Dell Technologies Set to Report Q2 FY27 Earnings Amid AI Server Demand Surge

Dell Technologies is scheduled to announce its fiscal second quarter 2027 results on September 1, 2026. The company has seen its AI-optimized server business become a central focus, with Q1 FY27 results indicating a record revenue of $43.8 billion, an 88% increase year-over-year. Notably, AI-optimized server revenue reached $16.1 billion, marking a staggering 757% growth compared to the same period last year.

Analysts anticipate Dell's Q2 revenue to fall between $44 billion and $45 billion, suggesting a year-over-year growth of approximately 50% at the midpoint. Consensus estimates are leaning towards the upper end of this range, with an expected adjusted earnings per share of around $4.91. The infrastructure solutions group (ISG) also reported $29 billion in revenue during Q1, reflecting a 181% surge.

During the last quarter, Dell's AI orders totaled $24.4 billion, contributing to an AI backlog that swelled to $51.3 billion, up from $43 billion previously. The company has expanded its AI customer base to over 5,000 clients, representing more than 50% growth in just six months. This demand is largely fueled by Nvidia's latest generation of accelerators, which are critical for AI training and inference workloads.

However, investors are cautious about potential supply chain issues, particularly regarding high-bandwidth memory components, which are essential for AI servers. Additionally, the cost structure of AI servers differs from traditional enterprise hardware, with higher component costs and intense competition for supply impacting margins. The upcoming earnings report will also provide updated guidance for the remainder of FY27, offering insights into whether Dell can maintain its current growth trajectory.