Dell and HP poised for earnings reports amid AI-driven stock rally

Two of enterprise tech’s most recognizable names are about to show their homework. Dell Technologies and Hewlett Packard Enterprise are set to report quarterly earnings this week, with Dell reporting after the market close on September 1 and HPE following a day later. Dell shares have surged over 260% year-to-date, while HPE has climbed roughly 120%, both riding a wave of explosive demand for AI-optimized server infrastructure.

The numbers sound almost fictional. Dell’s AI server revenue hit $16.1 billion in its most recent quarter, up 757% year over year. Its AI-related order backlog currently sits at $51.3 billion. Dell recorded Q1 FY2027 revenue of $43.8 billion, up 88% year over year, making the upcoming Q2 report a test of whether that momentum can be sustained.

What the market is expecting

Consensus estimates for Dell’s upcoming quarter point to revenue around $44.5 billion, which would represent roughly 50% growth year over year. Analysts are also modeling earnings per share near $4.90, more than double the figure from the same period last year.

HPE’s targets look a bit less stratospheric but still demanding. Analysts project revenue of approximately $12 billion for its September 2 report, with earnings per share around $0.93.

Bank of America analyst Wamsi Mohan raised price targets for both ahead of the prints, lifting Dell to $505 and HPE to $82. His thesis centers on continued strength in AI server demand combined with improving operational efficiency.

The pressure building beneath the surface

Despite the broader optimism, Dell’s stock slipped roughly 4% on September 1, ahead of its report, reflecting profit-taking behavior from investors who have watched the stock triple.

Supply chain constraints add another layer of complexity. Both companies have flagged pressures from memory and GPU shortages, which can compress margins even when top-line demand is strong.

There’s also the question of mix. Not all AI server revenue is created equal. Some of it comes through high-margin direct sales; some comes through lower-margin channel partnerships. How that mix shakes out in any given quarter can swing profitability in ways that aren’t obvious from the headline revenue figure alone.

What comes next for AI infrastructure stocks

Dell’s $51.3 billion AI backlog suggests the company has more orders than it can currently fulfill. Investors will be watching how much of that backlog converts to recognized revenue in the coming quarters.

The earnings reports this week won’t just move Dell and HPE shares. They’ll function as data points for the entire AI infrastructure trade, informing how investors think about the sector’s growth rate and how long the current demand supercycle can run.