Dell Technologies Inc - Class C
Q2 2027 Earnings
Market Reaction
Did DELL Beat Earnings? Q2 2027 Results
Dell Technologies delivered a blowout fiscal second quarter for 2027, posting adjusted EPS of $7.04, beating the $4.90 consensus by 43.69%, and extending its streak of consecutive quarterly EPS beats to four. Revenue of $46.97 billion exceeded the $44.44 billion estimate by 5.69% and grew 57.8% year over year, powered almost entirely by a ferocious acceleration in AI infrastructure demand. The company's AI-Optimized Servers alone generated $16.40 billion in revenue, doubling year over year, while record orders of $60.90 billion pushed the ending backlog to $95.00 billion, signaling that the demand wave shows no signs of retreating. The Infrastructure Solutions Group as a whole contributed $31.78 billion in revenue, up 89%, with operating income surging 225% to $4.78 billion. Looking ahead, Dell raised its full-year FY27 revenue guidance by $25.00 billion to $192.00 billion, up 69% year over year, with AI-Optimized Servers projected to reach $74.00 billion, while full-year non-GAAP EPS guidance of $25.50 reflects management's confidence in continued, broad-based momentum across its portfolio.
- AI-Optimized Servers revenue doubled year over year to $16.4 billion with record $60.9 billion in orders
- AI server backlog reached a record $95 billion
- Traditional Servers and Networking revenue surged 122% year over year
- Storage revenue grew 26% year over year
- Commercial Client revenue grew 22% year over year
- Non-GAAP operating margin expanded to 12.6% from 7.7% year over year
- ISG operating margin expanded to 15.0% from 8.8% year over year
“IT environments have shifted from cost centers to value drivers that fuel growth and competitive advantage, and customers are investing accordingly – creating opportunity across our portfolio. That's clearest in our AI server business where we booked a record $60.9 billion in orders, recognized a record $16.4 billion in revenue and exited the quarter with a record $95 billion backlog. We're seeing broader revenue growth as well, with traditional servers and networking up 122%, storage up 26% and our client solutions up 20% year over year. Our second quarter results underscore the compounding benefits of our competitive advantages, the breadth of our portfolio and the strength of our operating model.”
Dell Technologies CEO, on the earnings call
Forward Guidance & Outlook
Dell raised its full-year FY27 revenue guidance by $25 billion to $192.0 billion (up 69% YoY), with AI-Optimized Servers revenue expected at $74.0 billion (up 200% YoY). Full-year GAAP diluted EPS guidance was raised to $24.37 (up 181% YoY) and non-GAAP diluted EPS to $25.50 (up 148% YoY). For Q3 FY27, the company guides revenue of $49.0 billion (up 81% YoY), GAAP diluted EPS of $6.10 (up 168% YoY), and non-GAAP diluted EPS of $6.50 (up 151% YoY). Management highlighted accelerating AI momentum and expanding opportunity across the full portfolio as drivers of the raised outlook.
DELL YoY Financials
DELL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.