Dell again lifts annual forecasts as AI demand powers record results

Dell Technologies on Tuesday boosted its annual revenue forecast by $25 billion while also raising its profit outlook for the second time this year, driven by soaring demand for its AI servers.

Dell's shares rose 7% in extended trading.

The servers, equipped with Nvidia's chips, are sought by clients including AI cloud ‌providers Nscale and ⁠CoreWeave ⁠to build computing clusters for training and running AI models.


Dell has also protected its ​margins from the effects of a memory chip shortage in the industry by hiking ​prices of its products including personal computers.

"Demand is broadening across neoclouds, sovereigns, and enterprise customers, and our customer count has surpassed 6,500," Chief ​Operating Officer Jeff Clarke said on a post-earnings ⁠call that ‌was disrupted by a technical issue for about ​10 minutes.

"Over the ​past 12 months, we have booked more than $130 ⁠billion in AI server orders," he said.

Nvidia's and Super ​Micro's forecasts last month had bolstered investor confidence in ​the resilience of the AI boom.

Dell raised its annual revenue outlook to $192 billion from $167 billion and adjusted earnings per share forecast to $25.50 from its earlier expectations of $17.90.

The company, whose shares have more than tripled this year, now expects fiscal 2027 revenue for AI-optimized servers to be $74 ‌billion, up from its prior projection of $60 billion.

Its second-quarter revenue rose 58% to a record $47 billion, exceeding an LSEG-compiled ​estimate of $44.92 ​billion. Adjusted earnings of $7.04 ⁠per share topped estimates of $4.91.

Sales at Dell's PC segment rose 20%, driven by commercial clients, echoing growth at HP. Clarke said the PC unit's ​revenue is growing at its fastest rate in five years.

Revenue from Dell's unit that includes its storage, software and server offerings jumped 89%. Sales from traditional servers and networking more than doubled as customers upgraded infrastructure and demand rose for CPU-based servers handling agentic workloads.