Dell Technologies reported record-breaking fiscal second-quarter results Tuesday, with AI server demand driving the company to book $60.9 billion in AI orders during the quarter — its highest quarterly total ever.
The company exited the quarter with a $95 billion AI server backlog, meaning the next several quarters of revenue are already largely committed. Total revenue rose 58% year-over-year to $46.97 billion, while server revenue alone doubled to $16.4 billion. Adjusted earnings per share came in at $2.48, beating the $2.32 consensus estimate.
Despite the blockbuster demand, free cash flow fell 47% to $986 million as Dell invested heavily in manufacturing capacity and inventory to fulfill the massive order book. The company raised its full-year revenue guidance by $25 billion to a new target of $192 billion and lifted the FY27 AI-optimized server revenue target to roughly $74 billion — tripling the prior year's figure.
The results underscore the scale of AI infrastructure buildout still underway. Dell has become the primary hardware supplier for large-scale AI training clusters, competing with Super Micro Computer and HP Enterprise. CEO Michael Dell noted that the $60.9 billion in orders came from a diverse set of customers spanning hyperscalers, sovereign cloud providers, and enterprises.
The $95 billion backlog is more than double Dell's total revenue from just two years ago, illustrating how quickly AI has transformed the company from a legacy PC and server maker into one of the most critical infrastructure providers in the AI ecosystem.
