Dell Shares Rise 10% Premarket After AI Server Demand Supports Guidance Increase

Dell Technologies (NYSE:DELL) shares gained about 10% in premarket trading on Wednesday after the company reported fiscal second-quarter 2027 adjusted earnings and revenue above analyst estimates and raised its full-year guidance.

As of 04:12 ET, Dell shares were up approximately 10%.

The company reported adjusted earnings of $7.04 per share on revenue of $46.97 billion for the quarter. Analysts had expected adjusted earnings of $4.87 per share and revenue of $44.84 billion.

Dell has expanded its presence in artificial intelligence infrastructure through partnerships with chipmakers including Nvidia and the production of rack-scale servers and related infrastructure used for AI workloads.

AI Server Orders Reach $60.9 Billion

Dell Chief Operating Officer Jeff Clarke said the company’s AI server business recorded $60.9 billion in orders during the quarter, which he described as an all-time high.

The business generated $16.4 billion in revenue and ended the quarter with a backlog of $95 billion, according to Clarke.

Dell’s Infrastructure Solutions Group, which includes the company’s AI server operations, reported quarterly revenue of $31.78 billion, an increase of 89% year over year.

Revenue from the Client Solutions Group, which includes personal computers, laptops and other client hardware, increased 20% to $15.03 billion.

ISG revenue was therefore more than twice the level generated by CSG during the quarter.

Dell Raises Fiscal 2027 Revenue and Earnings Guidance

For the fiscal third quarter of 2027, Dell expects adjusted earnings of $6.50 per share on revenue of $49 billion. The supplied analyst revenue estimate was $41.91 billion.

Dell also increased its full-year fiscal 2027 outlook. The company now expects adjusted earnings of $25.50 per share and revenue of $192 billion, compared with its previous guidance of $17.90 per share and $167 billion in revenue.

The analyst consensus estimate for full-year revenue was $173.8 billion.

The forecasts represent company guidance and remain subject to future business and market conditions.

Raymond James Raises Dell Price Target

Raymond James analyst Simon Leopold reiterated an Outperform rating on Dell following the results and increased the firm’s price target to $617 from $500.

Leopold cited “a solid F2Q27 beat and a significantly higher F3Q27 and FY27 outlook.”

“Although pricing and pull-forward orders are likely factors to some degree, the revised outlook implies AI is pulling through demand across traditional compute and storage, and the margin expansion this quarter also demonstrates Dell’s ability to execute despite continued supply constraints,” he wrote.

The comments and price target represent Raymond James’ assessment of Dell and are not established future outcomes.

Dell stock price