Dell raises AI server revenue forecast to $74B for fiscal 2027
The infrastructure giant now expects nearly $200 billion in total annual revenue as hyperscalers continue massive data center buildouts.
Dell Technologies has raised its revenue projections for AI-optimized servers to $74 billion for fiscal year 2027, marking the second time this year the company has increased its annual outlook. The upward revision reflects sustained enterprise spending on AI infrastructure as technology companies expand data center capacity.
The Round Rock, Texas-based manufacturer reported second-quarter revenue of $47 billion, surpassing analyst expectations of $44.92 billion, according to details first reported by Reuters. Adjusted earnings per share reached $7.04, well above the $4.91 consensus estimate. Dell's stock climbed 10% in after-hours trading following the announcement on September 1, 2026.
Why it matters
Dell's upgraded forecast signals that AI infrastructure spending remains robust despite broader economic uncertainties. The company's position as a primary supplier of servers equipped with Nvidia's advanced chips gives it direct exposure to the buildout of computing clusters used for training and deploying large language models. With S&P Global Ratings projecting AI infrastructure spending to exceed $1.3 trillion by 2027, Dell's results provide concrete evidence that hyperscale demand is translating into sustained revenue growth for the hardware supply chain.
Revised annual outlook
The company increased its full fiscal 2027 revenue forecast by $25 billion to $192 billion total. Dell also raised its adjusted earnings-per-share guidance to $25.50, up from a previous expectation of $17.90. The AI-optimized server segment alone now accounts for nearly 40% of the company's projected annual revenue, compared to the earlier $60 billion estimate.
Dell competes with Super Micro Computer to supply servers to AI cloud providers including Nscale and CoreWeave. These systems integrate Nvidia's latest GPU technology, which provides the computational power required for AI model training and inference workloads.
Strong quarterly performance
CFO David Kennedy attributed the record quarterly results to the company's competitive advantages in the AI server market. "Our advantages reinforce one another, and throughout the quarter we used these strengths to drive growth, share gains, profitability and cash generation," Kennedy stated.
For the third quarter, Dell projected revenue of $49 billion and adjusted earnings per share of $6.50. Both figures exceed Wall Street estimates of $41.42 billion and $4.48, respectively.
Market momentum
Dell's shares have more than tripled in value over the past year, reflecting investor confidence in the AI infrastructure buildout. The company's performance follows strong forecasts from Nvidia and Super Micro Computer in August, which reinforced expectations that AI-related capital expenditures will continue at elevated levels through 2027.
Reuters first reported these financial results and guidance updates.
This is an original analysis by the Omega editorial team. Source reporting: AI Watch.
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