Dell's AI server sales to hit $20 billion in fiscal 2026
Dell just raised its annual revenue forecast to $105-109 billion, fueled by booming demand for AI-powered servers built with NVIDIA chips.
The company now expects $20 billion from AI server sales—up a hefty 33% from its earlier estimate.
This jump follows a strong second quarter, where Dell pulled in $29.8 billion in revenue and beat earnings expectations.
AI servers drove a 44% revenue jump last quarter
Dell's Infrastructure Solutions Group (think servers and storage) saw huge growth last quarter—up 44%.
Server and networking sales alone soared 69% to $12.9 billion.
Even though profit margins slipped to 18.7%, Dell landed $5.6 billion in new AI orders and shipped $8.2 billion worth of AI systems, leaving an impressive backlog of $11.7 billion.
PC growth remains slow at just 1%
Despite the wins, Dell's Q3 profit forecast of $2.45 per share fell short of what analysts wanted, causing shares to dip nearly 5% after hours.
On the PC side, growth was modest at just 1%, mostly because people are upgrading their devices as Windows 10 support ends in October—so expect more folks swapping out old laptops soon.