Dell Technologies reported a record $60.9 billion in AI orders during its second fiscal quarter that ended July 31, marking the highest quarterly tally in the company's history. The tech giant also disclosed an AI backlog reaching $95 billion, according to an announcement made Tuesday. The results prompted Dell to lift its full-year fiscal 2027 revenue forecast by $25 billion to $192 billion, representing nearly 70 percent year-over-year growth.
The company posted AI-optimized server sales of $16.4 billion, doubling from $8.2 billion in the same quarter last year. Over the past 12 months, Dell has logged $131.7 billion in AI orders total. The firm increased its AI-optimized server revenue guidance for the fiscal year to $74 billion from $60 billion. Dell also raised its non-GAAP fiscal 2027 earnings per share forecast to $25, up from $17.90. Overall second-quarter revenue hit a record $47 billion, climbing 58 percent from $29.77 billion a year earlier and surpassing the Zacks consensus estimate of $45.34 billion. Non-GAAP diluted earnings per share reached $7.04, up 203 percent from $2.32 in the prior-year quarter and well above analyst expectations of $4.95 per share. Dell shares jumped $29.20, or 7 percent, in after-hours trading to $453.99.
"Our AI server momentum continues to accelerate," said Dell Chief Operating Officer Jeff Clarke in a conference call with analysts. "We booked $60.9 billion in AI orders this quarter, the most in our history." Clarke noted that Dell's AI sales pipeline "continued to grow sequentially and remains multiples" of the $95 billion backlog. The company's AI customer count now exceeds 6,500, with demand "broadening across neoclouds, sovereign and enterprise customers," according to Clarke. The executive said Dell's traditional server and networking business gained more than 10 share points over the past two quarters, with record quarterly revenue of $10.5 billion—up from $4.73 billion a year earlier—while storage revenue climbed to $4.9 billion from $3.85 billion.
Clarke attributed the surge to market complexity that plays to Dell's strengths, including engineering capabilities, a broad portfolio, global supply chain, and the ability to deploy and support infrastructure at scale globally. These factors are helping customers transition from AI design to production more quickly, he explained. The executive said a growing number of enterprise clients are adding CPU capacity to handle AI and agentic workloads, creating additional demand for traditional servers. Clarke added that customers are also preparing, managing, and moving increasingly large volumes of data for AI applications, driving incremental storage purchases. He noted that with most of Dell's installed base still running 14th-generation servers or older—compared with the current 17th generation—a significant and durable refresh opportunity lies ahead. Clarke said customers no longer view IT environments as cost centers but as value drivers that enable growth, productivity, and competitive advantage, leading them to expand and reallocate budgets to support continued IT investments.
Dell's Client Solutions Group device business posted 20 percent year-over-year growth to $15 billion, the fastest rate in five years. Clarke said demand for Dell solutions is exceeding available supply as customers enter a new era of infrastructure modernization for both AI and non-AI workloads. "AI is an important catalyst but the opportunity extends well beyond AI optimized infrastructure," he stated. The company's world-class supply chain and ability to serve customers across their IT environments are helping it meet more needs and capture market share, Clarke added. The enterprise computing giant's expanding partner ecosystem is positioning it to capitalize on sustained momentum, as customers increasingly prioritize deployment speed and operational scale in their infrastructure decisions.