Dell’s revenue soars as demand for AI servers booms

By the Editorial Team · Thursday, September 3, 2026

Dell Technologies raised its full-year revenue forecast by $25 billion to $192 billion, fueled by a surge in AI server demand which drove a 58 percent quarterly revenue increase and tripled net income. This growth reflects widespread enterprise investment in AI infrastructure, with Dell's AI server sales expected to triple year-over-year, signaling a major shift toward strategic technology modernization.

Dell Technologies raised its full-year revenue forecast by $25 billion, driven by surging demand for artificial intelligence (AI) servers, the company reported Wednesday. The new guidance anticipates revenue reaching $192 billion in the year ending January, a substantial increase from its previous range of $165 billion to $169 billion set in May and well above analysts’ estimates.

The announcement sent Dell’s shares higher by about 10 percent in New York trading, pushing the stock price to approximately $425 per share. Year-to-date, the company’s shares have surged more than 200 percent amid strong investor enthusiasm for AI-related hardware.

Dell’s revenue for the quarter ending in July rose 58 percent from the previous year to $47 billion. Net income more than tripled, climbing to $4.1 billion from $1.2 billion a year earlier. The company attributes much of this growth to its AI server business, which benefited from increased spending by hyperscale cloud providers and enterprise customers adapting to AI workloads.

Chief Operating Officer Jeff Clarke highlighted the shift in IT environments from cost centers to strategic assets, emphasizing the portfolio-wide opportunities arising from AI investment. Dell’s AI servers, powered by Nvidia chips, handle the complex data processing necessary for AI applications. Customers include cloud computing firms like Coreweave and corporate users such as pharmaceutical company Eli Lilly, which leverages the servers for drug discovery efforts.

The AI server division posted a record quarter with $16.4 billion in revenue and a backlog of $95 billion in orders. For the full year, Dell expects AI server sales to reach $74 billion—an increase of 200 percent compared with the previous year. Analysts from JP Morgan noted the clear momentum behind the company’s AI-driven growth.

Growth extended beyond AI servers to Dell’s traditional businesses, with server and networking revenue rising 122 percent year-on-year and storage revenue up 26 percent. Industry analyst Naveen Chhabra of Forrester observed that Dell’s results indicate enterprise AI spending is maturing beyond initial experimentation, triggering widespread infrastructure modernization across networking, storage, security, and computing systems.

Clarke also acknowledged that price increases contributed to the division’s performance. Rising input costs, particularly for memory chips, have prompted Dell to raise prices amid efforts by hyperscalers to secure supply for expanding data centers. Despite this, Clarke said demand remains robust, underscoring that technology needs outpaced supply over the recent quarters.

“The underlying demand for technology is significant,” Clarke stated. “Demand outran supply last quarter. Demand outran supply this quarter. The pipeline remains robust.”

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.