Photo: Tima Miroshnichenko / Pexels
Dell raises fiscal year guidance to $192B after strong Q2 results
AI server demand is turning Dell into a very different company than the one most people remember
Dell Technologies just posted a quarter that would make its 2019 self unrecognizable. The company reported Q2 fiscal year 2027 revenue of $47.0 billion, a 58% jump from the same period a year ago, and promptly raised its full-year revenue guidance to $192 billion. That revised target implies roughly 69% year-over-year growth for the fiscal year, up from the previous guidance of $167 billion.
The numbers behind the guidance raise
Dell’s AI-optimized server business pulled in $16.4 billion in revenue during Q2 alone, doubling year-over-year.
Non-GAAP diluted earnings per share came in at $7.04, a 203% increase compared to the year-ago quarter. The company updated its full-year non-GAAP EPS guidance to $25.50.
Operating cash flow hit $2.2 billion in the quarter. Dell returned $4.3 billion to shareholders through a combination of dividends and share repurchases during Q2.
The traditional server and networking segment revenue climbed 122% year-over-year. Storage revenue grew 26%, while client solutions increased 20%.
AI, tech, and the markets they move—in one daily briefing.
Daily. Free. Join 34,000+ readers across crypto, finance, and policy.
A $95 billion backlog tells the real story
Dell’s AI backlog reached a record $95 billion exiting Q2. Orders booked during the quarter totaled $60.9 billion for AI-optimized servers.
From box maker to AI infrastructure giant
Dell’s fiscal year 2024 revenue was in the low-$90 billion range, and fiscal year 2026 concluded with record annual revenues of $113.5 billion, a 19% year-over-year increase. The company is on track to reach $192 billion in fiscal year 2027, more than doubling its top line in roughly three fiscal years. Dell’s initial FY27 revenue projection was $140 billion before being revised upward multiple times to the current $192 billion target.
Michael Dell took the company private in 2013, merged it with EMC in 2016, and brought it back to public markets in 2018.
What this means for the AI hardware market
Dell competes with Hewlett Packard Enterprise, Super Micro Computer, and Lenovo for enterprise server contracts.
A $95 billion AI backlog exiting Q2 means the demand pipeline extends well into calendar 2026 and potentially beyond. The EPS guidance raise to $25.50 reflects a tripling of earnings per share year-over-year while growing revenue at nearly 70%.