Key facts
- Dell Technologies raised its annual revenue and profit forecasts for the second time this year.
- The company projects fiscal 2027 AI server revenue to reach $74 billion.
- Dell's annual revenue outlook was increased to $192 billion.
- Second-quarter revenue hit a record $47 billion, surpassing analyst estimates.
- Third-quarter revenue is projected at $49 billion, with adjusted EPS of $6.50.
Dell Technologies' shares climbed nearly 10% in premarket trading as strong demand for its AI-optimized servers powered an increase in its annual revenue and profit forecasts. The company raised its annual revenue outlook to $192 billion from $167 billion and its adjusted earnings per share target to $25.50 from $17.90. Dell's second-quarter revenue jumped 58% to a record $47 billion, surpassing Wall Street estimates of $44.92 billion. The company now projects fiscal 2027 AI server revenue to reach $74 billion. Dell's servers, equipped with Nvidia's chips, are sought by clients like AI cloud providers Nscale and CoreWeave. Analysts at J.P.Morgan noted Dell's record $60 billion of orders and $95 billion backlog in the quarter. Shares of other AI server makers, including Super Micro and Hewlett Packard Enterprise, also saw gains.