Aug 28, 08:09 PM

Dell Beats Estimates, Raises Outlook on Robust AI Server Sales

Dell Technologies reported fiscal second-quarter 2026 revenue of $29.78 billion, a 19% year-on-year increase and ahead of analyst estimates. Adjusted earnings per share reached $2.32, also topping expectations, while GAAP operating income rose 27% to $1.8 billion. Cash flow from operations more than doubled to $2.5 billion, supporting $1.3 billion returned to shareholders through buybacks and dividends. Demand for artificial-intelligence infrastructure continued to reshape the business. Revenue in the Infrastructure Solutions Group jumped 44% to a record $16.8 billion, driven by a 69% surge in Servers and Networking sales to $12.9 billion. Dell said it shipped $10 billion of AI servers in the first half of the year and ended the quarter with an AI backlog of $11.7 billion. Management lifted its full-year AI server shipment target to $20 billion, up from a prior view of more than $15 billion. Looking ahead, Dell forecast third-quarter revenue of $26.5 billion to $27.5 billion and adjusted EPS of $2.35 to $2.55, the midpoint of which trails consensus profit estimates but exceeds sales expectations. For the full fiscal year, the company now projects revenue of $105 billion to $109 billion and non-GAAP earnings of about $9.55 per share. Shares edged higher in after-hours trading following the results.

#Dell Technologies #GAAP #Infrastructure Solutions Group #Servers #Networking #Dell #Shares

Written with ChatGPT .

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