Dell up 8% overnight, profit triples, pivot?
Dell surged more than 8% in after‑hours trading this morning, with its market capitalization approaching $300 billion and the stock briefly touching $460.
On the news front, the company just reported its fiscal 2027 second‑quarter results. Quarterly revenue reached $46.97 billion, up 58% year‑over‑year and setting a new all‑time high, beating market expectations of $44.78 billion. Adjusted earnings per share came in at $7.04, a staggering 203% increase from a year ago and far exceeding the consensus estimate of $4.897.
Most notably, Dell significantly raised its full‑year fiscal 2027 revenue guidance to $192 billion – a $25 billion increase from its previous outlook of approximately $167 billion – representing a 69% year‑over‑year growth rate, well ahead of analysts' average forecast of $173.8 billion.
The quarter's AI revenue was primarily driven by demand for the Blackwell series. With the rollout of the Rubin series new products in the second half of the year, the average selling price (ASP) of Dell's AI servers is expected to rise further, and the company is charging ahead in its server business.
In addition, Dell's management said on the conference call that growth momentum continues across all business lines, with AI server demand accelerating at an explosive pace. At the end of the second quarter, the backlog of orders reached an unprecedented $95 billion. Vice Chairman and Chief Operating Officer Jeff Clarke revealed that cumulative AI server orders over the past 12 months have exceeded $130 billion, and the number of AI factory customers has surpassed 6,500, of which 3,300 were added in the last three quarters alone. AI demand is spreading broadly from large cloud service providers to sovereign nations and traditional enterprises. At the same time, the legacy business is also experiencing growth, driven by data center modernization and direct pull‑through from CPU servers for AI agent workloads.
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