Lofty analyst expectations frame Dell's Q2 print
Dell Technologies is scheduled to release fiscal second-quarter results after market hours on Tuesday, September 1, with Wall Street modeling sharply higher earnings and revenue than a year ago. The Zacks Consensus Estimate calls for $4.95 in adjusted earnings per share, more than double the $2.32 reported in the year-ago quarter, on revenue of $45.34 billion, up 52% from $29.78 billion a year earlier. Those consensus marks sit slightly above Dell's own prior guidance of $44 billion to $45 billion in revenue and $4.80 in adjusted EPS, plus or minus $0.10. Dell has rallied more than 260% year to date, leaving shares about 10% below a 52-week and all-time high of $514.
EPS revisions trend higher into the report
Estimate revisions heading into the print have tilted bullish. Zacks data show that over the last 90 days, fiscal 2027 EPS estimates climbed nearly 11% from $17.40 to $19.29, while fiscal 2028 EPS estimates rose almost 10% from $21.42 to $23.51. Dell's Zacks Expected Surprise Prediction points to an even higher outcome, with the most accurate recent analyst estimate placing Q2 EPS at $5.26, more than 6% above the $4.95 consensus. Dell beat Q1 EPS by nearly 60% and has averaged an earnings surprise of about 18.66% across its last four quarterly reports.
AI server demand anchors the growth case
Management has guided to roughly $15.5 billion in AI server revenue for the quarter, with the Infrastructure Solutions Group projected to grow about 75% year over year. That outlook follows a first quarter in which Dell generated $16.1 billion in AI-optimized server revenue, up 757% year over year, and booked $24.4 billion in AI orders. Dell subsequently raised its fiscal 2027 AI server revenue outlook to approximately $60 billion. J.P. Morgan told clients ahead of the report that Dell could lift its fiscal 2027 outlook again, citing continued demand for its AI hardware.
Nvidia and AMD ties shape Dell's AI hardware lineup
Most of Dell's AI revenue runs through its PowerEdge server line, including systems built through the Dell AI Factory partnership with Nvidia, featuring new PowerEdge designs based on Nvidia's next-generation Vera Rubin architecture. Dell has also been expanding its relationship with Advanced Micro Devices, offering AI platforms powered by AMD Instinct accelerators. Competition remains intense, with Hewlett Packard Enterprise, Super Micro Computer, and Lenovo Group all pursuing AI server and enterprise infrastructure deals.
Technical signals flash ahead of the print
A separate pre-earnings note flagged a technical pattern on Dell's chart, framing it as a "major last-minute signal" before the release and underscoring investor attention on the upcoming announcement. Combined with the upward EPS revision trend, the setup has kept buy-side focus on whether Dell can clear consensus and whether management will again raise full-year AI server guidance.
What to watch when results land
Investors will look for management's updated fiscal 2027 AI server revenue outlook, the Infrastructure Solutions Group growth rate relative to the roughly 75% guide, and any change to the full-year adjusted EPS framework. Margin commentary on AI server economics and backlog conversion from the $24.4 billion in Q1 AI orders will also be central to the read-through for the rest of fiscal 2027.
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