Dell Lifts Outlook to $167B on $60B AI Sales, Wins $9.7B Pentagon Deal
DELL•Dell Technologies raised its fiscal 2027 revenue outlook from about $140bn to $167bn, driven by $60bn in AI server sales. Its federal systems unit secured a five-year, $9.7bn Pentagon software purchasing agreement covering Microsoft licenses, cloud subscriptions and limited Azure support.
1. Fiscal 2027 Outlook Raised to $167B
Dell Technologies raised its full-year fiscal 2027 revenue outlook to about $167 billion, up from a prior estimate of approximately $140 billion. The boost reflects expected AI server sales totaling $60 billion, citing strong demand from cloud renters and major AI providers.
2. Secured $9.7B Pentagon Software Agreement
Dell Federal Systems secured a five-year, $9.7 billion firm-fixed-price blanket purchase agreement under the Defense Department’s Enterprise Software Initiative. The pact centralizes procurement of Microsoft software licenses, cloud-based subscriptions, Software Assurance services and limited Azure support for the Department of Defense, Intelligence Community and U.S. Coast Guard.
3. First-Quarter Financial Performance
In the first quarter, Dell posted revenue of $43.8 billion, an 88% increase from the prior year’s period, driven by AI-focused and traditional server sales. Adjusted profit per share was $4.86, topping estimates, while the AI server order backlog stood at $51.3 billion at quarter-end.
