Dell Technologies (DELL) Delivers Record Revenue and EPS on AI Server Momentum
Key Takeaways
- Dell Technologies (DELL) reported record revenue of $47.0 billion for its second quarter of fiscal 2027, up 58% year over year.
- Non-GAAP diluted earnings per share (EPS) reached a record $7.04, up 203% and well above the roughly $4.87–$4.97 analysts expected.
- The Infrastructure Solutions Group (ISG), which includes servers and storage, grew 89% to a record $31.8 billion, driven by surging demand for AI-optimized servers.
- Dell exited the quarter with a record $95 billion AI backlog after booking $60.9 billion in AI server orders during the quarter.
- The company raised its full-year fiscal 2027 revenue outlook by $25 billion to $192 billion and lifted its non-GAAP EPS guidance to $25.50.
- Dell returned a record $4.3 billion to shareholders through buybacks and dividends, and declared a $0.63 per-share quarterly dividend.
Why This Report Matters
Dell Technologies has become one of the stocks investors monitor most closely as a direct play on the AI infrastructure buildout. Its fiscal 2027 second quarter, which ended July 31, 2026, shows how well the company is turning strong demand for AI servers into profitable growth. After a strong first quarter that also beat expectations, this update provides a useful window into enterprise data center spending, component supply, and the staying power of AI-related capital expenditures. I was particularly interested in whether the record order book would support continued margin improvement and higher guidance.
The Quarter in Detail
Revenue came in at a record $47.0 billion, a 58% increase from $29.8 billion the prior year and ahead of the roughly $44.8 billion to $45.3 billion consensus range. GAAP diluted EPS reached a record $6.34, up 273%, while non-GAAP diluted EPS hit $7.04, up 203% and well above the $4.87–$4.97 range analysts had projected. Net income rose 255% to $4.13 billion.
Performance was solid across the board. ISG revenue jumped 89% to $31.8 billion, with AI-optimized servers at $16.4 billion (up 100%), traditional servers and networking at $10.5 billion (up 122%), and storage at $4.9 billion (up 26%). The Client Solutions Group, Dell’s PC business, grew 20% to $15.0 billion, including 22% growth in commercial revenue. Operating cash flow was $2.2 billion. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
How the Market Responded
The results strengthened the positive view of Dell’s AI positioning. Shares, which had eased in regular trading before the release, rose roughly 6% to 8% in after-hours trading as investors absorbed the beat and the raised full-year outlook. The reaction highlighted that Dell is not only expanding AI server revenue quickly but also improving profitability, with operating expenses holding at about 8% of revenue—among the lowest levels in the company’s history. The size of the EPS beat, supported by scale and a favorable product mix, drove much of the positive response, even as some investors remain aware of ongoing supply constraints.
Guidance and Areas Worth Watching
Dell enters the second half of fiscal 2027 with solid momentum, though expectations for the stock are already elevated. Management guided third-quarter revenue to about $49.0 billion, up roughly 80% year over year, and non-GAAP EPS of about $6.50. For the full year, the company raised its revenue target to $192 billion and its non-GAAP EPS outlook to $25.50, while increasing its full-year AI-optimized server revenue expectation to $74 billion.
A few factors stand out for continued monitoring. Supply availability remains a constraint, with management noting ongoing shortages of DRAM and NAND memory, CPUs, hard drives, and certain AI-related components. How effectively Dell navigates these limits will influence near-term growth. Gross margin trends will also be important, as AI server sales typically carry lower margins than traditional businesses. Finally, the PC recovery continues as a secondary factor, with Dell expecting CSG operating margins to moderate somewhat as it balances growth, share, and profitability.
Integrating AI Tools Into My Workflow
I often turn to Tickeron’s AI Screener when evaluating companies like this one. It lets me quickly filter for stocks showing similar technical patterns, fundamental strength, and momentum signals, which helps surface ideas and compare opportunities more efficiently than manual review alone. The tool has become a regular part of how I cross-check earnings-driven moves against broader market trends.
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Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
DELL sees MACD Histogram just turned negative
DELL saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on August 19, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 53 instances where the indicator turned negative. In of the 53 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DELL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
DELL broke above its upper Bollinger Band on August 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 53 cases where DELL's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on September 02, 2026. You may want to consider a long position or call options on DELL as a result. In of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
DELL moved above its 50-day moving average on September 02, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DELL advanced for three days, in of 316 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DELL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (7.597). P/E Ratio (28.633) is within average values for comparable stocks, (36.720). Projected Growth (PEG Ratio) (0.807) is also within normal values, averaging (1.501). Dividend Yield (0.005) settles around the average of (0.016) among similar stocks. P/S Ratio (2.162) is also within normal values, averaging (54.008).
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