Dell Technologies (DELL) Stock Soars 7% as AI Server Backlog Hits $95 Billion

Key Highlights

• Quarterly revenue reached $46.97 billion, representing a 58% year-over-year increase and exceeding analyst projections of $44.89 billion
• Non-GAAP EPS of $7.04 significantly surpassed the Street’s $4.91 expectation
• The company secured $61 billion in new AI server orders, bringing cumulative AI backlog to roughly $95 billion
• FY27 revenue outlook upgraded to around $192 billion with adjusted EPS guidance increased to $25.50
• Wall Street firms elevated price targets, with JPMorgan reaching $635 and Mizuho hitting $600, maintaining overall “Moderate Buy” sentiment

Shares of Dell Technologies (DELL) climbed approximately 7% during trading sessions following the technology giant’s release of exceptionally strong quarterly results. The stock reached an intraday peak of $534.99 before stabilizing near $525.66, with trading volume exceeding typical daily averages by roughly 30%.

Dell Technologies Inc., DELL

The July quarter delivered $46.97 billion in total revenue, marking a 57.7% year-over-year expansion that substantially exceeded Wall Street’s $44.89 billion projection. Non-GAAP earnings per share of $7.04 demolished analyst estimates of $4.91, beating consensus by over $2 per share.

Performance was strong across all major segments. The traditional Server and Networking division exploded by 122%, AI-optimized servers doubled with 100% growth, Storage advanced 26%, and the Client Solutions Group (PC division) increased 20%.

Massive AI Pipeline Commands Attention

The quarter generated $16.4 billion in AI server revenue. Dell booked $61 billion worth of fresh AI server orders during the period, elevating the company’s cumulative AI order backlog to approximately $95 billion. While this figure has captured significant Wall Street interest, several analysts emphasize the importance of margin profiles associated with fulfilling these orders rather than the backlog size alone.

The Infrastructure Solutions Group (ISG) achieved 15% operating margins, representing a 630-basis-point improvement compared to the prior year. Storage business strength contributed meaningfully to this margin expansion.

Evercore ISI dropped Dell from its Tactical Outperform roster following the substantial price appreciation post-earnings, though the firm maintained its Top Pick designation with an Outperform rating and $575 target. The analyst highlighted ongoing supply constraints as a factor supporting sustained momentum.

Outlook Receives Substantial Upgrade

Dell elevated its fiscal 2027 revenue forecast to approximately $192 billion, suggesting roughly 70% year-over-year expansion. The company’s updated non-GAAP EPS projection now stands at approximately $25.50, a dramatic increase from the previous $17.90 estimate.

For the upcoming third quarter of FY27, management guided toward $6.50 in adjusted earnings per share.

Multiple Wall Street firms responded by increasing their price objectives. JPMorgan elevated its target to $635. Mizuho boosted its forecast to $600 while maintaining an Outperform stance. Raymond James moved to $617. Goldman Sachs also raised expectations, pointing to AI server momentum and expanding profitability. Morgan Stanley and TD Cowen expressed continued optimism.

Deutsche Bank launched coverage with a Hold recommendation and $480 price target, representing the only reserved perspective among major banking institutions.

Across 36 sell-side analysts, the consensus rating registers as “Moderate Buy,” with a mean price target of $553.79. The breakdown includes one Strong Buy, 26 Buy recommendations, and nine Hold ratings.

Regarding insider activity, director-affiliated entities divested more than $58 million in shares during July at approximately $453 per share. Institutional ownership represents 76.37% of outstanding shares.

The company also announced a $0.63 per share quarterly dividend, scheduled for October 30 payment to shareholders of record as of October 20.