Dell (DELL) Fiscal Q2 2027 Earnings Call: AI Backlog Hits $95 Billion, Outlook Raised

Key Takeaways

• Dell Technologies reported fiscal Q2 2027 revenue of $47 billion, up 58% year over year, while diluted non-GAAP EPS rose 203% to a record $7.04.
• Infrastructure Solutions Group (ISG) revenue increased 89% to $31.8 billion. ISG operating income reached $4.8 billion, with operating margin expanding 620 basis points to 15%.
• AI server orders reached a record $60.9 billion, AI server revenue was $16.4 billion, and ending backlog rose to $95 billion. Dell booked $131.7 billion of AI orders over the past 12 months.
• Traditional server and networking revenue grew 122% to $10.5 billion, while storage revenue increased 26% to $4.9 billion. Management attributed demand to data-center modernization, AI-related CPU workloads, security requirements and market-share gains.
• Dell raised its full-year revenue guidance by $25 billion to a midpoint of $192 billion. It now expects diluted non-GAAP EPS of $25.50 and AI server revenue of $74 billion.
• The company returned a record $4.3 billion to shareholders during the quarter through share repurchases and dividends, supported by $8.1 billion of adjusted free cash flow.

Core Financial Results