Dell Technologies (NYSE: DELL) posted a staggering $60.9 billion in AI server orders during its fiscal 2027 second quarter, surpassing the company’s total revenue of $47 billion for the same period.
The order figure and revenue figure measure different things, but the gap between them tells a clear story about the scale of demand Dell is now managing.
An order is a booking, a commitment that only becomes revenue once Dell builds and delivers the machines, making the comparison all the more striking.
Dell’s total revenue climbed 58% year over year to a record $47 billion, while non-GAAP adjusted earnings per share tripled to $7.04 during the quarter ended July 31, 2026.
AI server revenue alone hit a record $16.4 billion during the quarter, representing 100% growth year over year, as customers continued to pile into infrastructure spending.
The company exited the quarter with a record $95 billion AI server backlog, representing more than a year of AI server revenue at current delivery rates before accounting for any new orders.
Dell’s infrastructure segment revenue soared 89% year over year to $31.8 billion, with operating margin expanding to 15% from 8.8% a year earlier, despite what the company describes as substantial inflation in memory component costs.
Management now guides for $192 billion in full-year revenue, a $25 billion increase from its prior outlook and 69% above last year, with AI server revenue guidance raised from $60 billion to $74 billion.
Adjusted earnings per share guidance now stands at $25.50, representing growth of 148% year over year, reflecting the acceleration management expects in the second half of the fiscal year.
Hitting $74 billion in full-year AI server revenue requires the second half to deliver roughly $41.5 billion, or nearly $21 billion per quarter, a significant step up from current levels.
Despite the record profits, operating cash flow actually slipped to $2.2 billion from $2.5 billion a year earlier, even as net income more than tripled to $4.1 billion during the same period.
Inventories have doubled since the end of January to $21.3 billion as Dell stockpiles components and builds against its backlog, consuming substantial working capital in the process.
Financing receivables climbed to $20.4 billion from $14.3 billion over the same stretch, as Dell’s in-house financing arm lent more to customers purchasing equipment.
Dell’s adjusted free cash flow, which adds financing activity back in, came in at $8.1 billion for the quarter, up 224% year over year, offering a more favorable picture of underlying cash generation.
The company also priced a $5 billion senior notes offering, partly to repay notes coming due this year, underlining the capital intensity of building out AI server infrastructure at this pace.
Shares of Dell surged as much as 12% following the results, touching a fresh 52-week high, with the stock having more than quintupled from its 52-week low as of the time of the report.
At around $562 per share, the stock trades at roughly 22 times the adjusted earnings per share guided for the current fiscal year, a valuation that looks arguably fair given the nearly 70% revenue growth the company is projecting.
