Dell Reports Record Results: AI Momentum Remains Robust

Dell Technologies DELL delivered a strong report, with AI infrastructure once again reflecting the biggest highlight. Revenue climbed 58% year over year to a record $47.0 billion, and, given AI momentum, it raised its FY27 revenue guidance by $25 billion to $192 billion, reflecting nearly 70% YoY growth compared to FY26.

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Adjusted EPS of $7.04 similarly reflected huge growth, up more than 200% from the same period last year and crushing the Zacks Consensus EPS estimate by 40%.

Infrastructure Solutions Group results were robust, with total segment sales climbing 89% YoY to $31.8 billion. Breaking down the segment further, AI-Optimized Servers revenue, Traditional Servers and Networking revenue, and Storage revenue all reflected records, with the segment’s operating income similarly climbing by a triple-digit 225% YoY to a record $4.8 billion.

Importantly, the demand picture remains red-hot for its AI Server business, with Dell booking a record $60.9 billion of AI server orders during the quarter and exiting with a $95 billion backlog. The backlog and record bookings provide strong top line visibility, undoubtedly what AI-focused investors wanted to see.  

Keep in mind that Dell Technologies was already a Zacks Rank #1 (Strong Buy) heading into the release, with its near-term EPS revisions remaining on an upward trajectory in recent months. The earnings revisions picture will shift more bullishly in the coming days to reflect its raised FY27 EPS guidance, providing a solid near-term momentum setup.

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Bottom Line

The quarter strengthened the AI growth story for Dell Technologies DELL, underpinned by accelerating demand and strong backlog visibility. The stock remains an excellent option for investors seeking AI-related exposure, with recent results and a favorable Zacks Rank #1 (Strong Buy) overall providing a solid backdrop.

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