Dell Technologies (DELL) is scheduled to report second-quarter fiscal 2027 results on September 1. The stock has risen 272% year to date, supported by strong demand for AI servers and data center infrastructure.

Dell Technologies Inc., DELL

Dell guided for second-quarter revenue of $44 billion to $45 billion, which would represent roughly 50% year-over-year growth at the midpoint. That level of revenue would have seemed unlikely not long ago, and it helps explain why investor attention is centered on whether the company can keep converting its AI demand into shipments.

The Infrastructure Solutions Group (ISG) is expected to drive results again. Demand for AI servers is coming from enterprises, neocloud providers, and sovereign customers, broadening the customer base beyond any single segment. That mix matters because Dell’s AI-related growth is not being tied to one type of buyer or one end market.

In the first quarter, Dell booked $24.4 billion in AI orders and recognized $16.1 billion in AI server revenue. The company ended the quarter with a record $51.3 billion AI backlog, and its pipeline was several times larger than that figure.

For the second quarter, Dell expects about $15.5 billion in AI server revenue, which would help drive roughly 75% ISG revenue growth. Customer demand continues to outpace supply, suggesting the backlog could increase further.

Earnings Outlook

Dell expects second-quarter EPS of about $4.80, which would mark more than 100% year-over-year growth. Analysts are even more optimistic, forecasting EPS growth of more than 120%.

Dell has beaten Wall Street’s EPS estimates in each of the past four quarters, including a 66% beat last quarter. That track record is an important factor in setting expectations.

Traditional server demand is also holding up as large enterprises refresh computing environments and expand capacity. AI inference is also adding incremental demand on conventional server platforms, widening the opportunity.

Storage remains another important part of the ISG business. It contributes meaningfully to segment profitability, not just revenue, which makes the broader infrastructure mix relevant alongside the AI server numbers.

Ownership and Analyst Views

Public companies and individual investors hold 39.52% of DELL. ETFs account for 20.45%, mutual funds 15.46%, insiders 12.76%, and other institutional investors 11.81%.

Insider ownership of 12.76% is relatively high. Michael S. Dell personally holds 5.40%. Vanguard is the largest institutional holder, with 7.94%.

Wall Street currently has a Moderate Buy consensus on DELL, based on 12 Buy ratings and 5 Hold ratings. The average price target is $519.36, implying about 11% upside from current levels.

The highest analyst price target is $700, which implies potential upside of about 51%.

DELL trades at 24 times forward earnings. Analysts forecast 96.3% EPS growth for fiscal 2027, with double-digit growth expected in fiscal 2028.

The consensus price target of $509.86 from Barchart data implies about 10% upside from current levels.