Dell Technologies (NYSE: DELL) shares are posting one of the largest single-day gains for a mega-cap hardware name this year, reversing Tuesday’s pre-earnings selloff after a blockbuster quarterly report.
Dell stock climbed 9% to $463 in early Wednesday trading, as Wall Street scrambled to revise price targets against a dramatically upgraded revenue outlook.
The company posted fiscal Q2 2027 revenue of $47 billion, a 58% year-over-year increase, with adjusted earnings per share of $7.04, up 203% from the prior year period.
Net income reached $4.6 billion, up 189%, while operating income came in at $5.9 billion, underlining the operating leverage Dell is extracting from its AI server business.
The headline catalyst was $60.9 billion in AI server orders during the quarter, of which $16.4 billion was recognized as revenue, leaving the company with a record $95 billion AI backlog.
Dell’s AI customer base now exceeds 6,500, while Infrastructure Solutions Group revenue hit a record $31.8 billion, including $10.5 billion from traditional servers and networking and $4.9 billion from storage.
CEO Jeff Clarke stated in the earnings release: “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.”
Dell raised its fiscal 2027 revenue guide by $25 billion to $192 billion and now expects AI server revenue to triple to $74 billion for the full year, with Q3 revenue guided to $49 billion at the midpoint.
Hewlett Packard Enterprise (NYSE: HPE) shares climbed 4% to $53 on read-across sentiment, a notable move given that HPE stock had already gained 114% year to date through Tuesday’s close.
Super Micro Computer (NASDAQ: SMCI) was the clear laggard of the group, ticking up just 1% to $37 despite carrying the purest AI server exposure of the three companies.
Dell stock was up 241% year to date through Tuesday’s close, far outpacing Super Micro’s 25% gain over the same span, reflecting a decisive shift in AI server market share and investor conviction.
NVIDIA (NASDAQ: NVDA), the GPU supplier powering the AI systems Dell is shipping, was up 17% year to date through Tuesday’s close, a comparatively modest gain as the AI hardware trade broadens beyond chips into full-stack systems.
Broader tech benchmarks were largely unmoved by Dell’s report, with the Invesco QQQ Trust (NASDAQ: QQQ) slipping 0.2% to $706 and the iShares U.S. Technology ETF (NYSEARCA: IYW) flat at $248.
Dell’s own commentary flagged that demand is outpacing available supply, with memory, wafer, and power availability remaining hard ceilings across the enterprise hardware industry.
Investors will be watching whether the operating leverage that drove Infrastructure Solutions Group operating income up 225% in the quarter holds as AI server mix continues to climb within Dell’s revenue base.
The durability of the $95 billion backlog also remains a key open question, given that enterprise AI deployments depend heavily on customers’ own power, cooling, and networking readiness before systems can ship.
