Dell Technologies reported record revenue of $47.0 billion for its fiscal second quarter after the market closed Tuesday, Sept. 1, 2026, up 58% from a year earlier and well above Wall Street’s forecast of roughly $44.8 billion. The company also raised its full-year revenue and profit guidance as it reported a record $95 billion backlog of unfilled orders for AI-optimized servers. Dell shares had fallen as much as 6.8% during Tuesday’s regular session, then surged as much as 9%-10% in after-hours trading; they were up roughly 8% in early trading Wednesday, Sept. 2.
Key facts
- Revenue: $47.0 billion, up 58% year over year — above Wall Street’s forecast of about $44.8 billion.
- Fiscal year: Dell’s fiscal year runs on a different schedule than the calendar year, so this is Dell’s second fiscal quarter, not the calendar second quarter.
- Non-GAAP (adjusted) earnings per share: $7.04, up 203% year over year.
- GAAP (Generally Accepted Accounting Principles) diluted earnings per share: $6.34, up 273% year over year.
- AI server backlog: a record $95 billion in unfilled orders.
- Full-year revenue guidance: raised to about $192.0 billion.
- Shareholder returns: $4.3 billion in buybacks and dividends this quarter.
Adjusted earnings vs. GAAP earnings
Most of the day’s headlines about Dell “beating estimates” referred to its adjusted earnings per share — a measure, known as non-GAAP, that excludes certain one-time costs. Under standard GAAP accounting rules, which include those costs, the comparable number is lower.
- Non-GAAP (adjusted) EPS: $7.04 a share, up 203% from a year earlier — above analyst estimates reported at roughly $4.87 to $4.95 a share.
- GAAP (diluted) EPS: $6.34 a share, up 273% year over year.
AI servers are driving the growth
The jump was powered by Dell’s business selling the servers companies use to run artificial-intelligence software. Dell recognized $16.4 billion in AI-optimized server revenue during the quarter — roughly double what it booked a year earlier.
- AI server revenue: $16.4 billion, roughly double a year earlier.
- New AI server orders: a record $60.9 billion.
- AI server backlog: a record $95 billion in orders still waiting to be filled.
- Customer base: more than 6,500 customers buying AI servers.
Growth wasn’t limited to AI hardware. Dell’s traditional server-and-networking business, which sells computing equipment for tasks other than AI, generated $10.53 billion in revenue, up 122% year over year. Storage revenue was $4.85 billion, up 26%, and the company’s personal-computer business, client solutions, grew 20%.
Full-year outlook raised
Dell raised its guidance for the full 2027 fiscal year.
- Revenue guidance: raised to about $192.0 billion, roughly $25 billion above the previous outlook.
- Adjusted (non-GAAP) EPS guidance: raised to $25.50, up from a prior outlook of about $17.90.
- GAAP EPS guidance: raised to $24.37.
- Shareholder returns: Dell returned a record $4.3 billion to shareholders during the quarter through stock buybacks and dividends combined.
How the stock moved
- Tuesday’s regular session: Dell shares fell as much as 6.8% during the session ahead of the earnings report, which was released after the market closed. They closed around $425, down from Monday’s close of $456.01.
- Tuesday, after-hours: Once the results came out, shares surged as much as 9% to 10%, depending on when the peak was measured.
- Wednesday, Sept. 2, early trading: Shares were up roughly 8%, though it wasn’t immediately clear whether that gain would hold through the full session.
The move followed a very large 2026 rally: Dell shares had more than tripled since the start of the year, according to one media report. Some Wall Street analysts raised their price targets on the stock after Tuesday’s report, citing continued AI-driven demand, while other analysts have cautioned that the stock’s run may be nearing a ceiling, with views differing on how much further upside is likely.
What’s driving the caution
Some risks are worth watching even as the backlog itself is viewed as a sign of strength:
- Lower margins: AI servers carry lower profit margins than some of Dell’s other products.
- Supply constraints: Component shortages could slow how quickly the backlog converts into booked revenue.
- Cash flow pressure: Dell’s cash flow from operations was $2.2 billion for the quarter, and cash tied up funding that growth could weigh on free cash flow in the near term.