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The higher target puts a concrete annual delivery marker on Dell’s AI infrastructure business. Its reported quarter establishes the starting point; future server sales must now substantiate the forecast.
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Dell’s AI-server momentum is broadening into a much larger infrastructure outlook: its Infrastructure Solutions Group generated $31.78 billion in fiscal Q2 revenue, while AI-optimized servers contributed $16.40 billion. The company now expects 200% annual growth in that business and raised fiscal 2027 revenue guidance to $192 billion, with adjusted EPS of $25.50.
Infrastructure Solutions Group revenue rose 89% year over year to $31.78 billion in fiscal Q2.
Traditional servers and networking grew 122% to $10.53 billion, reflecting AI-related demand for CPU capacity.
IREN’s $1.6 billion Dell hardware agreement includes Nvidia-powered servers but is not quarterly recognized revenue.
Dell lifted its full-year AI-optimized server sales target to $74 billion after fiscal second-quarter sales reached $16.40 billion. The company forecasts 200% growth for the year, sending its shares up 10% in extended trading after the earnings report and broader forecast update.
Dell exceeded Wall Street’s expectations in the fiscal second quarter. Revenue reached $46.97 billion, up about 58% from a year earlier and above the $44.92 billion LSEG consensus. Adjusted earnings were $7.04 a share, compared with the $4.92 consensus estimate.
Dell forecast fiscal third-quarter revenue of $49.0 billion and adjusted earnings of $6.50 a share, above LSEG consensus estimates of $41.42 billion and $4.49 a share. It also raised its fiscal 2027 outlook to $192 billion in revenue and $25.50 in adjusted earnings per share.
The AI-server target is itself more aggressive than Dell’s projection six months ago, when it expected 103% growth. The new 200% figure is company guidance, rather than sales already recorded.
Dell’s Infrastructure Solutions Group, its data-center hardware business, generated $31.78 billion in second-quarter revenue, up 89% year over year. AI-optimized servers accounted for $16.40 billion of that total, exceeding the $16.07 billion StreetAccount consensus.
IREN agreed to buy $1.6 billion in Dell hardware, including servers containing Nvidia chips. That agreement is a customer commitment, distinct from revenue Dell recognized during the quarter.
Dell also said it received a $9.7 billion U.S. military software contract during the quarter. The Department of War awarded the five-year agreement to Dell Federal Systems in May; it covers Microsoft 365, advanced cloud subscriptions and on-premises software licensing rather than AI-server sales. Dell’s next reported results will show whether the AI-server target translates into additional delivered revenue.
Editorial analysis
Dell gives the AI infrastructure cycle a systems-maker checkpoint that is distinct from chipmaker results. The company has recognized $16.40 billion in quarterly AI-optimized server revenue, while its $74 billion annual figure remains a target and IREN’s $1.6 billion deal remains a customer agreement. The next useful test is not the size of the target itself, but whether Dell’s subsequent reported AI-server sales keep pace with it. Its third-quarter revenue and earnings guidance creates the nearest companywide checkpoint.
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