Dell reported $16.4 billion in second-quarter AI-optimized server revenue and raised its full-year forecast to $74 billion.

Dell reported fiscal 2027 second-quarter revenue of $46.97 billion, compared with $29.776 billion a year earlier and analyst expectations of approximately $44.8 billion. Net income was $4.13 billion, while adjusted earnings per share were $7.04 and adjusted operating profit was $5.93 billion.

Revenue from servers designed and optimized for artificial-intelligence workloads reached $16.4 billion, versus a reported market expectation of $16.03 billion. Traditional server and networking revenue was $10.53 billion, and Infrastructure Solutions Group revenue totaled $31.78 billion.

Dell raised its full-year AI-optimized server revenue forecast to $74 billion from approximately $60 billion. The company also raised total fiscal-year revenue guidance to approximately $192 billion, plus or minus $2 billion, from its previous range of $165 billion to $169 billion; third-quarter revenue guidance was approximately $49 billion, plus or minus $500 million.

Management said demand was expanding across neocloud, sovereign-cloud and enterprise customers, with the customer count exceeding 6,500. Dell also cited shortages affecting dynamic random-access memory, NAND flash, some central processing units, hard drives, power components, mature-node chips and optical modules, while identifying about 1.2 million 14th-generation or older servers in the installed base as candidates for replacement.