Dell Technologies shares surged approximately 9% in Wednesday pre-market trading, reaching $463.62 on the NYSE and recovering from a previous session drop. The movement followed the release of the company's financial results and an upgraded outlook for fiscal 2027, driven by robust demand for artificial intelligence hardware.
During the second quarter, Dell's profit reached $4.133 billion, marking a 255% increase from $1.164 billion during the same period a year earlier. Earnings per share rose to $6.34 from $1.70, while adjusted earnings per share came in at $7.04. Overall revenue for the quarter increased 57.7% year over year to $46.971 billion.
The company's Infrastructure Solutions Group reported revenue of $31.78 billion, representing an 89% annual increase. Within that division, the AI-Optimized server business saw revenue double to $16.401 billion. Traditional servers and networking grew 122%, storage increased by 26%, and the Client Solutions unit, which handles PCs and laptops, grew 20% to reach $15.03 billion.
Dell reported receiving about $60.9 billion in orders for its AI server unit during the quarter, converting $16.4 billion of that amount into recognized revenue. The business closed the period with a record $95 billion backlog. CFO David Kennedy attributed the quarterly performance to the company's competitive advantages in driving growth, profitability, and cash generation.
Looking ahead to the third quarter, Dell projected earnings per share of $6.10, an adjusted EPS of $6.50, and revenue of approximately $49.0 billion. For the full fiscal 2027, the company raised its earnings per share projection to $24.37 and adjusted EPS to $25.50. Full-year revenue guidance was increased to $192.0 billion, up from the prior estimate of $167 billion.
Additionally, Dell raised its full-year revenue expectation for AI-Optimized servers to $74 billion, up from $60.0 billion. The board of directors also declared a quarterly dividend of $0.63 per share, payable on October 30 to shareholders of record as of October 20.
