Dell Technologies shares climbed 9% in extended trading after the company reported stronger-than-expected fiscal second-quarter results and raised its outlook, driven by continued demand for artificial intelligence infrastructure.
The computer manufacturer exceeded analyst expectations across both earnings and revenue, highlighting the growing importance of AI-optimized servers and data center investments.
Dell Beats Revenue and Earnings Expectations
According to LSEG consensus estimates, Dell reported:
- Earnings per share: $7.04 adjusted vs. $4.92 expected
- Revenue: $46.97 billion vs. $44.92 billion expected
Revenue increased approximately 58% year over year during the fiscal second quarter, which ended July 31. Dell reported net income of $4.13 billion, or $6.34 per share, compared with $1.16 billion, or $1.70 per share, during the same period last year.
For the upcoming fiscal third quarter, Dell expects adjusted earnings of $6.50 per share on revenue of $49 billion, representing approximately 81% year-over-year growth. Analysts had projected earnings of $4.49 per share and revenue of $41.42 billion.
Dell Raises Full-Year Forecast
Dell increased its full-year guidance, now expecting adjusted earnings of $25.50 per share and revenue of $192 billion.
The updated forecast is significantly above analyst expectations of $18.92 per share in earnings and $172.67 billion in revenue.
Dell Chief Operating Officer Jeff Clarke said rising input costs and resulting price increases contributed to the company’s stronger revenue outlook.
The company’s stock has gained significantly in 2026, rising 236% year to date as investors continue to view Dell as a key beneficiary of the artificial intelligence infrastructure boom.
AI Infrastructure Drives Dell’s Growth
Dell’s Infrastructure Solutions Group, which focuses on data center hardware, reported $31.78 billion in fiscal second-quarter revenue, an increase of 89% year over year.
The segment exceeded analyst expectations, with Dell generating $16.40 billion from AI-optimized servers. Revenue from traditional servers and networking equipment also increased sharply, reaching $10.53 billion, up 122% year over year.
Clarke said demand is increasing from customers requiring significant computing power to support AI applications and AI agent workflows.
“These workloads are creating incremental demand for traditional servers,” Clarke said during the company’s earnings call.
AI Server Sales Expected to Reach New Highs
Dell now expects to generate $74 billion in AI-optimized server sales during the fiscal year, representing 200% growth. This is a significant increase from the company’s previous forecast of 103% growth issued just six months earlier.
The company’s AI momentum has been supported by major infrastructure deals, including a $9.7 billion contract to provide software for the U.S. military and a $1.6 billion hardware agreement with AI cloud infrastructure provider Iren involving Dell servers powered by Nvidia chips.
PC Business Shows Moderate Growth
Dell’s Client Solutions Group, which includes consumer and commercial PCs and accessories, generated $15.03 billion in revenue during the quarter.
The division grew 20% year over year but slightly missed analyst expectations of $15.08 billion.
Clarke said Dell adjusted its focus toward infrastructure opportunities after identifying signs of a slowdown in the PC market during the second half of the year.