Dell Technologies Lifts FY2027 Revenue Outlook to $167B, Shares Soar 40%
CRWV•Dell Technologies forecasts fiscal 2027 revenue of $167 billion, driven by $60 billion in AI server sales, topping the prior $140 billion outlook and analysts’ $142.1 billion average estimate. Q1 sales climbed 88% to $43.8 billion with $24.4 billion in AI orders and a $51.3 billion AI server backlog.
1. Fiscal 2027 Outlook Revision
Dell Technologies raised its fiscal 2027 revenue forecast to $167 billion, surpassing prior guidance of $140 billion and analysts’ $142.1 billion average estimate. The company expects $60 billion to come from AI server sales.
2. Q1 Performance and AI Orders
In the quarter ended May 1, Dell reported sales of $43.8 billion, up 88% year-over-year, with AI server orders totaling $24.4 billion and AI server sales of $16.1 billion. Traditional CPU server revenue nearly doubled to $8.5 billion.
3. AI Server Backlog and Growth Prospects
Dell ended Q1 with a $51.3 billion backlog of AI server orders. COO Jeff Clarke noted that demand for AI compute shows no signs of slowing, while CFO David Kennedy highlighted expanding opportunities as customers shift from model training to AI deployment, supporting durable growth.
4. Margin Improvement and Profitability
The company focused on cost control and margin improvement as memory chip prices rose rapidly, delivering adjusted profit of $4.86 per share versus the $2.99 consensus. Management emphasized balancing investment in AI infrastructure with long-term profitability goals.
