Dell raised its annual revenue forecast by $25 billion. Its stock soared.

Dell raised its annual revenue forecast by $25 billion at once—the company now expects to generate a total of $192 billion. This is further confirmation of the rapidly growing demand for servers used for artificial intelligence, according to Bloomberg. Dell’s stock rose nearly 10% in premarket trading on September 2.

According to Dell’s new forecast, revenue for fiscal year 2027—which ends in late January—will reach $192 billion. As recently as this spring, the company had estimated that the figure would be $25 billion lower. Specifically, sales of AI servers are expected to generate $74 billion, which is three times the previous year’s figure.

Dell's new annual revenue guidance turned out to be 10% higher than Wall Street's consensus estimate, according to Bloomberg. The company's expectations have exceeded market estimates for the fifth consecutive quarter.

Dell's annual earnings are expected to reach $25.5 per share—while analysts had predicted an average of $19.1.

In the second quarter, the company's revenue soared 58%, reaching a record $47 billion and also beating Wall Street estimates, according to Reuters. Adjusted earnings per share came in at $7.04, compared with a consensus estimate of $4.91.

Amid the neural network boom, Dell is seeing explosive sales growth in two hardware segments at once. First and foremost, cloud providers such as CoreWeave and Nscale Global, as well as enterprise customers, are buying up specialized AI servers based on Nvidia chips for resource-intensive computing. Over the past 12 months, Dell has received orders for this equipment totaling more than $130 billion, and its backlog of unfulfilled contracts reached $95 billion by the end of the second quarter. This guarantees the company a solid pipeline of future revenue for months to come, explains Bloomberg.

But the development of AI is also fueling demand for traditional servers based on classic central processing units. These have proven to be the most effective for managing “AI agents”—programs that perform autonomous tasks.

“In just the last two quarters, traditional servers and networking equipment have generated nearly as much revenue for us as we’ve ever earned in an entire year at any other time in our history,” Chief Operating Officer Jeff Clark emphasized during a conference call.

Since the beginning of the year, Dell's stock price has more than tripled, although it has pulled back 14% from the all-time high recorded on August 13.

22 out of 31 analysts tracking the company’s stock recommend buying it. The remaining ten advise holding onto their positions. Dell no longer has any “bearish” ratings—three months ago, it had one. The average price target implies a 21% upside potential relative to the closing price on September 1.

This article was AI-translated and verified by a human editor