Dell Raises Sales Forecast on AI Server Demand

Dell said Tuesday that revenue for its quarter ending in July rose 58% from the year-ago quarter to $47 billion, beating the high end of its own forecast. The maker of personal computers and servers for AI data centers increased its outlook for the year ending in January 2027 by $25 billion to $192 billion, which would represent a 70% increase from the year-ago.

Dell attributed the rosier forecast to sales of its AI servers. The company anticipated $74 billion from AI server revenue in its current fiscal year, up 200% year on year. Its server customers include the Pentagon, CoreWeave, and Nscale. Net income for the quarter rose 255% to $4.1 billion.

Dell’s stock rose 8% during extended trading hours Tuesday. It has risen 237% this year. The report follows another earnings windfall from Nvidia, the main beneficiary of hardware tied to AI.