Dell Technologies reported record fiscal second-quarter 2027 results, driven by accelerating demand for AI infrastructure and broad-based growth across its server, storage, and client businesses.
Second-quarter revenue reached a record $47.0 billion, increasing 58% year over year from $29.8 billion. GAAP operating income increased 204% to $5.39 billion, while net income surged 255% to $4.13 billion.
Diluted GAAP earnings per share reached a record $6.34, up 273%, while non-GAAP diluted EPS increased 203% to a record $7.04.
The biggest growth driver was Dell’s AI infrastructure business.
Dell booked a record $60.9 billion of AI server orders during the quarter, generated a record $16.4 billion of AI-optimized server revenue and exited the quarter with a record $95 billion AI server backlog.
AI-optimized server revenue doubled year over year during the quarter and reached $32.5 billion for the first six months of fiscal 2027, more than tripling from $10.1 billion in the comparable prior-year period.
Growth extended well beyond AI servers.
Dell’s Infrastructure Solutions Group generated record quarterly revenue of $31.8 billion, up 89% year over year. Traditional Servers and Networking revenue jumped 122% to a record $10.5 billion, while Storage revenue increased 26% to a record second-quarter $4.9 billion.
ISG operating income climbed 225% to a record $4.8 billion, with operating margin expanding to 15% from 8.8% a year earlier.
The Client Solutions Group also posted growth across both commercial and consumer markets.
CSG revenue increased 20% to $15.0 billion, led by record Commercial Client revenue of $13.2 billion, up 22%. Consumer revenue increased 7% to $1.8 billion.
CSG operating income rose 42% to $1.14 billion, while operating margin improved to 7.6% from 6.4%.
Dell generated $2.2 billion in operating cash flow during the quarter. Adjusted free cash flow reached $8.15 billion, up 224% year over year. For the first six months of fiscal 2027, adjusted free cash flow totaled $11.3 billion, representing growth of 138%.
The company also returned a record $4.3 billion to shareholders during the quarter through share repurchases and dividends.
Dell’s board declared a quarterly cash dividend of $0.63 per common share, payable October 30 to shareholders of record as of October 20.
Following the strong quarter and accelerating AI demand, Dell substantially increased its fiscal 2027 outlook.
The company raised full-year revenue guidance by $25 billion, from $167 billion to $192 billion, representing expected year-over-year growth of 69%.
Dell also increased its full-year AI-optimized server revenue forecast from $60 billion to $74 billion, representing approximately 200% year-over-year growth.
Full-year GAAP EPS is now expected to reach $24.37, up 181% year over year, while non-GAAP EPS is expected to reach $25.50, up 148%.
For the fiscal third quarter, Dell expects revenue of approximately $49 billion, representing 81% year-over-year growth. GAAP diluted EPS is projected at $6.10, up 168%, while non-GAAP diluted EPS is expected to reach $6.50, up 151%.
KEY QUOTES:
“IT environments have shifted from cost centers to value drivers that fuel growth and competitive advantage, and customers are investing accordingly. That’s clearest in our AI server business where we booked a record $60.9 billion in orders, recognized a record $16.4 billion in revenue and exited the quarter with a record $95 billion backlog. We’re seeing broader revenue growth as well, with traditional servers and networking up 122%, storage up 26% and our client solutions up 20% year over year. Our second quarter results underscore the compounding benefits of our competitive advantages, the breadth of our portfolio and the strength of our operating model.”
Jeff Clarke, Vice Chairman and Chief Operating Officer of Dell Technologies
“In our second quarter, we delivered record revenue of $47 billion, record EPS and a record $4.3 billion returned to shareholders. Our advantages reinforce one another, and throughout the quarter we used these strengths to drive growth, share gains, profitability and cash generation. With AI momentum accelerating and our opportunity expanding across the portfolio, we’re raising our full-year FY27 revenue outlook by $25 billion to $192 billion, up nearly 70% year over year.”
David Kennedy, Chief Financial Officer of Dell Technologies
