Dell Stock Rallies After Strong Q2 Earnings and Bullish AI Server Outlook

ROUND ROCK, Texas, Aug. 28, 2025 - Dell Technologies Inc. (NYSE: DELL) shares closed higher on Thursday following the company’s better-than-expected second-quarter results, raised full-year guidance and a robust forecast for AI server sales.

In regular trading, Dell stock closed at $134.05, up 0.26% from Wednesday’s settlement of $133.70.

In after-hours trading, shares climbed a further 1.52% to $133.70 on news of the company’s raised projections and AI-driven growth strategy.

Dell reported Q2 fiscal 2026 revenue of $29.8 billion, a 19% year-over-year increase and above analysts’ expectations of $29.17 billion. Diluted earnings per share reached $1.70, up 38% year-over-year, while non-GAAP EPS was $2.32, a 19% increase and slightly above the consensus forecast of $2.30.

The results were buoyed by record AI server shipments, which drove Dell’s Infrastructure Solutions Group (ISG) revenue to $16.8 billion, up 44% year-over-year. Servers and Networking alone generated $12.9 billion, up 69% from the prior year. Dell now expects to ship $20 billion of AI servers in fiscal 2026, doubling last year’s volume and underscoring strong enterprise demand.

On the back of the strong quarter and accelerated AI growth, Dell raised its full-year revenue forecast to a range of $105 billion to $109 billion, up from a previous outlook of $101 billion to $105 billion. Adjusted EPS guidance was lifted to $9.55, compared to the prior projection of $9.40. For the third quarter, Dell projects revenue between $26.5 billion and $27.5 billion, exceeding the Street estimate of $26.05 billion, but anticipates adjusted EPS of $2.45, slightly below the consensus of $2.55.

Management highlighted continued strength in the AI infrastructure pipeline, noting notable wins with customers including xAI and CoreWeave and a robust backlog of AI server orders valued at $11.7 billion at quarter-end.

Following the earnings release and guidance raise, analysts remain optimistic on Dell’s AI-driven growth trajectory, with several price-target increases announced ahead of the print. Investors will be closely watching margin trends and the company’s ability to sustain high-growth levels in its AI server business as Dell enters the back half of fiscal 2026.