Dell Q2 2027: $95 Billion AI Backlog and an Earnings Beat
As seen on the 24/7 Wall St. homepage on September 1, 2026.
A record $95 billion AI server backlog means the next several quarters are already largely spoken for. Management raised full-year revenue guidance to $192 billion.
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Dell Technologies posted adjusted earnings per share of $7.04 for its fiscal second quarter of 2027, well ahead of the consensus estimate as artificial intelligence infrastructure demand accelerated across the business.
AI-Optimized Servers revenue doubled year over year, and record AI server orders in the quarter pushed the ending backlog to a record $95 billion. That backlog effectively pre-funds multiple future quarters of revenue before a single new order is taken.
The strength was not confined to AI hardware. Traditional servers and networking, storage, and the Client Solutions Group all grew, while non-GAAP operating margin expanded to 12.6% from 7.7% a year earlier.
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Management raised full-year FY27 revenue guidance to $192 billion and guided Q3 FY27 revenue higher, with AI-Optimized Servers carrying the increase. Dell also returned a record $4.3 billion to shareholders in the quarter through repurchases and dividends.
One figure worth monitoring alongside the revenue surge is free cash flow, which declined 47% year over year to $986 million despite the record top line. Capital expenditures rose as the company scales capacity to meet AI demand. Investors will want to track whether backlog conversion lifts cash generation.
Mentioned: DELL