Dell lifts forecasts again as AI demand drives record results

Dell Technologies has raised its forecasts again as technology companies pour billions into data centers and demand for AI servers continues to surge.

The Round Rock, Texas-based company increased its annual revenue and profit outlook for the second time this year. Its shares rose about 6% in extended trading after the announcement. Dell now expects fiscal 2027 revenue from AI-optimized servers to reach $74 billion, compared with its previous forecast of $60 billion.

The company also lifted its annual revenue outlook by $25 billion to $192 billion. Its forecast for adjusted earnings per share rose to $25.50 from $17.90. Dell’s second-quarter revenue reached a record $47 billion, exceeding the $44.92 billion average estimate compiled by LSEG. Adjusted earnings per share came in at $7.04, above the $4.91 estimate.

Dell and smaller rival Super Micro Computer supply AI-optimized servers to cloud providers including Nscale and CoreWeave. The systems use Nvidia chips to provide the computing power needed to train and run AI models such as OpenAI’s ChatGPT. Strong forecasts from Nvidia and Super Micro last month had reinforced investor confidence in continued AI spending.

Dell forecast third-quarter revenue of $49 billion and adjusted earnings per share of $6.50. Analysts had expected $41.42 billion and $4.48, respectively. Chief Financial Officer David Kennedy said the company had used its advantages to drive growth, gain market share, improve profitability and generate cash.

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Our advantages reinforce one another, and throughout the quarter we used these strengths to drive growth, share gains, profitability and cash generation.