Key Highlights

● Second-quarter revenue reached $47.0 billion, up 58 per cent year on year.

● Record AI server orders of $60.9 billion left a $95 billion backlog.

● Full-year revenue guidance rose to $192 billion from $167 billion.

● Management raised AI server revenue guidance to $74 billion from $60 billion.

Latest results: second quarter, fiscal 2027

Dell Technologies Inc. (NYSE:DELL) published its second-quarter fiscal 2027 results on 1 September 2026, covering the quarter ended 31 July 2026. Revenue was $47.0 billion, up 58 per cent year on year, with operating income of $5.39 billion and net income of $4.13 billion. Diluted earnings per share were $6.34 on a GAAP basis and $7.04 on a non-GAAP basis. Operating cash flow was $2.23 billion, down 13 per cent, while Dell returned a record $4.3 billion through buybacks and dividends.

The previous quarter provides a useful comparison. In the first quarter of fiscal 2027, reported on 28 May 2026, Dell recorded revenue of $43.8 billion, AI-optimised server revenue of $16.1 billion and AI orders of $24.4 billion, with full-year revenue guidance then at $165 billion to $169 billion. Sequentially, revenue therefore rose by about $3.1 billion, while AI server orders more than doubled and the full-year outlook was lifted substantially. AI server revenue itself was little changed at $16.4 billion, however, so the order and backlog figures are the main evidence of future demand.

Where the growth came from

The Infrastructure Solutions Group generated $31.8 billion of revenue, up 89 per cent, with operating income of $4.78 billion. AI-optimised servers contributed $16.4 billion, traditional servers and networking $10.5 billion and storage $4.85 billion. Chief operating officer Jeff Clarke cited record AI server orders of $60.9 billion and a backlog of $95 billion at quarter end.

The Client Solutions Group, which covers PCs, posted revenue of $15.0 billion, up 20 per cent, including commercial revenue of $13.2 billion and consumer revenue of $1.8 billion. Its operating income was $1.14 billion. Traditional servers and PCs therefore also grew, which matters when judging how much of the expansion depends on AI alone.

Guidance and capital returns

Management guided to third-quarter revenue of about $49.0 billion and non-GAAP earnings per share of $6.50. For fiscal 2027, ending January 2027, it raised revenue guidance to $192 billion from $167 billion, AI server revenue guidance to $74 billion from $60 billion, and non-GAAP earnings per share to $25.50 from $17.90. These are company forecasts rather than reported results.

Dell also declared a quarterly dividend of $0.63 per share, payable on 30 October 2026 to shareholders of record on 20 October.

Market debate and analyst views

Market commentary has cited a Barclays downgrade to Equal Weight on 14 October and questions over whether AI demand or higher memory prices are driving hardware revenue. These explanations come from secondary reports.

Index context and what to watch

Dell joined the S&P 500 in September 2024, so index-tracking funds hold the shares alongside active investors. Whether the $95 billion backlog converts into revenue at pace will decide how the record orders show up in results, and cash conversion matters too, given that operating cash flow fell while earnings rose. Margin trends in the infrastructure business round out the picture.