Dell surges 9% after lifting fiscal 2027 forecast on AI server strength

Dell Technologies shares moved 9% higher in extended trading on Tuesday after the computer maker reported results and a forecast that easily cleared Wall Street expectations.

Revenue came in higher than every estimate, growing about 58% year over year for the fiscal second quarter, which ended on July 31, according to a statement . Net income of $4.13 billion, or $6.34 per share, increased from $1.16 billion, or $1.70 per share, in the same quarter a year ago. Adjusted earnings exclude impact from stock-based compensation.

For the fiscal third quarter, Dell called for $6.50 in adjusted earnings per share on $49.0 billion in revenue, which implies 81% growth. Analysts polled by LSEG had anticipated $4.49 per share and $41.42 billion in revenue.

Dell ratcheted up its full-year view. The company now sees $25.50 in adjusted earnings per share on $192 billion in revenue. Analysts surveyed by LSEG were expecting $18.92 per share and $172.67 billion in revenue. As of May , the company's 2027 guidance included $17.90 in adjusted earnings per share, with $165 billion to $169 billion in revenue.

Price increases brought on by climbing input costs factor in to the elevated revenue guidance, Jeff Clarke, Dell's operating chief, said on a conference call with analysts.

As of Tuesday's close, Dell shares had gained 236% year to date, while the wider S&P 500 index is up 11% over the same period. The stock has become a popular choice for investors who want to bet on the continuing growth of artificial intelligence infrastructure. In July President Trump , who has bought Dell shares since returning to office last year, again recommended buying Dell computers .

Michael Dell, the company's founder, chairman and CEO, is now the world's fifth richest person, according to Bloomberg calculations.

"There's an old Texas saying I may have just made up...," Michael Dell posted on X after the results became available. "If you keep growing EPS 200%+ y/y something good will happen."