Dell's latest disclosure shows that the core business driving the upward revision of the company's performance expectations comes from AI servers. The company stated that this quarter, AI server orders reached $60.9 billion, AI optimized server revenue was $16.4 billion, and as of the end of July, the AI backlog orders rose to $95 billion.

AI Server orders reach a new high

The company disclosed that over the past 12 months, Dell has converted $131.7 billion in AI demand into orders, and the current sales pipeline is still significantly higher than the existing backlog of orders. The number of customers is also continuing to grow; the AI infrastructure customer base has exceeded 6,500, with approximately 3,300 new customers added in the past three quarters.

This has also prompted Dell to raise its relevant business guidance. The company has raised its revenue forecast for AI optimized servers for the fiscal year 2027 from $60 billion to $74 billion, and at the same time increased its total annual revenue forecast to $192 billion. The adjusted earnings per share forecast has risen to $25.50.

Profit margins have improved simultaneously.

In addition to revenue growth, the AI business also contributed to improved profit performance. Dell stated that the operating profit of its Infrastructure Solutions Group increased by 225% year-over-year, reaching $4.78 billion, and the operating margin rose from 8.8% in the same period last year to 15%.

During the same period, infrastructure business revenue reached $31.8 billion, of which traditional server and network services contributed $10.5 billion, and storage services contributed $4.9 billion. Market attention has shifted from the simple expansion of AI demand to whether these orders can be continuously converted into revenue and profit.

Stock price recovers from the previous day's decline

After the release of the performance and guidance, Dell's stock price recouped about 7% of its pre-market decline. The company's disclosure this time strengthened market expectations for the growth of its AI infrastructure business, and also made the speed of subsequent order fulfillment a focus of investors' attention.