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Dell enters Q2 FY2027 on September 1 with a $51.3 billion AI server backlog and a $60 billion annual server target that has sent DELL 260% higher in 2026.
- Dell booked $24.4 billion in AI server orders during Q1 FY2027, pushing its total AI backlog to a record $51.3 billion with a book-to-bill ratio near 1.5x.
- Q1 FY2027 AI server revenue hit $16.1 billion, up 757% year-over-year, producing DELL's best single trading session ever in May 2026.
- Wall Street consensus calls for Q2 adjusted EPS of $4.87; full-year guidance targets $165-$169 billion in total revenue and $17.90 in adjusted EPS.
Lead
Dell Technologies (DELL) carries a record $51.3 billion artificial intelligence server backlog into its second-quarter fiscal 2027 earnings report on Tuesday, September 1, arriving after-market at 4:30 p.m. ET. The company enters the quarter committed to $60 billion in AI-optimized server revenue for all of FY2027 - representing 100% year-over-year growth over fiscal 2026 levels - and a stock that has climbed 260% in calendar 2026 to trade near $491 per share. Having already delivered $16.1 billion in AI server revenue in Q1 alone, Dell now needs to average $14.6 billion per quarter across the remaining three periods to meet its full-year pledge, a threshold the backlog suggests is well within reach.Why Did Dell Stock Post Its Best Day Ever in May?
On May 29, 2026, DELL shares surged 32%, the single largest one-day gain in the company's history as a public entity, after Q1 results exceeded every major analyst estimate by a significant margin. Total Q1 revenue reached $43.84 billion, against the $35.43 billion Wall Street had projected - the fastest annual growth rate since Dell returned to public markets in 2018. Adjusted earnings per share came in at $4.86, compared to the $2.94 consensus. The Infrastructure Solutions Group, which houses AI servers and data center equipment, posted revenue of $29 billion, up 181% year-over-year and more than $6 billion above the StreetAccount consensus. The quarter repositioned DELL as one of the central names in the current cycle of ai stocks, directly alongside chipmakers and hyperscale infrastructure players. Management followed the print by raising full-year revenue guidance to $165-$169 billion and full-year adjusted EPS to $17.90, both well above prior targets.
What Does Wall Street Expect From Dell's Q2 Results?
Consensus calls for Q2 adjusted EPS of $4.87, just above the company's own Q2 guidance of $4.80. Revenue at the midpoint of the $44-45 billion guidance range would represent roughly 50% year-over-year growth. AI server expectations for the quarter center on approximately $15.5 billion - a modest step-down from Q1's $16.1 billion - though the 1.5x book-to-bill ratio from Q1 signals that orders continue to outpace shipments and that demand is not decelerating. At current levels, DELL trades at approximately 27 times guided full-year earnings, with analyst price targets averaging $504.73 and the highest published target reaching $700.
The Backlog Debate
Embedded in Tuesday's release will be a figure markets will watch closely: the sequential change in the AI server backlog. The $51.3 billion figure from Q1 already represents a level that would fund more than three quarters of shipments at Q1's pace. A continued build in that number would signal that AI infrastructure demand is still expanding faster than Dell can fulfill it. A flattening or draw-down would confirm that the company is finally catching up to accumulated demand - a neutral-to-positive signal for margins, but one that could test investor expectations anchored to the Q1 surge.
Infrastructure Strategy and Competitive Position
Dell's partnership with NVIDIA (NVDA) has positioned the company as the dominant distribution layer between GPU production and hyperscale data center deployment. The AI server business has effectively reoriented Dell's revenue mix: the Infrastructure Solutions Group, which includes servers, storage, and networking, now accounts for the majority of group revenue after growing from a secondary segment to the company's primary growth engine within two fiscal years. The Client Solutions Group - traditional PCs and workstations - is providing a secondary growth catalyst as corporate AI PC refresh cycles begin to gain traction, though the data center business is the undisputed margin and revenue driver.Outlook
Dell heads into Tuesday's Q2 report holding a rare combination: a quantified, contracted demand backlog of $51.3 billion and a stock that has already re-rated to reflect the structural shift in enterprise AI infrastructure spending. The critical variable on September 1 is whether management signals continued AI server acceleration in the second half of FY2027 or confirms that Q1's 757% year-over-year growth rate was a peak catch-up moment. Full-year guidance of $165-$169 billion in revenue and $17.90 in adjusted EPS frames the outer bounds; the backlog trajectory and any revision to the $60 billion AI server commitment will determine whether DELL extends its 2026 gains or consolidates them.
Mentioned tickers: DELL, NVDA
