Dell Stock: Earnings, AI Server Demand and 2026 Outlook

Dell Technologies has reported another strong quarter, with artificial intelligence infrastructure continuing to be the main driver of growth.

The latest results give investors a closer look at how quickly demand for AI servers is expanding and how that demand is affecting Dell’s overall business.

Dell Reports Record Revenue

Dell reported quarterly revenue of about $47 billion, representing a 58% increase from the same period a year earlier. Adjusted earnings reached $7.04 per share, compared with Wall Street expectations of roughly $4.91.

The company’s infrastructure business was the biggest contributor to the growth. As enterprises and technology firms grew their AI computing power, demand for servers that could power artificial intelligence workloads persisted.

Dell’s AI-optimized server revenue reached approximately $16.4 billion, about twice the level recorded a year earlier.

AI Server Orders Continue to Grow

One of the most notable figures in Dell’s earnings report was its AI server order activity.

Dell recorded approximately $60.9 billion in AI-optimized server orders during the quarter. Its AI server backlog reached about $95 billion, highlighting the amount of infrastructure that remains to be delivered.

The figures reflect continued spending on data-center infrastructure as companies build computing capacity for generative AI and other artificial intelligence applications.

Dell is one of several major hardware companies benefiting from this investment. Its systems combine processors, networking equipment, storage and other components required for large-scale computing environments.

Dell’s strong AI-server results are also closely connected to Nvidia’s performance. For more context, read our Nvidia Earnings analysis.

Dell Raises Its Full-Year Revenue Forecast

Following the results, Dell increased its full-year revenue forecast substantially.

The company now expects fiscal 2027 revenue of approximately $192 billion, compared with its previous forecast of $167 billion. Dell also raised its adjusted earnings-per-share forecast from $17.90 to $25.50.

The company increased its expectations for AI-optimized server revenue as well. Dell now expects approximately $74 billion in AI-optimized server revenue for fiscal 2027, compared with its earlier estimate of $60 billion.

The higher forecast indicates that Dell expects strong AI infrastructure demand to continue into the next fiscal year.

Dell Stock Reaction

Dell shares moved higher following the earnings announcement as investors reacted to the stronger results and increased outlook.

The stock has already become closely associated with the AI infrastructure theme because of Dell’s growing role in supplying servers to data centers.

However, the share-price reaction is separate from the company’s operating results. Stock prices can also be affected by broader technology-sector conditions, valuation levels, interest rates and investor expectations.

What the Results Say About AI Spending

Dell’s latest numbers provide another indication that spending on AI infrastructure remains substantial.

The size of the company’s AI server orders and backlog suggests that organizations are continuing to invest in computing capacity rather than significantly reducing infrastructure spending.

The results also highlight the connection between companies such as Dell and Nvidia. Nvidia supplies many of the processors used in AI systems, while Dell integrates computing hardware and infrastructure into systems used by data centers and enterprise customers.

The continued growth of both businesses shows how the expansion of AI applications is affecting different parts of the technology supply chain. Dell’s latest results also add to the broader debate about whether AI spending is beginning to slow. Yahoo Finance recently, highlighting the continued strength of demand for AI infrastructure.

Dell’s Outlook for the Coming Quarters

Demand for AI infrastructure will be a key driver of Dell’s performance going forward. The company expects the revenue contribution of AI optimized servers to continue to grow; however this will be subject to availability of components, production capacity and customer deployment schedules.

In addition to AI servers, Dell’s storage, networking businesses as well as its traditional infrastructure businesses will be affected by the overall results.

The company will provide a bit more detail in its upcoming earnings reports about the growth in orders, revenue recognition, margins and whether the company’s forecast will be met.

What to Watch Next

The next few quarters will provide more information about whether the current pace of AI infrastructure spending can continue.

Investors and analysts will be watching Dell’s AI server revenue, backlog, profit margins, supply capacity and future guidance. The company’s traditional PC and enterprise businesses will also remain important parts of its financial performance.

For now, Dell’s latest earnings report shows that AI infrastructure remains a major source of growth for the company, with record revenue, a large AI server backlog and a significantly higher full-year forecast.