Key Highlights

  • Dell reported second-quarter fiscal 2027 Revenue of $46.971 billion, up 58 per cent, with AI server orders of $60.9 billion and an AI server Backlog of $95 billion.
  • Non-GAAP Diluted Earnings per Share were $7.04, up 203 per cent, while Cash Flow from operations was $2.225 billion.
  • Full-year revenue guidance was raised to about $192.0 billion from $167.0 billion.

A quarter built on AI servers

Dell Technologies Inc. (NYSE:DELL) reported second-quarter fiscal 2027 results on 1 September 2026 for the quarter ended 31 July. Revenue was $46.971 billion, up 58 per cent year on year. The figure reflects how quickly Demand for artificial intelligence infrastructure has reshaped the company's mix.

The Infrastructure Solutions Group generated $31.782 billion of revenue, up 89 per cent, while the Client Solutions Group delivered $15.034 billion, up 20 per cent. Dell booked $60.9 billion of AI server orders in the quarter and reported an AI server backlog of $95 billion.

Those two numbers are linked but distinct. Orders show demand won during the period, while backlog represents contracted systems not yet delivered, so both indicate how much future revenue is already secured, subject to delivery timing.

Profitability and cash flow

GAAP Operating Income was $5.385 billion, up 204 per cent, and non-GAAP operating income was $5.929 billion. By segment, infrastructure operating income was $4.781 billion and client operating income was $1.142 billion.

Diluted earnings per share were $6.34 on a GAAP basis, up 273 per cent, and $7.04 non-GAAP, up 203 per cent. Cash flow from operations was $2.225 billion. That is a smaller number than operating income would suggest, which is a common feature when Working Capital absorbs cash during rapid growth in large systems shipments.

Dell also declared a quarterly Dividend of $0.63 per common share, payable on 30 October to holders of record on 20 October.

Guidance

The outlook below is company guidance, not reported performance. For the third quarter of fiscal 2027, Dell guided to revenue of about $49.0 billion, GAAP diluted earnings per share of $6.10 and non-GAAP diluted earnings per share of $6.50.

For the full year, guidance was raised. Revenue is now expected to be about $192.0 billion, from $167.0 billion previously. AI-optimised server revenue is guided to $74.0 billion, from $60.0 billion. GAAP diluted earnings per share is guided to $24.37, from $17.31, and non-GAAP to $25.50, from $17.90.

Because the backlog converts to revenue only as systems are delivered and accepted, timing of shipments and component availability will influence how quickly the stated figures are realised.

What to watch

Items to track in the next report include conversion of the $95 billion backlog into revenue, whether new AI orders continue near the $60.9 billion level, infrastructure Operating Margin relative to the $4.781 billion profit reported, and the contribution of the client PC business, which grew 20 per cent.

Cash conversion is another. A widening gap between reported profit and Operating Cash Flow over several consecutive quarters would merit closer attention.