Dell Technologies reported a record $29 billion in revenues for the first quarter of fiscal 2027, marking an 181% year-over-year increase. The company’s Infrastructure Solutions Group (ISG) experienced a surge in demand for AI infrastructure, with AI-optimized server revenues jumping 757% to $16.1 billion. Operating income rose 206% to $3.1 billion, highlighting strong performance across traditional servers and storage, which grew by 92% and 8%, respectively.
During the same quarter, Dell booked $24.4 billion in AI orders, carrying a record AI backlog of $51.3 billion. The company raised its AI server revenue guidance for fiscal 2027 to $60 billion, as it continues to partner with industry leaders like NVIDIA, Google Cloud, and OpenAI. For fiscal Q2 2027, Dell expects revenues between $44 billion and $45 billion, with full-year revenues projected between $165 billion and $169 billion.
Despite robust growth, Dell faces increased competition from Super Micro Computer and Hewlett Packard Enterprise in the AI infrastructure space. Dell shares have increased by 213.2% year-to-date, significantly outperforming the Zacks Computer and Technology sector rise of 16.8%. The current Zacks Consensus Estimate for Dell’s fiscal 2027 earnings stands at $18.77 per share, projecting an 82.2% growth from the previous year.
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