Dell’s ISG Hits $19.6 B Q4 Revenue, Eyes $50 B AI Segment
ISG reported record Q4 revenues of $19.6 billion, up 73% year over year, and full-year revenues of $60.8 billion, up 40%, driven by accelerating demand for high-performance servers and storage. AI-optimized server revenue reached $9 billion in Q4, with a $43 billion backlog and fiscal 2027 AI revenue guidance of $50 billion.
1. ISG Revenue Surges in Fiscal 2026
The Infrastructure Solutions Group posted Q4 revenue of $19.6 billion, up 73% year over year, and full-year revenue of $60.8 billion, up 40%, driven by strong sales of servers and storage platforms as enterprises modernize data centers.
2. AI Infrastructure Fuels Growth Outlook
AI-optimized server revenues reached $9 billion in Q4, supported by accelerating enterprise demand, while a record $43 billion backlog underpins Dell’s forecast of approximately $50 billion in AI revenue for fiscal 2027, representing nearly 100% growth.
3. Stock Performance and Valuation
Dell shares have rallied 16.8% year to date, outperforming the broader technology sector, and trade at a forward P/E of 13.0, well below the industry average of 28.9; analysts project 24.2% revenue growth and 13.8% EPS growth in fiscal 2027.