026 showed revenue and profit rising alongside that demand. Operating cash flow nevertheless declined, leaving a different picture from the sharp expansion in reported earnings and the substantial increase in management's annual guidance.
Infrastructure Drives the Expansion
Revenue for the quarter ended 31 July 2026 reached USD 47.0 billion, up 58% year on year. Operating income was USD 5.39 billion and net income totalled USD 4.13 billion. GAAP diluted earnings per share were USD 6.34, compared with non-GAAP diluted earnings per share of USD 7.04.
The Infrastructure Solutions Group generated USD 31.8 billion of revenue, an 89% increase, and operating income of USD 4.78 billion. AI-optimised servers contributed USD 16.4 billion, traditional servers and networking USD 10.5 billion, and storage USD 4.85 billion.
Chief operating officer Jeff Clarke cited record AI server orders of USD 60.9 billion. The backlog represents orders awaiting conversion into revenue; it is separate from sales already recognised during the quarter.
Orders Accelerate Beyond Current Shipments
The preceding quarter generated revenue of USD 43.8 billion, including USD 16.1 billion from AI-optimised servers. AI orders in that period were USD 24.4 billion.
Those figures show a much larger sequential increase in new AI orders than in recognised AI server revenue. Quarterly AI server sales moved to USD 16.4 billion, while total company revenue increased by approximately USD 3.1 billion. Delivery against the backlog therefore remains an important part of the operating picture.
The Client Solutions Group also expanded. Revenue rose 20% to USD 15.0 billion, comprising USD 13.2 billion from commercial customers and USD 1.8 billion from consumers. Segment operating income was USD 1.14 billion.
Cash Flow and Shareholder Payments Diverge
Operating cash flow was USD 2.23 billion, down 13%, even as reported earnings increased. Dell returned a record USD 4.3 billion through repurchases and dividends during the quarter.
The company separately declared a quarterly dividend of USD 0.63 per share, payable on 30 October 2026 to shareholders recorded on 20 October. The contrast between earnings, operating cash generation and capital returns makes cash conversion a relevant measure alongside revenue growth.
Annual Forecasts Move Higher
Management guided third-quarter revenue to approximately USD 49.0 billion and non-GAAP earnings per share to USD 6.50. For fiscal 2027, ending in January 2027, it raised revenue guidance to USD 192 billion from USD 167 billion.
The annual AI server revenue forecast increased to USD 74 billion from USD 60 billion. Non-GAAP earnings per share guidance rose to USD 25.50 from USD 17.90. These are management expectations rather than completed outcomes. The pace of backlog conversion and infrastructure margins will determine how the reported results compare with those forecasts.






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