Dell Posts Record $47B Revenue, AI Backlog Hits $95B, Shares Jump Near 10%

Dell Technologies posted record fiscal second quarter revenue of $46.97 billion, up 58% year over year, as AI infrastructure demand outran every prior quarter in the company's history . AI server orders reached a record $60.9 billion and pushed the AI backlog to $95 billion, with $16.4 billion of AI server revenue recognized in the quarter . Non-GAAP diluted EPS came in at $7.04, up 203% and well ahead of the roughly $4.87 analysts had modeled, while GAAP diluted EPS was $6.34 .

The guidance raise is what resets the model. Management lifted full year fiscal 2027 revenue guidance to $192.0 billion, about $25 billion above the prior $167 billion target and roughly 69% growth, and took non-GAAP EPS guidance to $25.50 . AI server revenue alone is now guided to $74.0 billion for the year. Third quarter guidance calls for $49.0 billion of revenue and $6.50 of non-GAAP EPS.

Margin is the answer to the standing bear case that AI servers are low quality revenue. Gross margin came in at 20.9%, up from 18.3% a year earlier, which suggests DELL is booking AI systems without the dilution investors had feared . Shares rose about 6% in the session immediately after the release and traded as much as 15.8% higher the next day before paring the move .

Three things decide whether this holds. Whether the $95 billion backlog converts on schedule given component supply, whether gross margin stays near 20.9% as the AI mix grows toward the $74.0 billion revenue target, and whether order intake stays anywhere near the $60.9 billion quarterly pace. Guidance of this size leaves little room for a conversion delay, and the scale of the share move has already put a high bar under the next report.

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