Dell Technologies Triples AI Server Revenue Forecast to $74B as Demand Surges Past Expectations

Dell shares gain after strong AI server demand boosts annual forecast

Sept 2 (Reuters) - Dell Technologies' (DELL.N), opens new tab shares climbed nearly 10% in premarket trading on Wednesday, as strong demand for its AI-optimized servers powered an increase in its annual revenue and profit forecasts. AI infrastructure companies have benefited from rising demand as tech firms and hyperscalers ramp up investments in data centers to support large language models and other AI applications. Peer Super Micro Computer had also reported upbeat results last month. "The AI momentum spoke for itself," said analysts at ⁠J.P.Morgan, noting Dell's record $60 billion of orders and $95 billion backlog in the quarter. Dell's servers, equipped with Nvidia's (NVDA.O), opens new tab chips, are sought by clients, including AI cloud providers Nscale and CoreWeave (CRWV.O), opens new tab, to build computing clusters for training and running AI models. "Storage strength is really playing a role and it seems sustainable as AI is driving fundamental growth in Dell's most profitable business," said analysts at Melius Research. The brokerage raised its price target on ⁠the stock to $735, the highest among the analysts tracked by LSEG. Dell raised its annual revenue forecast to $192 billion from $167 billion, and adjusted earnings per share target to $25.50 from $17.90 earlier. Its second-quarter revenue jumped 58% to a record $47 billion, surpassing ⁠Wall Street estimate of $44.92 billion. Shares of other AI server makers, including Super Micro (SMCI.O), opens new tab and Hewlett Packard Enterprise (HPE.N), opens new tab, were up 0.7% and 5.4%, respectively, following Dell's results. Dell ⁠is set to add about $26 billion in market value at the current share price of $465, if gains hold. Its shares were trading at 18.12 ⁠times expected earnings over the next 12 months, according to LSEG data. That compares with 12.56 and 8.06 for HPE and Super Micro, respectively. Reporting by Kanchana Chakravarty in Bengaluru; Editing by Shilpi Majumdar Our Standards: The Thomson Reuters Trust Principles., opens new tab

Dell surges 5% after lifting fiscal 2027 forecast on AI server strength

* Dell's quarterly revenue came in above all analyst estimates. * The computer maker now sees AI server revenue tripling in the full fiscal year. Six months ago, it had been expected the total to merely double. In this article * IREN * DELL Follow your favorite stocksCREATE FREE ACCOUNT Michael Dell, chairman and chief executive officer of Dell Inc., speaks during the Dell Technologies World Annual Convention event in Las Vegas, Nevada, US, on Monday, May 18, 2026. Ian Maule | Bloomberg | Getty Images Dell Technologies shares moved 5% higher in extended trading on Tuesday after the computer maker reported results and a forecast that easily cleared Wall Street expectations. Here's how the company did relative to LSEG consensus: * Earnings per share: $7.04 adjusted vs. $4.92 expected * Revenue: $46.97 billion vs. $44.92 billion expected Revenue came in higher than every estimate, growing about 58% year over year for the fiscal second quarter, which ended on July 31, according to a statement. Net income of $4.13 billion, or $6.34 per share, increased from $1.16 billion, or $1.70 per share, in the same quarter a year ago. Adjusted earnings exclude impact from stock-based compensation. For the fiscal third quarter, Dell called for $6.50 in adjusted earnings per share on $49.0 billion in revenue, which implies 81% growth. Analysts polled by LSEG had anticipated $4.49 per share and $41.42 billion in revenue. Dell ratcheted up its full-year view. The company now sees $25.50 in adjusted earnings per share on $192 billion in revenue. Analysts surveyed by LSEG were expecting $18.92 per share and $172.67 billion in revenue. As of May, the company's 2027 guidance included $17.90 in adjusted earnings per share, with $165 billion to $169 billion in revenue. As of Tuesday's close, Dell shares had gained 236% year to date, while the wider S&P 500 index is up 11% over the same period. The stock has become a popular choice for investors who want to bet on the continuing growth of artificial intelligence infrastructure. In July President Trump, who has bought Dell shares since returning to office last year, again recommended buying Dell computers. Michael Dell, the company's founder, chairman and CEO, is now the world's fifth richest person, according to Bloomberg calculations. The company's Infrastructure Solutions Group targeting data center hardware posted $31.78 billion in fiscal second-quarter revenue, up 89% and more than the $29.61 billion consensus among analysts polled by StreetAccount. In that segment, Dell generated $16.40 billion in revenue from AI-optimized servers. The sum was above StreetAccount's $16.07 billion consensus. Revenue from traditional servers and networking equipment jumped 122% to $10.53 billion. Storage revenue, at $4.85 billion, went up almost 26%. Dell's Client Solutions Group, which sells PCs and accessories to consumers and commercial clients, contributed $15.03 billion in revenue. The number was up 20% but slightly lower than StreetAccount's $15.08 billion consensus. During the quarter, Dell received a $9.7 billion contract to provide software to the U.S. military, and AI-centric cloud infrastructure provider Iren said it agreed to buy $1.6 billion in Dell hardware, including servers that contain Nvidia chips. Dell now foresees $74 billion in AI-optimized server sales for the fiscal year, which would be up 200%. Just six months ago, the company had predicted 103% growth. Executives will discuss the results with analysts starting at 4:30 p.m. ET. watch now VIDEO2:2202:22 Piper Sandler's James Fish looks ahead to Dell earnings Tuesday Closing Bell: Overtime Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Dell again lifts forecasts as AI demand powers record results

Sept 1 (Reuters) - Dell Technologies (DELL.N), opens new tab on Tuesday boosted its annual revenue and profit forecasts for the second time this year, driven by soaring demand for its AI servers from technology companies pouring billions into data centers. Shares of the Round Rock, Texas-based company rose about 6% in extended trading. Dell, ⁠along with smaller rival Super Micro Computer (SMCI.O), opens new tab, is a key supplier of AI-optimized servers that are used by AI cloud providers such as Nscale and CoreWeave (CRWV.O), opens new tab for building computing clusters. Those servers are equipped with Nvidia's (NVDA.O), opens new tab cutting-edge chips that provide the computing power essential for training and running AI models like OpenAI's ChatGPT. Nvidia's and Super Micro's strong forecasts last month had bolstered investor confidence in the resilience of the AI boom. S&P Global Ratings projected that AI infrastructure spending would ⁠surpass $1.3 trillion by 2027, signaling further demand for AI equipment makers. Dell, whose shares have more than tripled this year, now expects fiscal 2027 revenue for AI-optimized servers of $74 billion, up from its prior expectations of $60 billion. The company also raised its annual revenue ⁠outlook by $25 billion to $192 billion and adjusted earnings-per-share forecast to $25.50 from its earlier expectations of $17.90. Revenue for the second quarter was a record $47 billion, exceeding LSEG-compiled analysts' average estimate ⁠of $44.92 billion. Adjusted EPS of $7.04 also topped estimates of $4.91. "Our advantages reinforce one another, and throughout the quarter we used these strengths to drive growth, share ⁠gains, profitability and cash generation," said CFO David Kennedy. The company projected third-quarter revenue of $49 billion and adjusted EPS of $6.50, both above analysts' estimates of $41.42 billion and $4.48, respectively. Reporting by Jaspreet Singh in Bengaluru; Editing by Sahal Muhammed Our Standards: The Thomson Reuters Trust Principles., opens new tab

Dell Technologies Q2 FY27 earnings beat on AI server demand

The fiscal second quarter, which closed on July 31, saw revenue climb 58% compared with the prior year to $46.97 billion. Adjusted earnings per share came in at $7.04, up 203% from the same period a year ago. Analysts had expected $44.92 billion in revenue and $4.91 in adjusted EPS, according to CNBC. For the full fiscal year ending January 2027, the company now expects revenue of approximately $192 billion -- up $25 billion from its prior outlook -- and $74 billion from AI-optimized server sales. Full-year adjusted EPS guidance was raised to $25.50 from the prior forecast of $17.90. For the fiscal third quarter, Dell projected $49 billion in revenue and adjusted EPS of $6.50. Analysts had expected $41.42 billion in revenue and $4.48 in adjusted EPS for that period, according to CNBC.

Dell's AI servers sell like hot cakes again, driving a stunning earnings beat

Dell's AI servers sell like hot cakes again, driving a stunning earnings beat Shares of the personal computer and data center server maker Dell Technologies Inc. were up more than 6% in late trading today after it reported earnings and revenue that easily beat expectations. The company reported second-quarter earnings before certain costs such as stock compensation of $7.04 per share, breezing past Wall Street's target of just $4.92 per share by a wide margin. Revenue for the period also came in higher, reaching $46.97 billion compared to the consensus estimate of just $44.92 billion, up an impressive 58% from the same period last year. With such strong results, Dell's profitability soared almost four-times higher, with net profit rising from $1.16 billion in the year-ago period to $4.13 billion today. Dell sees more good things coming too. For the third-quarter, it's forecasting earnings of around $6.50 per share on sales of $49 billion at the midpoint of its guidance range, implying growth of 81%. That compared to Wall Street's consensus of earnings of just $4.49 per share on sales of $41.42 billion. On a conference call with analysts, Dell Chief Operating Officer Jeff Clarke (pictured) said the company was elevating its annual revenue guidance after raising its prices to account for rising component costs. As a result, the full-year picture looks brighter than ever, for Dell upped its annual forecast. The company said it now sees earnings coming to $25.50 per share on total sales of $192 billion, up from its earlier guidance of $17.90 per share in earnings and $165 billion in sales. Wall Street, in contrast, is looking for full-year earnings of just $18.92 per share on sales of $172.67 billion. Dell's stock had declined more than 6% during the regular trading session this morning before clawing back those losses following today's report. Nonetheless, it's still up an incredible 236% in the year to date, compared to the broader S&P 500 Index's gain of just 11% over the same timeframe. Dell is benefiting from investors wanting to find new ways to bet on the growth of artificial intelligence. The company is one of the world's biggest manufacturers of the AI servers capable of running the most powerful large language models. It was also boosted in July when U.S. President Donald Trump, who owns a substantial number of its shares, recommended that consumers and businesses alike go out and buy its computers. Dell's founder Michael Dell, who serves as its chairman and chief executive officer, now ranks fifth overall in Bloomberg's list of the world's wealthiest individuals. Digging into the company's results, there were no surprises to see where most of the growth came from. Dell's Infrastructure Solutions Group, which accounts for sales of data center hardware like servers, storage arrays and networking equipment, delivered $31.78 billion in revenue, up 89% from a year earlier. It easily surpassed the $29.61 billion consensus estimate. AI-optimized servers accounted for $16.4 billion of that number, ahead of the Street's forecast of $16.07 billion. Elsewhere within that segment, storage revenue increased 26% to $4.85 billion, while sales of traditional servers and networking gear were up 122% to $10.53 billion. That last number makes it clear that AI is even benefiting non-AI segments. "We are seeing a growing trend of customers that require meaningful CPU compute capacity to support AI and agentic workflows, and these workloads are creating incremental demand for traditional servers," Clarke told analysts. According to Clarke, Dell now forecasts sales of AI-optimized servers to reach $74 billion in fiscal 2026, which would represent growth of more than 200% compared to the prior year. Just six months earlier, the company had forecast AI server growth of just 13%. Forrester Research analyst Naveeen Chhabra said it's clear that there's no slowing down in the scramble by enterprises to commit more capital to their AI initiatives, even if many are growing concerned about increasing economic uncertainty. "Dell's results suggest that enterprise AI investment is moving beyond experimentation and driving a broader infrastructure modernization cycle," he said. "Organizations are discovering that deploying AI workloads often requires upgrades across networking, storage, security, observability and end-user computing environments too. Dell's other big business segment is the Client Solutions Group, which sells PCs and related accessories. Revenue there rose 20% to $15.03 billion during the quarter, just below the Street's target of $15.08 billion. Clarke told analysts that this was not unexpected, because the company had already warned it was seeing signs of softening in the PC market in the second half of the year, and duly made preparations for this. "We optimized the bits and bytes we have towards the infrastructure business," he said. During the quarter, Dell hosted its annual user conference, Dell Technologies World, where it revealed it has struck key partnerships with Advanced Micro Devices Inc. and Microsoft Corp. It also announced it had won a $9.7 billion contract to provide software to the U.S. military, while the AI-focused cloud infrastructure firm Iren Ltd. struck a deal to buy $1.6 billion worth of Dell's servers and networking equipment. Michael Dell stopped by theCUBE, SiliconANGLE Media's mobile livestreaming studio, where he sat down with hosts John Furrier and Dave Vellante to discuss how the AI factory revolution is moving enterprises from experimentation into full-scale production:

Dell Posts Strong Results and Hikes Its Outlook. The Stock Is Rallying

Get personalized, AI-powered answers built on 27+ years of trusted expertise. Dell Technologies shares are surging after the PC and server maker posted earnings that topped analysts' estimates and hiked its outlook, boosted by booming AI demand. Dell (DELL) shares were up 9% in premarket trading. Dell said after the bell Tuesday it earned an adjusted $7.04 per share in the quarter, more than tripling year-over-year and blowing past the analyst consensus of $4.91 per Visible Alpha. Revenue grew nearly 60% to $46.97 billion, also surpassing expectations for $45.19 billion. The company's third-quarter forecasts of $49 billion in sales and adjusted EPS of $6.50 came in well above analysts' projections. Dell lifted its full-year sales outlook to $192 billion from $167 billion previously, with adjusted EPS seen coming in around $25.50, compared to a prior forecast of $17.90. Dell said it benefited from a growing AI server business that added $60.9 billion in orders in the quarter, lifting Dell's total backlog to $95 billion. Morgan Stanley analysts, lifting their target to $499 from $434, said Dell's results "make clear that companies are significantly investing in AI." Still, the analysts cited some concerns with the sustainability of demand, considering Dell's recent price increases. Citi analysts were more bullish, maintaining a "buy" rating and raising their target to $600 from $515, writing that they expect expanding enterprise AI adoption to help sustain Dell's momentum. Dell shares have more than tripled in value since the start of the year, and were up nearly 240% year-to-date heading into Wednesday's session.

Dell's AI Boom: $95 billion backlog reshapes growth outlook - Dell Stock Surges as AI Backlog Hits Record $95 Billion

Dell's AI Boom: $95 billion backlog reshapes growth outlook 1/10 Dell Stock Surges as AI Backlog Hits Record $95 Billion Dell Technologies shares jumped sharply after the company reported a record AI-server backlog and raised its full-year revenue and earnings outlook. The results highlighted strong demand for AI infrastructure and reinforced Dell's growing role in the data-centre and AI server market. (Sources: Reuters, Yahoo Finance, The Motley Fool) 2/10 AI Backlog Soars to $95 Billion Dell ended the quarter with an AI-optimized server backlog of $95 billion, reflecting a sharp increase in demand. The company also received $60.9 billion in AI-server orders during the quarter, underscoring the scale of investments being made in AI infrastructure. 3/10 AI Server Revenue Doubles Dell generated $16.4 billion in AI-optimized server revenue during the quarter, roughly double the level recorded a year earlier. The rapid increase shows how AI servers have become one of the company's most important growth drivers. 4/10 Revenue Hits Record $47 Billion Dell reported quarterly revenue of $46.97 billion, marking a 58% year-on-year increase and exceeding market expectations. Adjusted earnings came in at $7.04 per share, representing a significant increase from the year-ago period. 5/10 Dell Raises Full-Year Revenue Forecast by $25 Billion Dell sharply raised its full-year revenue forecast to $192 billion, compared with its earlier guidance of $167 billion. The $25 billion increase reflects management's confidence that strong AI infrastructure demand will continue to drive growth. 6/10 EPS Outlook Gets a Major Boost The company also raised its full-year adjusted earnings-per-share forecast to $25.50, from $17.90 previously. The sizeable increase suggests that Dell expects the surge in AI-related sales to translate into stronger profitability as well. 7/10 Traditional Server Business Also Takes Off Growth was not limited to AI-optimized systems. Revenue from traditional servers and networking jumped 122% to $10.5 billion, while storage revenue increased 26% to $4.9 billion, indicating that broader data-centre spending is benefiting multiple parts of Dell's business. 8/10 Why the Results Matter for the AI Trade Dell's latest numbers offer another indication that companies continue to spend heavily on AI infrastructure. The combination of record orders, a $95 billion backlog and higher guidance suggests that demand for servers, networking and data-centre equipment remains strong. 9/10 Dell Emerges as a Key AI Infrastructure Play Dell is increasingly being viewed as an important beneficiary of the AI infrastructure boom. While the company has long been known for PCs and enterprise hardware, its expanding AI-server business is giving investors a new reason to focus on its growth prospects. 10/10 What Investors Should Watch The key question now is how quickly Dell can convert its $95 billion AI backlog into revenue while maintaining margins. Investors will also be watching AI-server demand, data-centre spending, networking and storage growth, and whether Dell can deliver on its significantly higher earnings outlook.

Dell Says the Data Center Is No Longer a Cost Center - Dell Technologies (NYSE:DELL)

For years, companies viewed the data center as a necessary expense -- an asset to maintain, not a business advantage. Dell Technologies Inc. (NYSE:DELL) now says that mindset is changing, arguing that enterprises are increasingly treating their infrastructure as a value creator as AI adoption accelerates. That shift, more than any single product launch, could explain why the company remains confident that demand for AI infrastructure has staying power. Dell's Data Center Shift The idea surfaced during Dell's second-quarter earnings call when an analyst asked whether the company's strong server growth reflected genuine demand or merely pricing and customer pre-buys. Rather than pointing to a temporary spike, management described a structural change in how enterprises are investing in their data centers. "We're seeing signs where the data center is turning from this cost center approach to a value creator," Chief Financial Officer David Kennedy said. "The ecosystem and the enterprise customers that we're seeing are starting to embrace that." Chief Operating Officer Jeff Clarke pointed to an ongoing modernization cycle that extends well beyond AI servers. Enterprises are replacing aging infrastructure with systems that deliver more computing power, memory and storage while consuming less space and energy. "There's a modernization in the data center," Clarke said. "That modernization continues to drive consolidation... driving demand for new servers that have more cores, new servers that have more DRAM, and new servers that have more storage." Tech QUICK SPARK: This Startup Got AMD Chips to 80% of Nvidia's Speed at Half the Cost. Wafer raised $40 million to optimize AI inference on non-Nvidia chips, challenging one of Nvidia's biggest advantages: its software ecosystem. 1 min read Read this article Why Dell Sees Durable Demand Dell's argument is that AI isn't replacing traditional enterprise infrastructure spending -- it's amplifying it. According to Clarke, the company still has approximately 1.2 million servers in its installed base that are at least two generations old and need to be upgraded. At the same time, new security requirements, including post-quantum cryptography, are forcing customers to modernize systems that were already nearing the end of their useful lives. "Increasingly we're seeing enterprises drive AI workloads, specifically agentic workloads," Clarke said, adding that AI demand is complementing, rather than displacing, the broader refresh cycle. That narrative also helps explain why Dell's traditional server business outpaced AI compute during the quarter. Management attributed the strength to enterprise customers upgrading core infrastructure while preparing for more AI-intensive workloads. What It Means for Investors Dell's most important message this quarter wasn't simply that AI demand remains strong -- it was that enterprise infrastructure spending may be undergoing a broader transformation. By arguing that data centers are becoming strategic assets rather than operating expenses, management is making the case that the current investment cycle extends beyond GPU deployments and into a multiyear modernization wave. For investors, the next question isn't whether AI demand remains healthy. It's whether enterprises continue treating infrastructure as a source of competitive advantage rather than just another IT budget line. If Dell is right, that would support a longer runway not only for its AI servers, but also for its traditional server, storage and networking businesses. Tech Dell's CEO Says AI Boom Means Nonstop Scrambling for Parts Dell posted a blowout quarter fueled by AI demand, and CEO Jeff Clarke said that involves a nonstop hunt for parts. 3 min read Read this article Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Dell AI Server Momentum Accelerates With Record $60.9B In Q2 AI Orders; Backlog Hits $95B

'Our AI server momentum continues to accelerate,' says Dell Chief Operating Officer Jeff Clarke. 'We booked $60.9 billion in AI orders this quarter, the most in our history.' Dell Technologies Tuesday took its AI market momentum to new heights, reporting a record $60.9 billion in AI orders in its second fiscal quarter ended July 31 along with a record AI backlog of $95 billion. "Our AI server momentum continues to accelerate," said Dell Chief Operating Officer Jeff Clarke in a conference call with analysts after the company reported record AI-optimized server sales of $16.4 billion, up 100 percent from $8.2 billion in the year-ago quarter. "We booked $60.9 billion in AI orders this quarter, the most in our history." Clarke said Dell's AI sales pipeline "continued to grow sequentially and remains multiples" of the $95 billion backlog even after booking $131.7 billion into orders over the last 12 months. "With accelerating demand and a growing pipeline of differentiated capabilities we are well positioned to capture the opportunity ahead," said Clarke. Dell raised its AI-optimized server revenue guidance for the fiscal year to $74 billion, up from $60 billion. What's more, with AI momentum accelerating and what it called the "opportunity expanding" across the Dell portfolio, the company raised its full year fiscal 2027 revenue guidance by $25 billion to $192 billion, up nearly 70 percent year over year. Finally, Dell raised its non-GAAP 2027 fiscal year earnings per share to $25, up from $17.90. Dell shares were up $29.20 or 7 percent in after-hours trading to $453.99. Overall, Dell reported second-quarter sales and earnings above expectations with record revenue of $47 billion, up 58 percent from $29.77 billion year over year. The Zacks consensus estimate was $45.34 billion. Dell reported non-GAAP diluted earnings per share of $7.04, up 203 percent from $2.32 in the year-ago quarter and well above the Zacks consensus estimate of $4.95 per share. AI demand is "broadening across neoclouds, sovereign and enterprise customers" with Dell's AI customer count now surpassing 6,500, said Clarke. "The scale and complexity of these deployments reinforce why customers choose us," he said. Clarke said the AI market "complexity" plays to Dell's "strength" with the company's "engineering capabilities, broad portfolio, global supply chain and ability to deploy and support infrastructure at scale globally" as critical differentiators versus competitors. That is enabling customers to move from AI design to production "more quickly," he said. C.R. Howdyshell, CEO of Independence, Ohio-based Dell Titanium partner Advizex, a Myriad360 company, said the record performance bodes well for Dell's future and the partners that are teaming with the AI infrastructure powerhouse. "Our AI sales pipeline with Dell continues to grow," he said. "We are seeing significantly more adoption in the enterprise segment with a high level of interest across all industries. We're very optimistic and excited about Dell's channel commitment." Howdyshell credited Dell Senior Vice President North America Channel Sales Gregg Ambulos for leading the AI partner momentum charge. "Gregg's done a great job working with the highest-level partners to capture the AI opportunity," he said. "We're working closely with Gregg and his team to scale our AI business." Clarke said Dell is also seeing record revenue growth in its traditional server and networking business with revenue of $10.5 billion, up 122 percent from $4.73 billion in the year-ago quarter. A growing number of enterprise customers are adding CPU capacity to support AI and agentic workloads, said Clarke. "These workloads are creating incremental demand for traditional servers," he said. Clarke said over the last two quarters Dell has gained more than 10 points of traditional server share. "We expect to gain share again this quarter," he said. In the past two quarters, Dell has generated almost as much revenue from traditional servers and networking in any prior full year in Dell's history, said Clarke. "With the majority of our installed base still on (Dell) 14th generation (compared with the current 17G Dell server) or older servers we see a significant and durable refresh opportunity ahead," said Clarke. "The strength and depth of demand and the volume of our continued share gains demonstrate the competitiveness of our portfolio and the consistency of our execution." Dell also posted record quarterly storage sales of $4.9 billion, up 26 percent from $3.85 billion in the year-ago quarter with strong growth in Dell's own storage intellectual property offerings including PowerStore, PowerProtect and Dell PowerFlex software-defined storage. "We are beginning to see incremental demand from AI workloads, which require customers prepare, manage and move increasingly large volumes of data," said Clarke. In its Client Solutions Group (CSG) device business, Dell sales were up 20 percent year over year to $15 billion compared with $12.5 billion in the year-ago quarter. Commercial sales were up 22 percent to $13.19 billion compared with $10.7 billion in the year ago quarter. "CSG revenue is growing at the fastest rate in five years," he said. Clarke said overall demand for Dell solutions is "exceeding available supply" with customers entering a new era of infrastructure modernization. "Customers are modernizing their data centers for both AI and non-AI workloads and the benefits are meaningful. AI is an important catalyst but the opportunity extends well beyond AI optimized infrastructure." Clarke said customers no longer see IT environments as "cost centers but as value drivers that enable growth, productivity and competitive advantage." In fact, Clarke said customers are "expanding and reallocating budgets" to support continued IT investments. "This is creating opportunities across our portfolio from infrastructure to client devices," he said. "Our world-class supply chain and ability to serve customers across their IT environments are helping us meet more of their needs and gain share."

Dell shares jump 11% after strong AI server demand boosts annual forecast

On Wednesday, Dell Technologies experienced a notable surge in its shares, fueled by booming demand for AI servers. Companies such as Dell and Super Micro are capitalizing on this trend, with Dell reporting an extraordinary 58% increase in second-quarter revenue, reaching an impressive $47 billion. Additionally, the firm has significantly upgraded its revenue and profit projections, mirroring the surge in investments for AI applications in data centers. Dell Technologies' shares climbed nearly 11% on Wednesday, as strong demand for its AI-optimized servers powered an increase in its annual revenue and profit forecasts. AI infrastructure companies have benefited from rising demand as tech firms and hyperscalers ramp up investments in data ⁠centers to ⁠support large language models and other AI applications. Peer Super Micro Computer had also reported upbeat results last month. US MarketsPowered By As on 02 Sep 2026, 08:07 PM IST S&P 500 Top Gainers Steel Dynamics245.86(5.03%) Charter Communications153.36(4.90%) Best Buy Co86.30(4.44%) Nucor263.00(4.40%) Gainers" S&P 500 Top Losers Coterra Energy32.56(-8.62%) PG&E12.87(-8.50%) Palo Alto Networks335.13(-7.44%) Edison Intl54.57(-7.19%) Losers" "The AI momentum spoke for itself," said analysts at J.P. Morgan, noting Dell's record $60 billion of orders and $95 billion backlog in the quarter. Dell's 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. "Storage strength is really playing a role ⁠and it seems sustainable as AI is driving fundamental growth in Dell's most profitable business," said analysts at Melius Research. The brokerage raised its price target on the stock to $735, the highest among the analysts tracked by LSEG. Dell raised its annual revenue forecast to $192 billion from $167 billion, and adjusted earnings per share target to $25.50 from $17.90 earlier. Its second-quarter revenue jumped 58% to a record $47 billion, surpassing Wall Street estimates of $44.92 billion. Shares of other AI server makers, including Super Micro and Hewlett ⁠Packard Enterprise, were up 2.2% and 1.4%, respectively, following Dell's results. Dell is set to add about $23.26 billion in market value at the current share price of $461, if gains hold. Its shares were trading at 18.12 times expected earnings over the next 12 months, according to LSEG data. That compares with 12.56 and 8.06 for HPE and Super Micro, respectively.

Dell Bets on a $1 Trillion AI Boom as AI Agents Set to Reshape Data Centers: COO Jeff Clarke Says 'Scale

Dell Technologies, Inc. (NYSE:DELL) sees a more than $1 trillion opportunity in AI infrastructure through 2030, as surging inference demand and the rise of enterprise AI agents are expected to reshape data centers. Dell's AI Infrastructure Opportunity The company's bullish outlook came during its fiscal 2027 second-quarter earnings call, where Chief Operating Officer Jeff Clarke pointed to the rapid expansion of AI workloads and Dell's growing order pipeline. Dell booked a record $60.9 billion in AI orders during the quarter and ended the period with a $95 billion AI backlog. Over the past four quarters, the company booked $131.7 billion in orders, while its five-quarter pipeline continued to grow sequentially. Clarke said the opportunity extends well beyond training AI models. "Agentic demand is reshaping the data center and the underlying infrastructure," Clarke said, adding that inference-driven token demand could grow 87 times to 3,600 quadrillion tokens by 2030. Trading Ideas Dell Stock Gains as Super Micro, Lenovo Beat Expectations Dell Technologies is rising Thursday to a new all-time high as server strength lifts the stock after upbeat Super Micro and Lenovo results. 3 min read Read this article AI Could Drive 75% of Data Center Demand Dell expects training demand to increase fivefold to 850 zettaflops by 2030, while enterprise agentic AI could become the largest workload by 2028. Trending More broadly, Clarke said Dell expects AI to account for 75% of all data center demand by 2030, requiring an additional 200 gigawatts of power. Dell believes roughly half of that incremental data-center power demand will come from neocloud providers, sovereign customers and enterprises -- markets where it already has a significant presence. "If you look at that math, we think the opportunity in front of us is more than a trillion dollars over that timeframe," Clarke said. He added that Dell's engineering expertise, global deployment capabilities and customer support give it an advantage as AI infrastructure becomes increasingly complex. "We believe we're well-positioned," Clarke said, adding, "We believe that our model is differentiated, that our engineering is differentiating ourselves with every customer that we interact with." "The scale of our deployment capabilities is unmatched globally," he said. Dell Earnings Crush Estimates, Revenue Surges Dell Technologies posted adjusted diluted EPS of $7.04, comfortably topping Wall Street's $4.91 estimate by about 43%. Revenue reached $46.97 billion, exceeding the $44.95 billion consensus forecast and jumping from $29.78 billion a year earlier. Looking ahead, Dell expects third-quarter adjusted EPS of $6.50, well above analysts' $4.49 estimate, while revenue is projected at $49 billion, compared with the $41.43 billion consensus. Price Action: Dell shares closed at $425.00 on Tuesday, down 6.98%, but surged 8.01% to $459.03 in after-hours trading, according to Benzinga Pro. According to Benzinga Edge Stock Rankings, Dell ranks in the 99th percentile for Momentum, with its stock showing positive trends across short-, medium- and long-term time frames. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Movers Michael Dell Fifth Richest in World as Dell Stock Climbs to New Highs: Gain of $106 Billion in 2026 Trails Only Musk Michael Dell is one of the richest people in the world and keeps getting richer as Dell stock gains more and more in 2026. 2 min read Read this article Photo courtesy: Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Dell again lifts annual forecasts as AI demand powers record results

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. 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.

Dell Q2 Preview: Stock Got Trump Boost, Is AI Lift Next? - Dell Technologies (NYSE:DELL)

Dell Q2 Preview: Record Revenue, Strong AI Backlog Could Overshadow President Trump's Boost for Stock Dell Technologies (NYSE:DELL) is one of the best-performing stocks in 2026. The stock could go even higher depending on second-quarter financial results, which are coming Tuesday after market close. Here are the earnings estimates, analyst ratings and key items to watch. * Dell Technologies stock is building positive momentum. Why is DELL stock trading higher? Dell Q2 Earnings Estimates Analysts expect Dell to report second-quarter revenue of $44.95 billion, up from $29.78 billion in last year's second quarter, according to data from Benzinga Pro. The company has beaten analyst estimates for revenue in two straight quarters and in seven of the past 10 quarters overall. Estimates for $44.95 billion would see Dell beat its quarterly record of $43.84 billion set in the first quarter. Analysts expect Dell to report second-quarter earnings per share of $4.91, up from $2.32 in last year's second quarter. The company has beaten analyst estimates for earnings per share in four straight quarters and in nine of the past 10 quarters overall. Tech Earnings Volatility Watch: Broadcom Sets the AI Week, But the Biggest Implied Mover Is a Whiskey Maker Broadcom, Dell and Snowflake headline a huge tech week, but the biggest implied earnings moves belong to MongoDB, Brown-Forman and eight other names. 4 min read Read this article Dell Analyst Ratings and Price Targets Here are some of the most recent analyst ratings on Dell stock and their price targets. * BofA Securities: Maintained Buy rating, raised price target from $500 to $505 * UBS: Maintained Neutral rating, raised price target from $440 to $455 * Morgan Stanley: Maintained Equal-Weight rating, raised price target from $430 to $434 * Evercore ISI: Maintained Outperform rating, raised price target from $500 to $550 * Wells Fargo: Maintained Overweight rating, raised price target from $505 to $545 Key Items to Watch Dell comes into the earnings report as one of the top-gaining stocks in the S&P 500 with shares up 264% year-to-date. Despite the strong gain, shares are down around 9% from their all-time highs, providing some upside to get to new highs. The stock is also one of the most talked-about technology names thanks to several shout-outs from President Donald Trump earlier this year, shout-outs that preceded government contracts and the stock's significant rise. It's not just the president helping Dell. The company reported record first-quarter revenue of $43.84 billion, which was up 88% year-over-year. Dell saw its Traditional Servers and Networking segment revenue up 92% year-over-year and AI-Optimized Servers revenue up 757% year-over-year. In the first quarter, the company booked $24.4 billion in AI orders, which led to raising AI server expectations for the full year. Analysts and investors will be looking at these key figures of how much AI server revenue was recognized in the second quarter, how many bookings there were and whether the segment is being raised again. While the company raised its AI expectations, Dell also raised full-year revenue and earnings per share estimates. Given the high expectations for the quarter, Dell may need another beat and raise quarter to keep the shares trading this much higher on the year. Recent earnings reports from large-cap technology names and those associated with the AI sector have been strong, putting a big spotlight on Dell and the others who are yet to report. With high expectations comes the potential for shares getting hit hard on a miss or failure to raise estimates. Likewise, a strong beat and raise could see shares test all-time highs again. Dell Stock Price Action Dell stock is up 1.48% to $462.09 on Monday versus a 52-week trading range of $110.22 to $514. Dell stock is up 263.9% year-to-date in 2026. Tech AI Bubble Could Be Ready to Pop and Jim Cramer May Be the Warning Sign Former hedge fund manager thinks the AI bubble could be close to popping and Jim Cramer could be one of the reasons why. 3 min read Read this article Photo Courtesy: Gabriel Pahontu on Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Dell's AI Flywheel is Taking Shape: From AI PCs to Data-Center Infrastructure

Dell reported record second-quarter fiscal 2027 revenue of USD 47.0 billion, up 58% year over year. Diluted earnings per share reached USD 6.34, up 273%, while non-GAAP diluted earnings per share reached USD 7.04, up 203%. Cash flow from operations stood at USD 2.2 billion. The numbers show strong sales and a sharp rise in profit. The clearest sign of Dell's AI strength sits inside its Infrastructure Solutions Group. AI-optimized server revenue reached USD 16.4 billion, up 100% from a year earlier. Dell also booked a record USD 60.9 billion in AI orders during the quarter and ended the period with a record USD 95 billion AI server backlog. That backlog gives a large pool of future revenue. The company also said its AI customer base rose from 5,000 to 6,500 in one quarter. Dell has now shipped rack systems based on the NVIDIA Vera Rubin platform, while demand has spread across neocloud firms, sovereign AI projects and enterprise customers. Dell has raised its full fiscal 2027 revenue target from USD 60 billion to USD 74 billion. The new figure represents a 200% year-over-year increase, or three times the prior-year level. That sharp upgrade gives the AI server unit a central role in Dell's financial outlook. The wider infrastructure business also adds weight to the story. Infrastructure Solutions Group revenue reached USD 31.8 billion, up 89%, while operating income reached USD 4.8 billion, up 225%. Traditional servers and networking generated revenue of USD 10.5 billion, up 122%. This matters as AI workloads also require strong central processing unit capacity, network links and data systems.

Truist raises Dell stock price target to $505 on AI server backlog By Investing.com

Investing.com - Truist Securities raised its price target on Dell Technologies stock (NYSE:DELL) to $505 from $360 on Tuesday while maintaining a Hold rating. The firm cited accelerating AI orders that have driven Dell's AI server backlog to a record $95 billion, providing visibility into fiscal year 2028. AI and infrastructure investment is driving accelerating growth in traditional servers and storage products. Truist noted that demand is broad across neoclouds, model builders, enterprises and sovereign customers. Dell's supply chain capabilities and efficiency are driving outsized flow-through to earnings per share. The firm raised its estimates following Dell's quarterly beat and raised guidance. The company is pointing to more durable tailwinds from AI-related demand.Dell's stock currently trades at $445.51 with a market cap of $282 billion, though shares fell 8.4% over the past week. The company has delivered a remarkable 256% return over the past year and 241% year-to-date. According to InvestingPro analysis, 6 analysts have revised their earnings upwards for the upcoming period, supporting the bullish outlook. The stock trades at a PEG ratio of 0.34, suggesting attractive valuation relative to its growth prospects. However, InvestingPro Fair Value analysis indicates the stock may be overvalued at current levels. The new price target reflects higher estimates and a roll-forward to calendar year-end 2027. Truist said a lack of material upside to the new target keeps its Hold rating in place. In other recent news, Dell Technologies has seen several updates from analysts reflecting its current performance and future prospects. Dell's fiscal second-quarter results have been notable, with a significant boost in its infrastructure solutions group revenue, which grew by 89%. The company has also raised its fiscal 2027 guidance by $25 billion, indicating a projected 70% year-over-year growth. JPMorgan has increased its price target for Dell to $635, emphasizing the company's continued momentum in artificial intelligence and IT infrastructure refreshes. Similarly, Bernstein has set a new price target of $650, highlighting Dell's storage revenue growth of 26% and its all-time high profitability. TD Cowen adjusted its price target to $500, focusing on the rising demand for AI servers, expected to reach $74 billion by fiscal year 2027. Morgan Stanley also raised its price target to $499, noting investments in AI infrastructure across various platforms. Meanwhile, KeyBanc has reiterated a Sector Weight rating, acknowledging strong quarterly results but expressing caution regarding further upside potential. These developments reflect the broad interest and varied perspectives from analysts on Dell's strategic positioning and growth trajectory. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

KeyBanc reiterates Dell stock Sector Weight on AI growth questions By Investing.com

Investing.com - KeyBanc reiterated a Sector Weight rating on Dell Technologies Inc. (NYSE:DELL), citing strong quarterly results but questioning further upside potential. The firm noted Dell's second-quarter fiscal results were strong, with infrastructure solutions group revenue growing 89% and the company raising its fiscal 2027 guidance by $25 billion to reflect 70% year-over-year growth. The strong performance has contributed to a 256% return over the past year, though the stock has declined 8.4% in the past week. According to InvestingPro data, 6 analysts have revised their earnings upwards for the upcoming period, one of 15+ ProTips available to subscribers. KeyBanc analyst Brandon Nispel said the 4% revenue beat was smaller compared to the previous quarter and consensus estimates had already embedded a beat into expectations. The firm noted Dell's non-AI business is driving profitability and raised questions about how long enterprises can maintain current spending levels. KeyBanc maintained its Sector Weight rating on the stock. Despite the company's attractive PEG ratio of 0.34, InvestingPro analysis suggests Dell is currently overvalued relative to its Fair Value. Investors can access detailed valuation analysis in Dell's comprehensive Pro Research Report, available for this and 1,400+ other US stocks. In other recent news, Dell Technologies Inc. has seen a series of positive analyst updates following its second-quarter results and future guidance. Bernstein raised its price target for Dell to $650, emphasizing strong storage revenue growth and high profitability. Melius also increased its target to $735, highlighting Dell's impressive gross margin performance, which exceeded estimates by 390 basis points. Piper Sandler lifted its target to $558, noting the company's solid quarterly results and guidance that surpassed expectations due to IT budget reallocations. Raymond James set a new target of $617, driven by a significant 100% year-over-year increase in AI sales and an improved fiscal 2027 outlook. Morgan Stanley raised its target to $499, citing a surge in investments in AI infrastructure. These developments reflect Dell's strategic positioning in the tech market, particularly in AI and storage solutions. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Dell cheered for results that far exceeded expectations

Record numbers, boosted by AI-optimized servers... In its second fiscal quarter (ended in late July), the IT hardware maker saw its adjusted (non-GAAP) EPS triple year over year to $7.04, easily beating the $4.92 average estimate from analysts. Revenue rose by about 58% to a record $46.97bn, versus the $44.92bn the market was expecting, thanks in particular to an 89% jump in its Infrastructure Solutions Group division to $31.78bn, including $16.40bn (+100%) from AI-optimized servers. 'In our AI server business, we also posted record orders of $60.9bn and ended the quarter with a record backlog of $95bn,' notes Jeff Clarke, Dell's vice chairman and chief operating officer. 'We are also seeing broader revenue growth, with year-over-year increases of 122% in traditional servers and networking, 26% in storage and 20% in our client solutions,' the executive adds. ...enabling an increase in annual targets 'With AI momentum accelerating and our opportunities expanding across the portfolio, we are raising our revenue outlook for the full current fiscal year,' CFO David Kennedy says. Dell now expects adjusted EPS up 148% to $25.50 (versus $17.90 previously), and revenue up 69% to $192bn (versus $167bn previously), including AI-optimized server revenue tripling to $74bn (versus $60bn previously). By comparison, analysts were, on average, looking for adjusted EPS of just $18.92 and revenue of $172.67bn for the full year. Likewise, for the third quarter, Dell is targeting EPS of $6.50 and revenue of $49bn, well above consensus of $4.49 and $41.42bn. BofA and UBS raise their price targets The release draws a positive response from Bank of America, which reiterates its 'buy' rating on the stock, with a price target raised from $505 to $600, a level representing about 20 times the $30.41 in EPS it expects for calendar year 2027. 'We view Dell as a beneficiary of the adoption of agentic AI,' the U.S. firm says, adding that it 'is raising its estimates across all revenue categories in 2027 as well as its margin forecasts, supporting strong operating profit growth'. While UBS also lifts its price target, from $455 to $500, the firm maintains a 'neutral' rating on Dell, 'given limited visibility into the durability of growth for fiscal 2028, after the exceptional performance in fiscal 2027'. 'While Dell trades at an attractive multiple of about 14 times our 2028 EPS estimate of $32.79, comparable AI-exposed companies have also seen their valuation multiples compress,' the Swiss bank adds.

Dell stock rallies 10% as soaring AI server demand prompts guidance raise By Investing.com

Investing.com -- Dell Technologies on Tuesday blew past quarterly profit expectations and comfortably beat revenue forecasts, helped by soaring demand for its artificial intelligence servers. It also bumped up its full-year top- and bottom-line guidance. Shares of the company advanced more than 10% in early trading Wednesday by 09:31 ET (13:31 GMT). Dell has been one of the biggest winners of the artificial intelligence boom that began in late 2022. The company has partnered with chipmakers like Nvidia to become one of the biggest manufacturers of powerful rack-scale servers and infrastructure capable of powering AI workloads. It has booked tens of billions in AI server orders and built up a massive backlog. Jeff Clarke, DELL's chief operating officer, said the AI server business booked an all-time high $60.9 billion in orders, brought in $16.4 billion in revenue, and exited the quarter with a record $95 billion backlog. Revenue from Dell's Infrastructure Solutions Group (ISG) segment, which houses the AI server business, has now become roughly double of revenue from Dell's legacy hardware division, or the Client Solutions Group (CSG), covering its personal computers, laptops, tablets, and other such products. ISG revenue in the quarter surged 89% Y/Y to $31.78 billion, while CSG revenue climbed 20% to $15.03 billion. The Round Rock, Texas-based company earned $7.04 per share on an adjusted basis on revenue of $46.97 billion for its fiscal Q2 2027. Analysts had expected adjusted profit of $4.87 per share on revenue of $44.84 billion. Looking at guidance, Dell sees fiscal Q3 2027 adjusted earnings per share of $6.50 on revenue of $49 billion, versus an anticipated $41.91 billion. For the full fiscal year 2027, the firm sees adjusted earnings per share of $25.50 on revenue of $192 billion, versus a prior outlook of $17.90 per share on revenue of $167 billion. The top-line consensus estimate was $173.8 billion. Raymond James analyst Simon Leopold reiterated the Outperform rating on Dell after the report and raised the price target to $617 from $500, highlighting "a solid F2Q27 beat and a significantly higher F3Q27 and FY27 outlook." "Although pricing and pull-forward orders are likely factors to some degree, the revised outlook implies AI is pulling through demand across traditional compute and storage, and the margin expansion this quarter also demonstrates Dell's ability to execute despite continued supply constraints," he wrote. Vahid Karaahmetovic contributed to this report.

Morgan Stanley raises Dell stock price target on AI infrastructure demand By Investing.com

Investing.com - Morgan Stanley raised its price target on Dell Technologies stock (NYSE:DELL) to $499 from $434 while maintaining an Equalweight rating. The stock currently trades at $425, down 8.4% over the past week, though it has surged 241% year-to-date with a market capitalization of $274.6 billion. Analyst Erik Woodring cited Dell's results as evidence that companies are significantly investing in artificial intelligence across cloud, hybrid and on-premises infrastructure. The analyst noted that blowout quarters should persist as long as supply remains short and execution stays strong. Morgan Stanley questioned the durability of Dell's Infrastructure Solutions Group pricing and margin capture. The firm's Equalweight rating reflects concerns about valuation despite the company's strong performance in AI infrastructure. According to InvestingPro analysis, Dell appears overvalued at current levels, though the company trades at a PEG ratio of just 0.34, suggesting attractive value relative to its growth trajectory. InvestingPro offers 13 additional exclusive tips and comprehensive Pro Research Reports for Dell and 1,400+ other US stocks. In other recent news, Dell Technologies reported robust financial performance for the July quarter, with revenue reaching $47 billion and earnings per share (EPS) of $7.04. These figures surpassed consensus estimates of $44.8 billion in revenue and $4.90 in EPS. Looking ahead, Dell has guided October quarter revenue to $49 billion and EPS of $6.50, exceeding expectations of $41.9 billion and $4.56, respectively. The company's strong performance has been attributed to significant growth in AI server sales, which increased by 100% year-over-year, and a 58% overall revenue growth. In response to these results, several analysts have raised their price targets for Dell. Piper Sandler increased its target to $558, citing strong AI demand. Melius highlighted Dell's margin strength, raising its target to $735. Raymond James and Mizuho also raised their targets to $617 and $600, respectively, while Evercore ISI set its target at $575, all pointing to Dell's impressive AI-driven growth. These analysts maintain positive ratings on Dell, reflecting confidence in its continued performance. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Piper Sandler raises Dell stock price target on AI demand strength By Investing.com

Investing.com - Piper Sandler raised its price target on Dell Technologies Inc. (NYSE:DELL) to $558 from $497 on Wednesday while maintaining an Overweight rating. The stock currently trades at $425 with a market cap of $274.61 billion, though shares have declined 8.4% over the past week despite a remarkable 241% year-to-date gain. According to InvestingPro analysis, Dell appears overvalued at current levels relative to its Fair Value estimate. The firm noted that Dell reported solid second-quarter results and provided guidance that exceeded expectations as customers reallocate budgets to IT and modernize for workloads. Demand continues to outstrip supply, according to the analyst. The company's on-premise and edge solutions offer attractive tokenomics and give better control to enterprises for inferencing. Management did not directly address volume versus pricing gains, with commentary suggesting gains are predominantly pricing pass-through but that units will have to come at some point. Dell guided to approximately $192 billion, an increase of roughly $25 billion, with the raise mostly attributed to AI servers adding $14 billion and traditional servers adding $10 billion. Datacenter modernization, including new security requirements, is driving the growth. The AI build-out, full stack offering, and value deployment expertise are driving share gains and opportunity, Piper Sandler said. InvestingPro data reveals Dell is trading at a low P/E ratio relative to near-term earnings growth, with a PEG ratio of just 0.34. For deeper insights, investors can access Dell's comprehensive Pro Research Report, one of 1,400+ available reports that transform complex data into actionable intelligence. In other recent news, Dell Technologies reported impressive financial results for the July quarter, with revenue reaching $47 billion and earnings per share (EPS) at $7.04. These figures exceeded consensus estimates of $44.8 billion in revenue and $4.90 EPS. The company has also projected October quarter revenue of $49 billion and EPS of $6.50, surpassing market expectations of $41.9 billion in revenue and $4.56 EPS. Several analyst firms have responded positively to these developments, with Melius raising its price target for Dell to $735, citing strong gross margin performance. Raymond James increased its target to $617, highlighting a 100% year-over-year increase in AI sales. Mizuho and BofA Securities both raised their targets to $600, pointing to significant growth in AI server demand and component constraints that are bolstering pricing power. Evercore ISI also raised its target to $575, noting substantial growth across various segments, including traditional servers, AI servers, storage, and client solutions. These updates reflect a robust financial outlook for Dell, driven by strong demand across its product lines. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Mizuho raises Dell stock price target to $600 on AI server growth By Investing.com

Investing.com - Mizuho raised its price target on Dell Technologies Inc. (NYSE:DELL) to $600 from $500 while maintaining an Outperform rating. Dell reported July quarter revenue of $47 billion and earnings per share of $7.04, above consensus estimates of $44.8 billion and $4.90. The results reflect a revenue growth rate of 38.57% over the last twelve months, pushing the company's market capitalization to $274.61 billion. The company guided October quarter revenue to $49 billion and EPS of $6.50, compared with consensus of $41.9 billion and $4.56. The company raised its fiscal 2027 revenue guidance to $192 billion from a prior $167 billion and above consensus of $174 billion. Dell guided AI server revenue to approximately $74 billion, up from a prior $60 billion, and said conventional server revenue is expected to rise roughly 100% year-over-year with Agentic AI. Dell faces fiscal 2027 supply constraints led by DRAM, NAND and CPU, with demand outpacing supply. Mizuho estimates Dell's AI pipeline at approximately $200 billion, up from a prior $115 billion, with the customer base expanding across neocloud, enterprise and sovereign segments. Despite the strong momentum, InvestingPro analysis suggests the stock is currently overvalued relative to its Fair Value, placing it among the most overvalued stocks in the market. For deeper insights, investors can access Dell's comprehensive Pro Research Report, one of 1,400+ available for US equities. The firm said Dell's commercial solutions group is gaining share as commercial customers refresh a large installed base. Mizuho cited strong tailwinds from Agentic AI and AI server with high margin storage attach. In other recent news, Dell Technologies reported robust fiscal second-quarter results, significantly surpassing Wall Street expectations. The company achieved revenue of $47.0 billion and adjusted earnings per share of $7.04, compared to analyst projections of $44.84 billion in revenue and $4.87 earnings per share. This performance marked a 58% year-over-year revenue increase, fueled by substantial growth in AI servers, traditional server and networking, storage, and client solutions. Following these results, Evercore ISI raised its price target for Dell to $575, maintaining an Outperform rating, while BofA Securities increased its target to $600, keeping a Buy rating. BofA highlighted that demand is outpacing supply by approximately 30% in fiscal 2027, with potential for an even larger gap in fiscal 2028, driven by component constraints and customer data center readiness. Dell's strong earnings and revenue growth reflect booming demand for AI servers, enhanced storage sales, and effective operating leverage. These developments underscore the company's position in a solid pricing environment amid ongoing supply challenges. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Why is Dell Technologies stock surging today? By Investing.com

Investing.com -- Dell Technologies stock surged 9.4% in pre-open trading after the company posted fiscal second-quarter FY2027 results that dramatically exceeded analyst forecasts across every major financial metric. Shares moved sharply higher in extended trading after the computer maker reported results and a forecast that easily cleared Wall Street expectations, with adjusted earnings per share of $7.04 versus the $4.92 consensus and revenue of $46.97 billion against the $44.92 billion estimate. Net income reached $4.13 billion, or $6.34 per share, up from $1.16 billion, or $1.70 per share, in the same quarter a year ago. The standout detail within the report was the explosive growth in Dell's AI infrastructure business. The Infrastructure Solutions Group posted record revenue of $31.8 billion, up 89% year-over-year, with AI-optimized server revenue doubling to $16.4 billion. Dell also raised its fiscal 2027 AI-optimized server revenue forecast to $74 billion, up from prior expectations of $60 billion, and lifted its full-year revenue outlook by $25 billion to $192 billion while guiding adjusted EPS to $25.50 -- the second guidance increase of the year. For the fiscal third quarter, Dell guided for $6.50 in adjusted EPS on $49.0 billion in revenue, well above analyst expectations of $4.49 per share and $41.42 billion in revenue. On the analyst front, Deutsche Bank initiated coverage of Dell Technologies with a Hold rating, while Bank of America had raised its price target to $505 ahead of the print. The broader market provided little assistance to Dell's pre-market rally. The S&P 500 was essentially flat at -0.03%, the Dow was marginally positive at +0.05%, and the Nasdaq was slightly lower at -0.24%, underscoring that Dell's move was entirely company-driven. The stock had actually been trading below its key moving averages on Tuesday as investors repositioned ahead of the quarterly results, due after the market close. The prior session was also weighed down by geopolitical concerns, creating a low base from which the earnings surprise could launch. The combination of a historic earnings beat, a record AI server backlog of $95 billion, and a $25 billion upward revision to full-year revenue guidance created a powerful convergence of catalysts. Dell's adjusted EPS of $7.04 blew past the consensus estimate of $4.91 by more than 43%, a margin of outperformance that left little room for skepticism and triggered broad buying pressure in pre-market trading, pushing shares toward $464.90 -- well within striking distance of the stock's 52-week high of $514. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Dell Q2 FY27 slides: AI server backlog hits $95B, revenue up 58% By Investing.com

Dell Technologies (NYSE:DELL) presented its fiscal second quarter 2027 results on September 1, 2026, showcasing what management described as "compounding benefits" from its execution, competitive advantages, and broad portfolio. The company delivered record revenue of $47.0 billion, up 58% year-over-year, and record non-GAAP diluted earnings per share of $7.04, up 203% from the prior year. The results significantly exceeded Wall Street expectations, with adjusted EPS coming in $2.17 above the $4.87 forecast and revenue beating estimates by $2.16 billion. Following the announcement, shares rebounded 6.21% in after-hours trading to $451.40 after closing the regular session down 6.8% at $425. The presentation highlighted unprecedented demand for AI infrastructure, with the company booking $60.9 billion in AI server orders during the quarter and exiting with a record backlog of $95.0 billion. Over the past year, Dell has accumulated $131.7 billion in total AI server orders. Quarterly Performance Highlights As shown in the following detailed breakdown of Q2 FY27 financial highlights, Dell's performance reflected strength across all major business segments. The Infrastructure Solutions Group (ISG) delivered revenue of $31.8 billion, up 89% year-over-year, marking the tenth consecutive quarter of double-digit or better growth. Within ISG, AI-Optimized Servers generated $16.4 billion in revenue, growing 100% year-over-year, while Traditional Servers & Networking revenue surged 122% to $10.5 billion. Storage revenue increased 26% to $4.9 billion. The Client Solutions Group (CSG) posted revenue of $15.0 billion, up 20% year-over-year, with Commercial revenue growing 22% to $13.2 billion -- the strongest Commercial growth in over four years and the eighth consecutive quarter of revenue growth. Consumer revenue rose 7% to $1.8 billion, marking the fourth consecutive quarter of demand growth. Operating income reached $5.9 billion on a non-GAAP basis, up 160% year-over-year and growing faster than revenue. The company's non-GAAP operating margin expanded to 12.6% of revenue, reflecting significant operational leverage as operating expenses increased only 22% while revenue jumped 58%. AI Infrastructure Momentum The following chart illustrates Dell's expanding AI server business, showing the trajectory from orders to revenue to backlog. Dell's AI infrastructure business demonstrated explosive growth, with quarterly orders of $60.9 billion representing a substantial acceleration from prior periods. The company's backlog exiting Q2 reached $95.0 billion, while management noted that the opportunity pipeline is now "multiples of backlog." The customer base for AI-optimized servers expanded to over 6,500 customers spanning Neocloud, Sovereign, and Enterprise segments. Management emphasized that demand is broadening beyond initial hyperscale deployments into sovereign AI initiatives and enterprise workloads. For fiscal 2027, Dell expects AI server revenue of $74 billion, approximately three times the prior year's level. The company highlighted several competitive advantages driving this growth, including engineering expertise in optimizing solutions at the data center level, rapid scale deployment capabilities, 24/7 on-site support services, flexible financing options, and a robust ecosystem of partners including NVIDIA, OpenAI, AMD, Meta, and Google Cloud. The company's PowerRack infrastructure, purpose-designed for AI and HPC giga-scale deployments, positioned Dell as the #1 rack-scale infrastructure provider in calendar year 2025, with more than 2X the number of rack-scale servers shipped compared to the closest competitor. Infrastructure Solutions Group Performance The following charts detail ISG's revenue and operating income trends, demonstrating consecutive record quarters. Beyond AI servers, Dell's traditional server business showed remarkable strength, with revenue growing 122% year-over-year. Management attributed this growth to data center modernization efforts, as customers refresh installed bases and consolidate workloads onto newer, more efficient systems. The company gained more than 10 points of mainstream server share over the past two quarters, according to IDC data, and now holds the #1 position in mainstream server revenue with 33% share in Q1 calendar year 2026 trailing twelve months. As illustrated in the following market share analysis, Dell has consistently gained share over the past decade. The presentation emphasized that the majority of Dell's installed base is running on 14th generation servers or older, creating a significant consolidation opportunity. The company's 17th and 18th generation servers offer 4-5x to 8x more processing cores and 175-260% greater power efficiency, with each new server replacing 5-13 legacy systems. Storage revenue growth of 26% year-over-year marked the sixth consecutive quarter of Dell-IP demand growth above market rates. The company holds #1 positions in all major storage categories, including high-end, midrange, all-flash array, unstructured, and data protection hardware. ISG operating income reached $4.8 billion, up 225% year-over-year, with operating margin expanding to 15.0% of revenue -- an improvement of 620 basis points year-over-year. This marked the ninth consecutive quarter of double-digit or better operating income growth, demonstrating the segment's ability to scale profitably even as AI server revenue grew 100% year-over-year. Client Solutions Group Results The following charts show CSG's revenue and profitability trends across Commercial and Consumer segments. Dell's PC business delivered its eighth consecutive quarter of Commercial revenue growth, with total CSG revenue reaching $15.0 billion, up 20% year-over-year. Commercial revenue of $13.2 billion grew 22% year-over-year, representing the strongest growth in over four years, while Consumer revenue increased 7% to $1.8 billion. CSG operating income improved to $1.1 billion, up 42% year-over-year, with operating margin expanding 120 basis points to 7.6% of revenue. Management attributed the profitability improvement to pricing discipline and greater scale. The presentation highlighted that Commercial premium remains the company's primary focus area, where Dell has gained approximately 6 points of share to reach 29% in the 2Q calendar year 2026 trailing twelve months period. However, management noted an opportunity to increase profitable presence within the remaining 72% of the market across other segments. Management described CSG as Dell's "most capital-efficient business" and a significant source of cash generation and capital returns to shareholders. Financial Position and Capital Returns The following charts illustrate Dell's strong cash generation and record capital returns to shareholders. Dell generated $2.2 billion in cash flow from operations during the quarter, leading to year-to-date operating cash flow of $6.3 billion. Adjusted free cash flow reached $8.1 billion, up 224% year-over-year, with trailing twelve months adjusted free cash flow totaling $18.1 billion. The company returned a record $4.3 billion to shareholders during the quarter through share repurchases and dividends, reflecting what management called "commitment to capital deployment and long-term value creation." Dell ended the quarter with $14.2 billion in cash and investments and a core leverage ratio of 0.8x. Over the past five fiscal years, Dell has generated an average of $5.6 billion in adjusted free cash flow annually, returned $18.3 billion cumulatively to shareholders since dividend inception in fiscal 2023, and reduced its fully diluted share count by approximately 14% from Q4 fiscal 2022 to Q4 fiscal 2026. Forward-Looking Statements Dell raised its full-year fiscal 2027 guidance significantly, increasing the revenue outlook by $25 billion to $192.0 billion at the midpoint, representing approximately 70% growth year-over-year. The company also raised its non-GAAP diluted EPS guidance to $25.50 at the midpoint, up approximately 150% from the prior year. For the third quarter of fiscal 2027, Dell expects revenue of $49.0 billion (plus or minus $0.5 billion), up approximately 80% year-over-year, and non-GAAP diluted EPS of $6.50 (plus or minus $0.10), up approximately 150% year-over-year. Key assumptions underlying the guidance include ISG revenue growth of approximately 145% year-over-year in Q3 and 120% for the full year, with AI server revenue expected to reach approximately $19 billion in Q3 and $74 billion for the full year. Traditional server revenue is projected to grow just over 100% for the full year, while storage revenue is expected to grow in the mid-teens percentage range. CSG revenue is forecast to grow approximately 15% year-over-year in Q3 and in the mid-teens percentage range for the full year. Management expects non-GAAP operating expenses to remain at approximately 8% of revenue for the full year -- what the company described as the lowest rate in its 42-year history. Strategic Positioning The presentation outlined Dell's investment thesis centered on three strategic pillars: AI leadership driving growth, core business strength combined with capital efficiency, and commitment to shareholder returns. Dell emphasized its unique operating model built on four key competitive advantages: a leading end-to-end solutions portfolio with #1 positions across Client, Peripherals, AI and Traditional Servers, and Storage; the industry's largest go-to-market engine with an extensive direct sales force and broad global partner ecosystem; an industry-leading supply chain that is automated, AI-driven, resilient, and operating at global scale; and an unmatched global services footprint. The company's long-term financial framework targets 7-9% revenue growth, with ISG growing 11-14% and CSG growing 2-3%. Dell aims for 15%+ diluted EPS growth, greater than 100% net income to adjusted free cash flow conversion, and a target to return over 80% of adjusted free cash flow to shareholders. The company also committed to growing its dividend at 10% or better annually through fiscal 2030. Management highlighted that the company is applying AI to strengthen its own operating model, with AI projects focused on areas including coding assistants, knowledge management, sales chat and search, product advisors, predictive systems, parts planning, digital service assistants, and next best action recommendations. The presentation emphasized Dell's track record of execution, noting that non-GAAP diluted EPS more than doubled from $4.88 in fiscal 2021 to $10.30 in fiscal 2026, representing a 16% compound annual growth rate. The company achieved S&P 500 inclusion in fiscal 2025, completed the VMware spin-off in fiscal 2021, reduced core debt leverage to 1.4x exiting fiscal 2026, and enhanced board governance with a named lead independent director and 100% committee independence. Despite the strong results and raised guidance, Dell noted several ongoing challenges, including continued supply constraints in DRAM, NAND, CPUs, disk drives, mature-node parts, and AI-related components. The company said it is using configuration changes and demand shaping to maximize output given these constraints. Full presentation: This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Earnings call transcript: Dell beats Q2 2027 estimates, shares rebound after hours By Investing.com

Dell Technologies posted stronger-than-expected fiscal second-quarter results, with adjusted earnings of $7.04 a share on revenue of $47.0 billion, topping Wall Street estimates of $4.87 a share and $44.84 billion in sales. The company said revenue rose 58% from a year earlier, while net income and operating profit surged on the back of booming AI server demand, stronger storage sales and operating leverage. Shares, which fell 6.8% in the regular session to $425, rose 6.21% after hours to $451.40, partially reversing the earlier decline. Key Takeaways * Dell posted record quarterly revenue and record adjusted EPS in fiscal Q2. * AI server orders hit $60.9 billion, with backlog reaching a record $95 billion. * Full-year revenue guidance was raised by $25 billion to $192 billion at the midpoint. * The company said operating expenses fell to 8.5% of revenue, helped by scale. * Shares rebounded after hours, suggesting investors welcomed the beat and higher outlook. Company Performance Dell said the quarter reflected broad strength across its infrastructure and PC businesses, but the clearest driver was artificial intelligence. Infrastructure Solutions Group revenue climbed 89% to $31.8 billion, while traditional server and networking revenue rose 122% to $10.5 billion. Storage revenue increased 26% to $4.9 billion, and Client Solutions Group revenue grew 20% to $15.0 billion. The company said it is benefiting from a wave of data-center modernization as customers refresh older systems, add more memory and storage, and build infrastructure for AI workloads. Dell also said it gained more than 10 points of traditional server share over the past two quarters. With a market capitalization of $294.65 billion and revenue growth of 39% over the last twelve months, InvestingPro Tips highlight that analysts anticipate continued sales growth in the current year, reinforcing the strength of Dell's AI-driven expansion. The results extend a strong run for the company. Management said first-half revenue reached $90.8 billion, up 71% from a year earlier, while first-half adjusted EPS was $11.90, up 208%. Financial Highlights * Revenue: $47.0 billion, up 58% year over year. * Adjusted EPS: $7.04, up 203% year over year. * Gross margin dollars: $9.9 billion, up 78% year over year. * Gross margin rate: 21.1%. * Operating income: $5.9 billion, up 160% year over year. * Operating margin: 12.6% of revenue. * Net income: $4.6 billion, up 189% year over year. * Cash flow from operations: $2.2 billion. * Adjusted free cash flow: $8.1 billion. * Cash and investments: $14.2 billion at quarter end. Earnings vs. Forecast Dell beat expectations on both profit and sales. Adjusted EPS of $7.04 came in $2.17 above the $4.87 forecast, a surprise of 44.6%. Revenue of $47.0 billion beat the $44.84 billion estimate by $2.16 billion, or 4.8%. The size of the EPS beat was especially notable. It suggests Dell is converting revenue growth into profit at a faster pace than analysts expected, helped by scale, pricing discipline and a richer mix of higher-margin infrastructure products. The company also said operating expenses rose only 22% while revenue jumped 58%, a sign of strong leverage. Market Reaction Dell shares were volatile around the report. The stock closed the regular session at $425, down 6.8% from the previous close of $456.01, before rising to $451.40 in after-hours trading. That after-hours gain of 6.21% left the shares just below the prior close, but it marked a sharp recovery from the day's selloff. The stock remains near the upper end of its 52-week range of $110.22 to $514, reflecting a powerful run over the past year. According to InvestingPro data, Dell has delivered a remarkable 252% return over the last year and 188% over the past six months. However, the platform's Fair Value analysis suggests the stock may be overvalued at current levels, placing it among companies on the Most Overvalued list. The pre-earnings decline suggests investors may have been cautious heading into the report, while the after-hours rebound indicates the results and guidance were strong enough to ease some of those concerns. Outlook & Guidance Dell raised its full-year fiscal 2027 outlook. The company now expects revenue of $192 billion at the midpoint, up $25 billion from its prior view and roughly 70% above the prior year. It also forecast adjusted EPS of $25.50 at the midpoint, up about 150% from a year earlier. For the third quarter, Dell guided for revenue of $49.0 billion at the midpoint and adjusted EPS of $6.50. The company said AI server revenue should reach about $19 billion in the quarter. It also expects full-year AI server revenue of $74 billion, about three times last year's level. Management said operating expenses should remain around 8% of revenue for the full year, which it described as the lowest rate in the company's 42-year history. Dell also said it expects continued supply constraints in DRAM, NAND and other components, and it plans to keep optimizing available supply to meet demand. Executive Commentary Chief Executive Jeff Clarke said: "Another outstanding quarter. I am proud of how our team executed across the business, delivering record revenue and record earnings per share." He added: "Our modernization efforts are driving greater efficiency and significant operating leverage, enabling us to grow earnings faster than revenue." Clarke also said Dell booked a record $60.9 billion in AI orders in the quarter and exited with a record $95 billion backlog. He said the company's AI infrastructure business is broadening across neoclouds, sovereign customers and enterprises. Chief Financial Officer David Kennedy said the quarter showed "further evidence that AI momentum is accelerating," while traditional servers, storage and client systems also contributed. He said the company is entering the second half "from a position of strength." Risks and Challenges * Supply constraints: Dell said demand still exceeds supply, especially for DRAM and NAND, which can limit near-term growth. * Component shortages: The company also cited shortages in CPUs, disk drives, mature-node parts and AI-related components. * Pricing pressure and mix concerns: Some investors may question how much growth comes from pricing and richer configurations versus unit demand. * Margin moderation in PCs: Dell said client solutions operating margin may ease as it balances growth, share and profitability. * High expectations: After a strong run, the stock may remain sensitive to any sign that AI demand or margins are slowing. Q&A Analysts pressed Dell on whether growth in traditional servers and storage was driven by real demand or by pricing and pre-buys. Clarke said most of the growth came from enterprise customers modernizing data centers, refreshing older systems and adding more capacity for security and resiliency needs. Questions also focused on whether Dell's growth can remain this strong over the long term. Management said the company sees a more than $1 trillion opportunity as AI reshapes data-center infrastructure and that demand is broadening beyond training systems into inference, enterprise workloads and storage. Another topic was supply. Dell said the same constraints remain in place and that it is using configuration changes and demand shaping to maximize output. Analysts also asked about Project Lightning, Dell's parallel file system for AI use cases. Clarke said the product is still in beta with several customers and is being tested against competitors. Full transcript - Dell Technologies Inc (DELL) Q2 2027: Operator, Conference Call Moderator, Dell Technologies: Good afternoon, and welcome to the fiscal year 2027 second quarter financial results conference call for Dell Technologies Inc. I'd like to inform all participants this call is being recorded at the request of Dell Technologies. This broadcast is the copyrighted property of Dell Technologies Inc. Any rebroadcast of this information in whole or part without the prior written permission of Dell Technologies is prohibited. Following prepared remarks, we will conduct a question and answer session. If you have a question, simply press star then one on your telephone keypad any time during the presentation. I'd like to turn the call over to Paul Franz, head of Investor Relations. Mr. Franz, you may begin. Paul Franz, Head of Investor Relations, Dell Technologies: Thanks everyone for joining us. With me today are Jeff Clarke, David Kennedy, and Tyler Johnson. Our earnings materials are available on our IR website, and I encourage you to review these materials. Also, please take some time to review the presentation, which includes additional content to complement our discussion this afternoon. During this call, unless otherwise indicated, all references to financial measures refer to non-GAAP financial measures, including non-GAAP gross margin, operating expenses, operating income, net income, diluted earnings per share, free cash flow, and adjusted free cash flow. A reconciliation of these measures to their most directly comparable GAAP measures can be found in our web deck and our press release. Growth percentages refer to year-over-year change unless otherwise specified. Statements made during this call that relate to future results and events are forward-looking statements based on current expectations. Actual results and events could differ materially from those projected due to a number of risks and uncertainties which are discussed in our web deck and our SEC filings. We assume no obligation to update our forward-looking statements. Now, I'll turn it over to Jeff. Jeff Clarke, Chief Executive Officer, Dell Technologies: Thanks, Paul, and thanks everyone for joining us. Another outstanding quarter. I am proud of how our team executed across the business, delivering record revenue and record earnings per share. Revenue was $47 billion, up 58%, and earnings per share was $7.04, up 203%. These results reflect the compounding benefits of our competitive advantages, the breadth of our portfolio, and the strength of our operating model. Our modernization efforts are driving greater efficiency and significant operating leverage, enabling us to grow earnings faster than revenue. Customers no longer see IT environments simply as cost centers, but as value drivers that enable growth, productivity, and competitive advantage. As a result, they are expanding and reallocating budgets to support continued investment. This is creating opportunities across our portfolio from infrastructure to client devices. Our world-class supply chain and ability to serve customers across their IT environment are helping us meet more of their needs and gain share. Our deployment and service capabilities are helping customers integrate solutions across their IT environments and capture more value quickly. The proof is in our results. Over the past 12 months, we have booked more than $130 billion in AI server orders. In just the past two quarters, we have generated almost as much revenue from traditional servers and networking as we have in any prior full year in company history. Storage returned to growth and share gain, with strong demand for Dell IP storage products, and CSG revenue is growing at the fastest rate in five years. It is clear why demand for our solutions is exceeding available supply. Our results and guidance demonstrate the strength of our position as customers enter a new era of infrastructure modernization. Customers are modernizing their data centers for both AI and non-AI workloads, and the benefits are meaningful. AI is an important catalyst, but the opportunity extends well beyond AI-optimized infrastructure. AI requires modern, disaggregated architectures that keep data accessible and in motion across compute, storage, and networking. It is also accelerating investment across traditional IT environments as customers see greater performance, efficiency, and resiliency. Our AI server momentum continues to accelerate. We booked $60.9 billion of AI orders in this quarter, the most in our history. We are also seeing AI-related tailwinds in traditional servers and networking, along with early signs of increased storage demand as customers prepare, manage, and protect growing volumes of data. Deployment methods are evolving as well. On-prem and edge infrastructure offers attractive token economics for the right workloads while giving customers greater control over their data and intellectual property. Our portfolio, global reach, and deep customer relationships position us to help customers design, deploy the right solutions for their performance, cost, and security requirements. Together, these trends are expanding our addressable market and driving demand across compute, networking, storage, and PCs. This represents a significant long-term opportunity for us. It plays directly to our strengths and expands the value we can deliver across the entire IT environment. Now, on to the results. Starting with ISG, revenue increased 89% to a record $31.8 billion, with operating income of $4.8 billion and an operating income rate of 15%. In AI, demand continues to accelerate. In Q2, we booked a record of $60.9 billion in AI orders and recognized $16.4 billion in AI server revenue. We exited the quarter with a record $95 billion of AI backlog, and our pipeline continued to grow sequentially and remains multiples of our backlog, even after converting $131.7 billion into orders over the past 12 months. Demand is broadening across Neoclouds, sovereigns, and enterprise customers, and our customer count has surpassed 6,500. The scale and complexity of these deployments reinforce why customers choose us. AI infrastructure requires much more than assembling and delivering components. These opportunities demand significant engineering, design, and deployment expertise, with some engagements requiring upwards of 50 unique designs as customers optimize for workload performance, power, cooling, and the data center environment. This complexity plays to our strength. Our engineering capabilities, broad portfolio, global supply chain, and ability to deploy and support infrastructure at scale globally differentiate us, enable customers to move from design to production more quickly. We demonstrated those capabilities again by becoming the first to ship rack systems engineered on the NVIDIA Vera Rubin platform. The AI market is evolving rapidly, and we are focused on expanding our platforms and capabilities, solving increasingly complex customer challenges, and innovating across the infrastructure stack. With accelerating demand and a growing pipeline in differentiated capabilities, we are well-positioned to capture the opportunity ahead. Moving to traditional servers, revenue was up 122% as demand remains exceptionally strong, supported by multiple vectors of growth. First, a majority of our growth is coming from existing customers as they continue to refresh and modernize their data centers to support traditional workloads. Heightened security and resiliency requirements are also creating incremental demand as customers modernize their infrastructure. Second, we are seeing a growing trend of customers that require meaningful CPU compute capacity to support AI and agentic workflows. These workloads are creating incremental demand for traditional servers. We are executing very well against both opportunities and gaining share. Over the past two quarters, we have gained more than 10 points of traditional server share, and we expect to gain share again this quarter. With the majority of the install base still on 14G or older servers, we see a significant and durable refresh opportunity ahead. The strength and breadth of demand, combined with our continued share gains, demonstrate the competitiveness of our portfolio and the consistency of our execution. Turning to storage, revenue was up 26% as strong demand for our Dell IP portfolio translated into revenue growth and improved storage profitability. Dell IP delivered another record demand growth quarter, making this our sixth consecutive quarter of demand growth above market. Demand remains broad-based. Enterprises continue to modernize their storage environments as data growth increases the importance of keeping data available and secure. At the same time, we are beginning to see incremental demand from AI workloads, which require customers to prepare, manage, and move increasingly large volumes of data. We saw strong growth across PowerFlex, PowerStore, PowerProtect, and PowerVault, with PowerStore posting double-digit demand growth for the ninth consecutive quarter. PowerScale and ObjectScale also drove another exceptional quarter in unstructured storage, which has now grown at double digit or better for three consecutive quarters. Storage is becoming a more meaningful contributor to our growth and profitability. Dell IP continues to increase as a percentage of our storage mix, and margins continue to improve, supporting overall ISG profitability. Our share gains, expanding Dell IP mix, and accelerating pace of product development give us confidence in the opportunity ahead. Turning to CSG, revenue grew 20% with demand growth across all regions and verticals. Commercial revenue grew 22%, our eighth consecutive quarter of growth, with demand up for the 10th quarter. Large enterprise customers continue to refresh their PC install base, driving double-digit growth across all regions. More cost-sensitive customers are extending their upgrade cycles. This is increasing the number of older devices in the install base and extending the long-term refresh opportunity for CSG. Consumer revenue was up 7%, the fourth consecutive quarter of demand growth. CSG profitability remained strong, benefiting from price discipline and greater scale. In closing, we delivered record revenue and EPS with continued strong cash flow and record capital returned to shareholders. Our results reflects several reinforcing factors. First, infrastructure demand is growing structurally, driven by data center modernization, AI adoption, and attractive economics of deploying workloads on-prem. Second, our broad-based portfolio across AI infrastructure, traditional servers and networking, storage and PCs enable us to serve the full range of our customers' needs. Lastly, we delivered value at scale through our engineering and deployment expertise, supply chain scale, and fast discipline operating model. Our full-year operating expense rate guidance of approximately 8% of revenue is the lowest in our company's 42-year history, demonstrates the operating leverage this model can deliver. These advantages reinforce one another. They are driving growth, share gains, profitability, and cash generation. By creating more value for our customers, we compound our advantages and create durable cash flow and long-term value for our shareholders. I am proud of our team's performance. We enter the second half with strong momentum and confidence in our position. With that, let me turn it over to David to walk through the financials and our outlook. David Kennedy, Chief Financial Officer, Dell Technologies: Thanks, Jeff. We delivered another record quarter, capping a very strong first half of the year. The team executed exceptionally well, driving record revenue, record EPS, and record shareholder returns. Total revenue was up 58% to $47 billion. Gross margin dollars grew 78% to $9.9 billion. Gross margin rate was 21.1%, driven by an improvement in ISG margin rate and a higher mix of ISG revenue. Operating expenses were up 22% to $4 billion, primarily from variable compensation tied to our outperformance. Building on last quarter, we continued to drive significant scale in the P&L, with OpEx down 250 basis points to 8.5% of revenue. Operating income grew 160% to $5.9 billion or 12.6% of revenue, driven by higher revenue, scale, and price discipline across servers, storage, and CSG. Net income was up 189% to $4.6 billion, primarily driven by strong operating income. Diluted EPS increased 203% to $7.04, a record. Moving to ISG. ISG delivered record revenue of $31.8 billion, up 89%, marking the 10th consecutive quarter of double-digit or better revenue growth. AI server momentum accelerated, and we set records across the board, including $60.9 billion in orders, $16.4 billion in revenue, and $95 billion in ending backlog. Traditional server and networking revenue was $10.5 billion, up 122%, as demand continued to outpace supply. Storage revenue was $4.9 billion, up 26%, with strong demand across the Dell IT portfolio, driving revenue growth and significant margin contribution. Dell IT storage demand has grown above market for six consecutive quarters. Unstructured storage remained one of our fastest-growing solutions, with broader strength across the rest of the portfolio. ISG operating income was a record $4.8 billion, up 225%, marking the ninth consecutive quarter of double-digit or better growth, primarily driven by higher revenue across the business. Operating margin was 15%, up 620 basis points. Looking at the key drivers of margin performance, a number of factors came together and went our way this quarter. The demand environment was strong, mix and rates were favorable, and the team executed with discipline. While we would not expect every benefit to continue at this level, the quarter also reflects meaningful structural improvements in the business, which is reflected in our second half guidance. Looking more closely at the drivers, first, we are realizing the benefits of our multi-year modernization journey. That work is driving greater efficiency and strong operating leverage, resulting in significant scale. Second, storage profitability was up with a higher mix of Dell IT and rate expansion across the solutions. Third, we maintained strong operational price discipline in a dynamic environment, reflecting our team's strong execution and continued focus on supporting our customers. Turning to CSG. CSG revenue was up 20% to $15 billion. Commercial revenue grew for the eighth consecutive quarter, up 22% to $13.2 billion, and consumer revenue increased 7% to $1.8 billion. CSG operating income was $1.1 billion, or 7.6% of revenue, driven by pricing discipline and the benefits of scale in the P&L. We will continue to balance customer demand with availability of supply to drive profitable share gain. CSG remains an integral part of the business. It provides scale across our supply chain and manufacturing, completes our end-to-end portfolio with the essential productivity device, and is our most capitally efficient business. Together, these strengths make CSG a significant source of cash generation and help fund growth across Dell and capital returns to our shareholders. Moving to cash and the balance sheet. We delivered another strong cash quarter with cash flow from operations of $2.2 billion and adjusted free cash flow of $8.1 billion. This was primarily driven by sequential revenue growth and higher profitability. We returned an all-time record, $4.3 billion to shareholders this quarter, including repurchasing 9.5 million shares at an average price of $401 per share and paying a dividend of approximately $0.63 per share. This acceleration in shareholder return, up $2.2 billion quarter-on-quarter, reflects our agility and commitment to capital deployment as we generate more significant adjusted free cash flow, as well as our confidence in our long-term value creation. We ended the quarter with $14.2 billion in cash and investments, up $0.2 billion sequentially, and our core leverage ratio is at 0.8x. Overall, our strong cash generation and healthy balance sheet further validated by positive credit rating actions during the quarter provide significant flexibility to invest in the business and continue returning capital to shareholders. Turning to guidance. We've had a strong first half of the year, and we expect the second half to be stronger. The momentum we've seen continues, and we are raising our expectations across every line of business. Our second half gross margin rate outlook has improved over the past 90 days, and we continue to drive significant operating leverage and scale. For Q3, we expect revenue to be $49 billion at the midpoint, up roughly 80% year-on-year. We expect ISG to grow roughly 145%, supported by $19 billion in AI server revenue. CSG revenue is expected to be up roughly 15%. Operating expenses are expected to be down low single digits sequentially. Operating income is expected to grow roughly 120%. We expect ISG operating income rate to be up just over a point year-over-year, even as AI server revenue more than triples year-over-year. We expect CSG operating income rate to moderate to roughly 6% as we balance demand, share, and profitability. We anticipate a diluted share count of approximately 651 million shares. Diluted non-GAAP earnings per share is expected to be $6.50, up over 150% at the midpoint. For the full year, we are raising our revenue guide by $25 billion to $192 billion at the midpoint, up roughly 70%, with diluted non-GAAP EPS of $25.50, up approximately 150%. We expect ISG to grow roughly 120%, driven by AI server revenue up 3x year-over-year to $74 billion. We expect traditional servers to grow just over 100%, storage up in the mid-teens, and CSG revenue to grow in the mid-teens. Excluding the mix impact of AI servers, gross margin rates are up year-over-year. Our modernization efforts are paying off, simplifying, standardizing, automating, and enhancing our operating model with AI, delivering significant operating leverage with operating expenses to be approximately 8% of revenue, the lowest level in the company's 42-year history. With gross margin improvement and the benefits of significant scale, operating income is expected to grow approximately 120%, with over two points of rate improvement year-over-year. I&O is expected to be between $1.4 billion and $1.5 billion. Diluted non-GAAP earnings per share is expected to be $25.50, up approximately 150% at the midpoint. In closing, we've delivered another exceptional quarter, capping a record first half of the year. Over the past two quarters, revenue was $90.8 billion, up 71%. EPS grew 208% to $11.90. We generated record cash flow from operations of $6.3 billion and returned an all-time record $6.3 billion to shareholders. The team executed exceptionally well across the business. The second quarter provided further evidence that AI momentum is accelerating, with $60.9 billion in orders, $16.4 billion in revenue, and a backlog approaching $100 billion. At the same time, traditional servers, storage, and CSG all contributed, reinforcing the breadth and balance of our portfolio. Beyond the numbers, I would highlight the operating discipline. The modernization work we've invested in over several years is showing up in scale, in margin structure, and in our ability to execute in a dynamic supply environment. We're entering the second half from a position of strength and will continue to balance growth with discipline to drive long-term shareholder value. We are seeing the compounding benefits of our durable competitive advantages, differentiated operating model, and operational discipline. We're excited about the second half and confident in our long-term value creation. Thank you to the team for their execution, and thank you all for your time today. Now I'll turn it back to Paul to begin Q&A. Paul Franz, Head of Investor Relations, Dell Technologies: Thanks, David, and let's get to Q&A. In order to ensure we get to as many of you as possible, please ask one concise question. Let's go with the first question. Operator, Conference Call Moderator, Dell Technologies: Thank you. Our first question comes from Amit Daryanani with Evercore. Amit Daryanani, Analyst, Evercore: Yep. Thanks a lot. Good afternoon, everyone, and congrats on a really nice print here. I want to spend some time on the non-AI part of ISG. If I look at traditional server growth of 122%, it was actually faster than AI compute, and storage grew 26% as well. I think a worry folks will have is this driven by a combination of pricing and pre-buys rather than real demand? I do not know if you can spend some time just talking about what do you think is driving this demand, and if there is a way to think about pricing versus demand versus share gains and really any color on what workloads or use cases are you seeing this infrastructure going into and the durability effect would be helpful. Thank you. David Kennedy, Chief Financial Officer, Dell Technologies: Sure, Amit. Let me try a little bit. If you look at traditional servers and what we are seeing, which is the vast majority of the growth that we saw in the quarter, it is a consistent theme that I think we talked about last quarter. One, there is a modernization in the data center. Jeff Clarke, Chief Executive Officer, Dell Technologies: That modernization continues to drive consolidation. It is increasing space, driving power efficiency and cooling, and it is obviously driving demand. Demand for new servers that have more cores, new servers that have more DRAM, and new servers that have more storage in them as we consolidate an aged install base. Secondly, that is probably the next big opportunity for us. As much as we have modernized, and to give you a sense that it is not an end near or it is a one-time thing, we still have 1.2 million assets that are 14G or older in the install base. They have to be upgraded. They're going to have to be consolidated with new technology, whether it's our 17G and the consolidation ratios are 6 to 8 to 1, or our new 18G that will begin shipping next month, where we see consolidation rates in the 12 to 14 servers per new 18G server. That is going to happen, and a forcing function is going to be the security environment that we live in today. We think about what's happening in the world of security and driving increased resilience and new requirements like post-quantum cryptography coming online, old infrastructure has to be updated. Then increasingly, we're seeing enterprises drive AI workloads, specifically agentic workloads. I know your question was specifically the non-ones, but it's complemented by growth there. In storage, we see a very similar dynamic. We have the dynamic of our products are very competitive in the marketplace. Data continues to grow. Regardless of the inflationary environment that exists, more data is being created on the planet at the edge and data centers in the cloud, and that data has to be stored, it has to be encrypted and protected, and those are the opportunities that we see, which is why we believe our Dell IP portfolio has a pretty significant tailwind. Think about it. I think if we blend Q1 and Q2 together, we grew storage 17% in the first half of the year. We continue to see our Dell IP storage growing ahead of the market for six consecutive quarters on a demand basis. We could run off a bunch of fun numbers. PowerStore has now grown 10 consecutive quarters in a row. We got PowerScale five quarters in a row, ObjectScale four quarters in a row, Data Domain three quarters in a row. Our All-Flash Array have grown now 10 quarters in a row. So there is inherent demand. Our products are more competitive, and we're seeing that play out in the marketplace from the largest enterprise customers down to small and medium-sized businesses. Then there's also the opportunity to grow with AI, which is driven by agents and KV cache and new techniques in the AI world. I hope that helps. David Kennedy, Chief Financial Officer, Dell Technologies: To add, Jeff, I think it's part of the durability of that growth and demand. Again, we see as part of our guide, our second half growth rates maintaining what you've seen in the first half. Jeff mentioned the 70% growth in storage, pretty similar mid-teens for the second half. We'll continue to guide to traditional server growing triple digits again for the second half as we drive that through. We continue to see pipelines build. We continue to see the use cases that Jeff mentioned. It all points to a more broad-based, more durable ecosystem. Jeff Clarke, Chief Executive Officer, Dell Technologies: Thanks, Colin. Operator, Conference Call Moderator, Dell Technologies: The next question will come from Ben Reitzes with Melius Research. Ben Reitzes, Analyst, Melius Research: Hey, guys. Thanks, I will echo pretty impressive quarter and guide there. Wanted to ask about a little longer term. Your partner in AI servers talked about growing 70% next year in overall revenue. You guys are growing faster than that. Your backlog just surged. You also have these CPU racks that are new, adding to traditional servers. Should you grow kind of in line with NVIDIA for next year? You guys are really part of the APIE segment they have. Do you see that kind of growth rate in your future? Anything you want to say about your long-term growth rate, given it is so much better than expected, would be appreciated. Thanks. David Kennedy, Chief Financial Officer, Dell Technologies: Thanks, Ben. Look, I think if you anchor in on our second half trajectory, building on the last question, you can see we like the position in relation to the durability that we see in the demand. We see it across the portfolio, and that is giving us tremendous leverage. As we continue to grow that scale that we get in the P&L, again, offers us the opportunity to continue to find scale and growth in the business. The second half growth, which is 68%, is pretty much a mirror image to the first half, 71%. It is obvious we are seeing signs where the data center is turning in from this cost center approach to a value creator. The ecosystem of the enterprise customers that we are seeing are starting to embrace that. There's lots of complexity in execution. I think right now, really keen to execute a strong second half, continue that great momentum as we go through the second half of the year. I think we'll be in a great position at that point, and we'll continue to look for the growth going forward. Jeff Clarke, Chief Executive Officer, Dell Technologies: Ben, maybe some more context around that. Our five-quarter pipeline grew sequentially. That's after booking $131.7 billion of orders over the past four quarters. I think that gives you a sense of what's happening today. If I look at the longer-term trends, I know you're a believer of this, but as we see it, agentic demand is reshaping the data center and the underlying infrastructure. Inference is past training and is pure demand on our industry. We think the tokens that inference drives is going to grow 87 times to 3,600 quadrillion tokens by 2030. Training demand grows 5x to 850 zettaflops by 2030. Enterprise agentic is expected to be the single largest workload by 2028. We're expecting AI to be 75% of all data center demand by 2030, adding 200 gigawatts of power over that same timeframe, and half of that, we believe, is right in our sweet spot with our customers, the Neocloud sovereigns and enterprises. If you look at that math, we think the opportunity in front of us is more than a trillion dollars over that timeframe. We believe we're well-positioned. We believe that our model is differentiated, that our engineering is differentiating ourselves with every customer that we interact with. The scale of our deployment capabilities is unmatched globally. We believe what we're doing on the support side is equally important, helping customers ramp getting to that first token faster than anyone else, and then keeping it running. The DFS component that we have to help customers in that bridge point from an order to that first token is something that we believe is differentiating us, and we're going to continue to focus on that. If you believe that demand is there, it drives more servers in the agentic workload, and it drives more data around that agentic workload, growing each of those areas for us as well. Thanks, Ed. Operator, Conference Call Moderator, Dell Technologies: Our next question will come from Mark Newman with Bernstein. Mark Newman, Analyst, Bernstein: Mark, thanks so much. Congrats again on the fantastic numbers. Probably a few more details on the huge strength you are seeing in both traditional and AI servers. First of all, for traditional servers, this has been traditionally almost all enterprise customers. I believe you are lumping in the CPU racks, the agentic AI servers that are CPU racks in there, I believe. Is this traditional server category still almost all enterprise, or are you seeing a portion of that from, say, Neoclouds or CSPs? Then similarly for the AI server customer mix, both revenue and orders. I know majority in the past has been Neoclouds or tier 2 CSPs. Is that still the same? I wondered if you could give us any hints in terms of the relative growth rate between enterprise versus other larger customers in the AI server mix. Because previously you said enterprise had been growing faster, I just wondered if that is still the case given the huge step up, particularly in the orders. Thanks very much. Jeff Clarke, Chief Executive Officer, Dell Technologies: You bet. Mark, traditional server, the 122% growth, it is primarily our historical enterprise customers. I would stress demand outstrips supply. Demand was even greater than the results that we published there. We are supply constrained. But demand is from our traditional enterprise customers. That is where the vast majority of the workloads are. That is where the modernization is occurring. That is where the aged install base is. That is where the heightened awareness around security and resiliency has been driving demand. I introduced last quarter that we are beginning to see AI servers, and when I talked about that, it would be the same that happened this past quarter, that there are Neoclouds buying that. Some of our high-frequency trader customers are buying those types of servers, as well as very advanced in their AI deployments, our largest and most sophisticated enterprise customers. So vast majority of that 122% growth are traditional customers across all segments, all geos. AI servers are beginning to show up with that set of customers, which is exciting to see. That grew quarter-over-quarter. It grew across Neoclouds. It grew across our HFT customers as well as our enterprise customers. So that is exciting to see. And then the mix inside our traditional AI business is exciting, and something that we have talked about, and I think we mentioned in our remarks, we now have more than 6,500 customers buying Dell AI Factory. 3,300 of them have happened in the last three quarters. It took us eight quarters to get to the first 3,200. That acceleration is enterprise. Enterprise customers grew quarter-over-quarter, year-over-year. Repeat buyers grew quarter-over-quarter and year-over-year. Enterprise revenue grew quarter-over-quarter and year-over-year, and the pipeline of enterprise customers grew sequentially as well. So we are seeing more enterprise customers. The mix did not necessarily change because we are still winning on the sovereign side as well as the large Neocloud side. But the momentum with enterprise, best measured by number of customers, the number of customers that are buying repeatedly is all up and the indicators are strong. And they tend to buy more storage, and they tend to buy more networking when they engage with us, a more complete solution. I hope that helped. Thanks, Mark. Mark Newman, Analyst, Bernstein: Yeah. Thanks so much. Operator, Conference Call Moderator, Dell Technologies: And we'll take a question from Cat. Jeff Clarke, Chief Executive Officer, Dell Technologies: That work has to be retained. Depending on what type of customer you are, there's compliance and regulatory requirements about how long that's got to be retained and what the protection policies are with that. You have another new source of growth for storage. You see the same happening with KV cache and how it's being used in driving more efficient inference. We see multiple new lines or new paths for storage growth in our businesses. If we think about this across agentic workloads as we head towards physical AI and what's going to happen in manufacturing and IoT sensors and robotics, which drive tremendous amounts of multimodal unstructured data, Arthur likes to call it unstructured repositories. There's a lot of structured data in databases. The growth of that is immense, and we actually see it accelerating, not slowing down. That goes the AI engines to make sure that they can actually produce something even more worthwhile to help the agents be more efficient, et cetera, to help training. That virtuous cycle, we believe, is just starting. As we understand it today, we're very optimistic about the growth of storage going forward in the AI world. We're positioned quite well across all of our storage assets. We protect data. We store all forms of data. As we build more of our data automation platform, we think about our data management work, I think we have a huge opportunity to grow and to be even more important to our customers as their data needs grow. Thanks, sir. Operator, Conference Call Moderator, Dell Technologies: Our next question will come from Asiya Merchant with Citi. Asiya Merchant, Analyst, Citi: Great. Thanks for taking my question, and great results here. Can I just ask a little bit about supply? Jeff Clarke, I know you mentioned supply constraints. Maybe if you can just help us understand where the supply constraints, have any things changed from the last quarter? Clearly, some of the component makers are talking about supply agreements that have been signed. How do you think about your supply going ahead, and what we should think about where some of the incremental supply constraints are perhaps relative to last quarter in order to meet the demand durability that you're talking about even going into next year? Thank you. Jeff Clarke, Chief Executive Officer, Dell Technologies: You betcha. How I think about supply, as I'm often reminded by our sales force, it's not enough. We are doing everything we can to get more supply. In today's environment, that's a very difficult task. What we've been doing is, I think, optimizing the bits and bytes that we have coming in, whether that be with configuration, that being building net sets to maximize the output of the corporation out of the factories. Our ability to increase guidance by the $25 billion is a direct reflection of our ability to optimize what's coming in, shaping demand, planning it accordingly, and getting it out the door. One of the things that we did earlier this year as we saw the PC market showing signs of softening in the second half, we optimized the bits and bytes we have towards the infrastructure business. There's a lead time associated with that. We're working through that lead time, which is part of why the second half looks a little better. We've been able to realize greater shipments as a result of that. The constraints remain the same. DRAM, DRAM, followed by NAND, NAND. We have spotty CPU shortages. There are shortages with disk drives. If you go further down in the supply chain, just about every product going through a leading node is constrained. Mature nodes that are building MOSFETs, power ICs, microcontrollers, drivers are constrained. There's shortages of ABF substrate, T-glass, all of which we monitor. There's shortages in optical. The AI supply chain is working red line all out to build Coolant Distribution Units, power racks. Welcome to the life of a supply chain person at Dell Technologies. This is what we do, chasing parts. We love it. Trying to optimize the outcomes for the company. I think we've done largely a good job of that with the second half guide up, and we'll continue to focus on trying to get more supply and take the supply we have and optimize the output. Thanks, Asiya Merchant. Operator, Conference Call Moderator, Dell Technologies: The next question will come from Aaron Rakers with Wells Fargo. Michael Tsvetkov, Analyst (on behalf of Aaron Rakers), Wells Fargo: Hi, guys. This is Michael Tsvetkov on behalf of Aaron. Thanks so much for letting me ask the question. I wanted to ask on the storage business, obviously very strong. Within that, you mentioned several solidly performing Dell IP portfolio products. One of which I wanted to ask about is Project Lightning. How is that contributing at this point, and what level of attach are you seeing to those cloud AI server deals? Jeff Clarke, Chief Executive Officer, Dell Technologies: For Project Lightning, our parallel file system. There's an echo, sorry. Parallel file system designed for native AI use cases. We continue to have the product out in the field. We continue to see interest. It's still a relatively new product. It's in beta at several customers. We're in runoffs against other competitors with the product. That will continue, and as it builds momentum, I'm certain we'll give you an update in the future. But that's where Project Lightning is at the moment. Thank you. Thank you. Operator, Conference Call Moderator, Dell Technologies: Our next question will come from Joseph Cardoza with JPMorgan. Joseph Cardoza, Analyst, JPMorgan: Hi, guys, and congrats on the results here. Thanks for the question. Maybe can you guys, and I know you guys haven't talked about the traditional business here at length, but maybe just curious if we break down the growth that you're seeing on the traditional server and storage side between volume and pricing. Relative to your earlier view, how much of the upside is coming from each of those vectors? Maybe more importantly, as you think about going forward and the momentum you're seeing in the business, how are you thinking about headroom for customers to keep on digesting these higher prices? In your customer discussions, are you starting to see any pushback there? Thank you. Jeff Clarke, Chief Executive Officer, Dell Technologies: Parsing servers and storage by revenue and growth. Let me try. If I look at servers and what we're seeing in traditional servers, we're seeing, again, this notion of modernization that's driving higher core count, more DRAM, and more storage. Those configurations are part of this modernization or consolidation, and they continue to grow rapidly. They cost more than they did last quarter and the quarter before and the quarter before. So there's a notion of inflation inside our growth. But the underlying demand for the technology is significant. I think about the new use cases, that's all new use cases, all new growth, which is being driven by agentic AI, essentially running the harness, if that makes sense. We continue to be optimistic about the prospects. Again, demand outran supply last quarter. Demand outran supply this quarter. The pipeline remains robust. David just gave an update on guidance of the server business, which is very healthy. Clearly, there's a component of that driven by the price increases as our input costs continue to go up. Storage is a very similar story, as I think I mentioned in one of the earlier questions. As we see a ramp down of our partner IP portfolio, it's being offset by more units in our Dell IP portfolio that come with higher revenue and higher margin rates. We're seeing a greater use of our storage products in AI applications, which is good to see, most notably with our unstructured products, which had unprecedented growth. Again, but I rattled off a bunch of numbers earlier about every category of our traditional or core Dell IP portfolio growing multiple quarters now. The Dell IP stack has grown six consecutive quarters now ahead of the marketplace. We expect to take share again. Clearly, some of that is uplifted by the increased cost of the underlying material. Our software-defined products are doing well in the storage portfolio, which is incremental business for us. I hope that gave some color. Thanks, and we'll take one more question before we go to the close. Operator, Conference Call Moderator, Dell Technologies: That question will come from David Vogt with UBS. David Vogt, Analyst, UBS: Great. Thanks, guys, for squeezing me in. Maybe for Jeff and David, can you help us understand sort of the long-term margin differentials as customers modernize to next gen servers off of older generation servers like 14G on the way to 17G, 18G? How much of the margin uplift that you're seeing in ISG comes from a like for like margin lift as we modernize data centers versus sort of your efficiency improvements and scale economics that you're seeing just from more volume going through the supply chain? Thanks. David Kennedy, Chief Financial Officer, Dell Technologies: Yeah. I mean, if you look at our Q2 results here, ISG up 15 points. Obviously, tremendous performance. As Jeff Clarke outlined it earlier, the number one driver here is a scale conversation, given the growth that we are seeing and the accelerated growth that we are seeing. That for the ISG business was a driver of just over 400 basis points. For the full year guide, it is worth over 650 basis points. You see the leverage that we can adopt into the ecosystem. Outside of that, you then, as you do your storage growth, and again, as we drive that 13% guide or 15% guide, excuse me, for the full year, that $2.5 billion of incremental storage is a huge drag in terms of revenue dollars that we have pushed through. As you look at our guide for the second half of the year then for ISG, you will see it is up over a point in the second half, and you will see it grow from Q3 to Q4 also, even with the expansion of AI, which is over 3x growth year-on-year at the $74 billion guide. So all of that is kind of contributing to a robust portfolio. Across the rest of the portfolio, it is really about product mix, geo mix, and just traditional execution, pricing discipline, and operational rigor across our supply chain engineering and sales teams. Operator, Conference Call Moderator, Dell Technologies: All right. We will move it over to Jeff Clarke to close this out. Jeff Clarke, Chief Executive Officer, Dell Technologies: Sure. Thanks, Paul Franz. Thanks, everyone, for joining us today. Our advantages are compounding, our addressable opportunity is expanding, and our differentiated operating model is delivering significant leverage, with our full-year OpEx rate at a 42-year low. We raised our full-year guide by $25 billion to $192 billion, with $25.50 of EPS. We are optimistic about a stronger second half and the momentum we carry into next year. Thanks, everyone, for your time today. Operator, Conference Call Moderator, Dell Technologies: Thank you. That does conclude today's conference with you. Thank you for your participation, and have an excellent day. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

BofA raises Dell stock price target on AI server demand outlook By Investing.com

Investing.com - BofA Securities raised its price target on Dell Technologies stock (NYSE:DELL) to $505 from $500 while maintaining a Buy rating. The firm expects Dell to report second-quarter fiscal 2027 results after market close on Tuesday, September 1. BofA anticipates Dell will guide third-quarter revenue to $42 billion to $43 billion and earnings per share to $4.40 to $4.60.The stock has surged 278% over the past year, trading at $456 against BofA's new $505 target. According to InvestingPro analysis, Dell appears overvalued relative to its Fair Value, though the company maintains strong momentum with revenue growth of 39% in the last twelve months. For fiscal 2027, BofA expects Dell to raise revenue guidance to a range of $171 billion to $175 billion, with EPS of $18.90. The firm notes upside remains primarily limited by availability of SSDs, memory, and customer datacenter readiness rather than demand. BofA models $65 billion in AI server revenue for fiscal 2027 versus Dell's current guidance of $60 billion. The firm cites the scale of backlog, continued order activity, and visibility into multi-quarter deployments as supporting factors. The firm expects focus on the magnitude of AI server demand versus supply, the durability of ISS strength, and whether storage growth is beginning to show more visible AI pull-through.For deeper insights into Dell's AI growth strategy and financial health, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro alongside additional expert tips and metrics. In other recent news, Dell Technologies is set to report its earnings on September 1, with expectations of significant movement in its stock based on options data. Evercore ISI has reiterated an Outperform rating on Dell, citing strong demand for AI servers and anticipating the company will exceed revenue and earnings estimates for its upcoming report. The firm has also raised its price target for Dell to $550, highlighting the potential for growth in its storage portfolio as enterprises increase on-premises workloads. Additionally, Citi analysts project strong earnings results for hardware original equipment manufacturers, driven by AI infrastructure demand and increased CPU usage. Dell's shares have also been positively influenced by Lenovo's strong quarterly results, which showcased a notable revenue increase. These developments reflect a broader trend of optimism around AI infrastructure and its impact on revenue growth for companies like Dell. As the company prepares for its earnings release, investors are closely watching for any updates on its fiscal guidance and performance metrics. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.