Dell Beats Quarterly Views on Record AI Server Demand, Boosts Full-Year Outlook

05:07 PM EDT, 09/01/2026 (MT Newswires) -- Dell Technologies' (DELL) fiscal second-quarter results beat Wall Street's estimates, driven by record artificial intelligence server demand, while the company lifted the full-year outlook. Adjusted earnings rose to $7.04 a share for the quarter ended July 31 from $2.32 a year earlier, well above the FactSet-polled consensus of $4.91. Revenue soared 58% year-on-year to $46.97 billion, higher than the Street's view of $44.89 billion. Revenue in the infrastructure solutions group climbed 89% to $31.78 billion as AI-optimized server sales doubled to $16.4 billion, Dell said. Traditional server and networking revenue soared 122%. The company saw record AI server demand, generating $60.9 billion in orders, Chief Operating Officer Jeff Clarke said in a statement. Dell's shares were up 8.2% in after-hours trade. The stock surged 238% so far this year through Tuesday's close. Sales for the client solutions group, which includes personal computers, climbed 20% year-on-year to $15.03 billion in the fiscal second quarter. Morgan Stanley expected Dell to post "strong" fiscal second-quarter results and lift full-year guidance amid momentum in AI servers and traditional infrastructure, according to a note last week. Dell now expects full-year non-GAAP EPS of $25.50, plus or minus $0.25, compared with its previous guidance of $17.90. Revenue is now pegged at $192 billion, plus or minus $2 billion, up from the prior $165 billion to $169 billion range. The consensus is for full-year adjusted EPS of $18.99 and sales of $174.05 billion. For the current quarter, Dell forecasts adjusted EPS of $6.50, plus or minus $0.10, on revenue of $49 billion, plus or minus $500 million. Analysts are looking for $4.46 and $41.36 billion, respectively. BofA Securities had also projected Dell to raise its fiscal 2027 guidance, saying in a note on Monday that the upside is limited by component availability and customer data center readiness. "For AI servers, we see another constructive setup given the scale of backlog, continued order activity, and visibility into multi-quarter deployments," the brokerage wrote. In July, IBM (IBM) reported second-quarter results that fell short of analysts' estimates and reduced full-year constant-currency revenue growth expectations. AI server maker Hewlett Packard Enterprise (HPE) is scheduled to report its fiscal third-quarter earnings on Wednesday.