Dell reported an exceptional quarter with record revenue and AI server orders, and raised full-year guidance significantly. The call highlighted broad-based strength across AI servers, traditional servers, and storage, with a strong enterprise AI adoption trend. Management signaled continued major growth and AI-related tailwinds extending beyond just AI-optimized infrastructure. Record Q2 revenue of $47B (+58%) and EPS of $7.04 (+203%), with strong beat-and-raise dynamics.
Dell reported an exceptional quarter with record revenue and AI server orders, and raised full-year guidance significantly. The call highlighted broad-based strength across AI servers, traditional servers, and storage, with a strong enterprise AI adoption trend. Management signaled continued major growth and AI-related tailwinds extending beyond just AI-optimized infrastructure. Record Q2 revenue of $47B (+58%) and EPS of $7.04 (+203%), with strong beat-and-raise dynamics.
Management reported record AI server orders of $60.9B and backlog of $95B, with demand broadening across Neoclouds, Sovereigns and Enterprise customers. They highlighted differentiation in engineering, deployment, and support, and noted they were first to ship rack systems on…
Management reported record AI server orders of $60.9B and backlog of $95B, with demand broadening across Neoclouds, Sovereigns and Enterprise customers. They highlighted differentiation in engineering, deployment, and support, and noted they were first to ship rack systems on…
Management highlighted record AI orders, a growing pipeline that remains multiples of backlog, and a record $95B backlog. They also noted traditional server revenue up 122% with demand exceeding supply, and storage demand strong with Dell IP storage growing above market for six…
Guidance · revenue to $49B
Management reported record AI server orders of $60.9B and backlog of $95B, with demand broadening across Neoclouds, Sovereigns and Enterprise customers. They highlighted differentiation in engineering, deployment, and support, and noted they were first to ship rack systems on the NVIDIA Vera Rubin platform. They expect AI server revenue to triple to $74B for the full year.
Management highlighted record AI orders, a growing pipeline that remains multiples of backlog, and a record $95B backlog. They also noted traditional server revenue up 122% with demand exceeding supply, and storage demand strong with Dell IP storage growing above market for six consecutive quarters. They expect second half momentum to continue with stronger results.
Management did not provide explicit capital expenditure guidance for their own operations, but they highlighted significant investments in modernization and supply chain, with operating expense rate expected to be approximately 8% of revenue, the lowest in company history. They also noted the need for customers to add 200 gigawatts of power for AI data centers by 2030.
Management's tone was highly positive, emphasizing record results, accelerating demand, and raised guidance, with a strong focus on execution and future growth.
If supply constraints persist, Dell may be unable to fully satisfy demand, potentially limiting revenue growth and market share gains.
“Traditional server or networking revenue was $10.5 billion, up 122%. as demand continued to outpace supply.”
“Demand was even greater than the results that we published there. We are supply constrained.”
“3,300 of them have happened in the last three quarters. It took us eight quarters to get to the first 3,200. That acceleration is enterprise.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| EPS | FY2027 Q3 | $6.50 | $6.50 | RAISED |
| EPS | FY2027 | $25.50 | $25.50 | RAISED |
| Revenue | FY2027 Q3 | $49B | $49B | RAISED |
| Revenue | FY2027 | $192B | $192B | RAISED |
| RevenueAI | FY2027 Q3 | $19B | $19B | RAISED |
| RevenueAI | FY2027 | $74B | $74B | RAISED |
| 제시 시점 | 지표 | 목표 기간 | 가이던스 | 실제 | 결과 |
|---|---|---|---|---|---|
| FY2027 Q1 | EPS | FY2027 Q2 | $4.70–$4.90 | $7.04 | Met / beat |
| FY2027 Q1 | Revenue | FY2027 Q2 | $44B–$45B | $46.971B | Met / beat |
| FY2026 Q4 | EPS | FY2027 Q1 | $2.80–$3.00 | $4.86 | Met / beat |
| FY2026 Q4 | Revenue | FY2027 Q1 | $34.7B–$35.7B | $43.842B | Met / beat |
| FY2026 Q3 | EPS | FY2026 Q4 | $3.40–$3.60 | $3.89 | Met / beat |
| FY2026 Q3 | Revenue | FY2026 Q4 | $31B–$32B | $33.379B | Met / beat |
Dell is the first to ship racks on NVIDIA's next-gen Vera Rubin platform, signaling strong early alignment and engineering capability with NVIDIA's roadmap.
“We demonstrated those capabilities again by becoming the first to ship rack systems engineered on the NVIDIA Vera Rubin platform.”
… and deployment expertise, with some engagements requiring upwards of 50 unique designs as customers optimize for workload performance, power, cooling, and the data center environment. This complexity plays to our strengths. Our engineering capabilities, broad portfolio, global supply chain, and ability to deploy and support infrastructure at scale globally differentiate us, enable customers to move from design to production more quickly. We demonstrated those capabilities again by becoming the first to ship rack systems engineered on the NVIDIA Vera Rubin platform. The AI market is evolving rapidly, and we are focused on expanding our platforms and capabilities solving increasingly complex customer challenges and innovating across the infrastructure stack. With accelerating demand and a growing pipeline and differentiated capabilities, we are well positioned to capture the opportunity ahead. Moving to traditional servers, revenue was up 122% as demand remains exceptionally strong supported by multiple vectors of growth. First, a majority of our growth is coming from existing customers. as they continue to refresh and modernize their data centers to support traditional …
Supply remains constrained for traditional servers, with demand outstripping supply even as revenue grew 122%. — The supply constraint is industry-wide; competitors face similar allocation challenges, but Dell's scale is winning share, pressuring rivals.
Thanks very much. Congrats again on the fantastic numbers. A few more details on the huge strength you're seeing in both traditional and AI servers. First of all, for traditional servers, This has been traditionally almost all enterprise customers, and I believe you're lumping in the CPU racks, the agentic AI servers. that are CPU racks in there, I believe. Is this traditional server category still almost all enterprise, or are you seeing a portion of that from, say, NeoClouds or TS3 CSPs? And then similarly for the AI server customer mix, both revenue and orders, I know majority in the past has been near clouds or tier two CSPs. Is that still the same? I wondered if you could give us any…
You bet. Mark, traditional server, the 122% growth, it's primarily our historical enterprise customers. I'd stress demand outstrips supply. Demand was even greater than the results that we published there. We are supply constrained. but demand is from our traditional enterprise customers. That's where the vast majority of the workloads are. That's where the modernization is occurring. That's where the aged install base is. That's where the heightened awareness around security and resiliency has been driving demand. I introduced last quarter that we are beginning to see an AI servers. And when I talked about that and it'd be the same that happened this past quarter, that there are neoclouds buying that. Some of our high frequency trader customers are buying those types of servers as well as very advanced in their AI deployments, our largest and most sophisticated enterprise customers. So vast majority of that 122% growth are traditional customers across all segments, all geos. AI servers are beginning to show up with that set of customers, which is exciting to see that grew quarter over quarter. It grew across Neoclouds. It grew across our HFT customers as well as our enterprise customers. So that's exciting to see. And then the mix inside our traditional AI business is exciting. Something that we've talked about and I think we mentioned in our remarks, we now have more than 6,500 customers buying Dell AI Factory. 3,300 of them have happened in the last three quarters. It took us eight quarters to get to the first 3,200. That acceleration is enterprise. Enterprise customers grew quarter over quarter, year over year. Repeat buyers grew quarter over quarter and year over year. Enterprise revenue grew quarter over quarter and year over year. And the pipeline of enterprise customers grew sequentially as well. So we are seeing more enterprise customers The mix didn't necessarily change because we are still winning on the sovereign side as well as the large neocloud side. But the momentum with enterprise, that's measured by number of customers. The number of customers that are buying repeatedly is all up and the indicators are strong. And they tend to buy more storage and they tend to buy more networking when they engage with us, a more complete solution. I hope that helped.
AI server enterprise customer count is accelerating sharply, with 3,300 new customers in the last three quarters vs. 3,200 in the prior eight quarters, indicating AI demand is broadening beyond neoclouds. — This broadening demand signals an increasing need for enterprise networking to support AI workloads, benefiting networking suppliers.
Thanks very much. Congrats again on the fantastic numbers. A few more details on the huge strength you're seeing in both traditional and AI servers. First of all, for traditional servers, This has been traditionally almost all enterprise customers, and I believe you're lumping in the CPU racks, the agentic AI servers. that are CPU racks in there, I believe. Is this traditional server category still almost all enterprise, or are you seeing a portion of that from, say, NeoClouds or TS3 CSPs? And then similarly for the AI server customer mix, both revenue and orders, I know majority in the past has been near clouds or tier two CSPs. Is that still the same? I wondered if you could give us any…
You bet. Mark, traditional server, the 122% growth, it's primarily our historical enterprise customers. I'd stress demand outstrips supply. Demand was even greater than the results that we published there. We are supply constrained. but demand is from our traditional enterprise customers. That's where the vast majority of the workloads are. That's where the modernization is occurring. That's where the aged install base is. That's where the heightened awareness around security and resiliency has been driving demand. I introduced last quarter that we are beginning to see an AI servers. And when I talked about that and it'd be the same that happened this past quarter, that there are neoclouds buying that. Some of our high frequency trader customers are buying those types of servers as well as very advanced in their AI deployments, our largest and most sophisticated enterprise customers. So vast majority of that 122% growth are traditional customers across all segments, all geos. AI servers are beginning to show up with that set of customers, which is exciting to see that grew quarter over quarter. It grew across Neoclouds. It grew across our HFT customers as well as our enterprise customers. So that's exciting to see. And then the mix inside our traditional AI business is exciting. Something that we've talked about and I think we mentioned in our remarks, we now have more than 6,500 customers buying Dell AI Factory. 3,300 of them have happened in the last three quarters. It took us eight quarters to get to the first 3,200. That acceleration is enterprise. Enterprise customers grew quarter over quarter, year over year. Repeat buyers grew quarter over quarter and year over year. Enterprise revenue grew quarter over quarter and year over year. And the pipeline of enterprise customers grew sequentially as well. So we are seeing more enterprise customers The mix didn't necessarily change because we are still winning on the sovereign side as well as the large neocloud side. But the momentum with enterprise, that's measured by number of customers. The number of customers that are buying repeatedly is all up and the indicators are strong. And they tend to buy more storage and they tend to buy more networking when they engage with us, a more complete solution. I hope that helped.