Dell again lifts forecasts as AI demand powers record results

Dell Technologies announced a new outlook for fiscal 2026, lifting both revenue and profit forecasts as demand for AI‑optimized servers surges.

Record‑breaking AI server demand

The company said its customers are investing heavily in data‑center infrastructure to support generative AI workloads, driving a sharp increase in orders for its PowerEdge servers equipped with the latest GPUs and custom accelerators.

Financial outlook revisions

Dell now expects fiscal‑year revenue of $95 billion, up from its prior $92 billion target, and an adjusted earnings‑per‑share range of $6.00 to $6.30, compared with the earlier $5.70 to $6.00 guidance.

The revisions reflect a stronger-than‑anticipated uptake of AI solutions across cloud providers, enterprises, and research institutions, which Dell says is “accelerating the modernization of data‑center fleets.”

Impact on other business segments

While server sales are booming, Dell’s client‑computing division remains stable, with modest growth in PCs and peripherals. The firm also highlighted continued momentum in its storage and networking units, which benefit from the same AI‑driven capacity upgrades.

• AI‑optimized server sales up 45% YoY
• Data‑center storage revenue up 22% YoY
• Client PC shipments flat year‑over‑year

Outlook for the broader tech industry

Analysts note that Dell’s forecast lift underscores a broader trend: technology firms are allocating billions to expand compute capacity, a pattern that could sustain server‑market growth through 2027.

“The AI wave is translating into tangible demand for high‑performance infrastructure, and Dell is well positioned to capture that upside.”

Dell’s CEO emphasized that the company will continue to invest in research and development to stay ahead of evolving AI workloads, while also expanding its services portfolio to offer end‑to‑end solutions for customers.

For a detailed report, see Reuters coverage of Dell’s AI‑driven forecast lift.