Dell Technologies posted a blowout quarter, and the market reacted quickly. The stock rose as much as 10% in after-hours trading on Tuesday after fiscal second-quarter results came in well ahead of Wall Street expectations. With shares already up sharply this year and trading at a premium to their historical valuation, the report gave investors fresh evidence that demand for AI infrastructure is still supporting Dell’s growth.

Dell Technologies Inc. (NYSE: DELL) reported adjusted earnings of $7.04 per share for its fiscal second quarter of 2027, far above analyst estimates of $4.91 per share. A year earlier, the company reported adjusted EPS of $2.32, meaning the latest result marked a 203% increase year over year.

Revenue reached a record $47 billion, topping analyst expectations of $44.9 billion. That was up 58% from the $29.8 billion Dell posted in the same quarter last year.

The stock was trading around $425 at Tuesday’s close before climbing to $467 in after-hours trading.

$DELL TECHNOLOGIES Q2’27 EARNINGS HIGHLIGHTS

🔹 Revenue: $47.0B (Est. $44.92B) 🟢; +58% YoY
🔹 Adj. EPS: $7.04 (Est. $4.91) 🟢; +203% YoY
🔹 AI-Optimized Servers Revenue: $16.4B (Est. $16B) 🟢; +100% YoY
🔹 ISG Revenue: $31.8B (Est. $29.8B) 🟢; +89% YoY
🔹 Raises FY27 Guide: 🔹… pic.twitter.com/ORJkuaqY6L

— Wall St Engine (@wallstengine) September 1, 2026

Dell’s AI server business was the main driver of growth. AI-Optimized Servers revenue reached $16.4 billion in the quarter, doubling from the prior year. The company also booked a record $60.9 billion in AI server orders during the period and ended the quarter with a record $95 billion backlog in that business.

“IT environments have shifted from cost centers to value drivers that fuel growth and competitive advantage,” said Jeff Clarke, chief operating officer of Dell, in the earnings release.

Dell also raised its full-year revenue outlook to $192 billion from its previous guidance of $167 billion. The new forecast is well above the $174 billion analysts had expected.

“With AI momentum accelerating and our opportunity expanding across the portfolio, we’re raising our full-year FY27 revenue outlook by $25 billion to $192 billion, up nearly 70% year over year,” Clarke said.

Traditional server, networking, and storage businesses also posted growth in the quarter, adding broader support to the results and showing that the top line was not driven by a single segment alone.

The bar was already high heading into the report. Dell shares were up more than 230% year to date and had been trading at about 20.3 times forward earnings before the results, above the company’s five-year average of 10.9 times forward earnings.

That valuation left little room for error, but Dell still came in well ahead of expectations.

Peer Hewlett Packard Enterprise, which is also up around 110% year to date, moved higher in after-hours trading after Dell’s results. Other hardware names have also posted strong numbers recently. Super Micro Computer reported better-than-expected fiscal fourth-quarter earnings on August 11 and issued a positive full-year outlook. Cisco Systems also reported solid results, citing AI hardware demand as an important factor.

Dell ended the fiscal second quarter with a $95 billion AI server backlog, the highest in company history. For investors watching the AI hardware buildout, that backlog offers a visible pipeline of demand that will be monitored closely in upcoming quarters.