Dell Technologies raised its fiscal 2027 revenue guidance to $192 billion, well above consensus estimates of $172.7 billion, citing sustained demand for AI servers. The company also lifted its adjusted earnings per share forecast to $25.50 from an expected $18.90.
AI server revenue is now projected at $74 billion for the fiscal year, up from Street estimates of $65.8 billion. The AI backlog ended the second quarter at $51.3 billion, the highest on record for the company.
Dell's updated forecast represents an 11 percent increase over previous guidance. The company's server business has become its primary growth driver as customers accelerate spending on compute capacity for large language models and other AI workloads.
The guidance lift comes after Dell posted results that exceeded quarterly expectations. The backlog figure provides visibility into near-term revenue, as the company converts these orders into shipped systems over the coming quarters.
Dell's AI server business now represents nearly 39 percent of its revised total revenue forecast. Competitors including Hewlett Packard Enterprise and Super Micro Computer have reported similar strength in AI-related orders over the past two quarters.
The company's backlog expansion and raised guidance assume sustained enterprise appetite for AI infrastructure through the remainder of the fiscal year. Any slowdown in large customer deployments or order deferrals could pressure Dell's ability to meet the raised targets in coming quarters.
