AI Servers Power Revenue Surge
Dell Technologies has significantly raised its long-term annual revenue and profit growth forecasts, fueled by soaring demand for
AI servers built on
NVIDIA chips[1]. In the second quarter of fiscal 2026, Dell reported record earnings:
- Revenue reached $29.8 billion, up 19% year-over-year[1][2].
- Operating income rose to $1.8 billion, a 27% increase[1].
- Earnings per share jumped 38% to $1.70.
- Adjusted EPS hit a record $2.32.
Dell shipped
$8.2 billion in AI systems during the quarter, with $5.6 billion in new orders and an $11.7 billion backlog[1][2]. Forecast for AI server sales now stands at $20 billion for fiscal 2026—a 33% increase—while total annual revenue guidance is between $105 billion and $109 billion, representing a 12% increase from last year[1].
Enterprise AI Demand Surges, PC Sales Lag
While the AI sector fuels growth, Dell’s PC segment experienced minimal gains with just 1% sales growth—mostly from corporate upgrades before Windows 10 support ends in October. This limited performance dampened Dell’s short-term Q3 projections, with EPS expected at $2.45, below Wall Street estimates and causing shares to fall nearly 5% after hours[1].
Sustainability Embedded in Dell’s Growth Strategy
Dell is integrating its rapid AI-driven expansion with robust sustainability initiatives:
- Net-zero emissions pledge by 2050 across its value chain.
- 2030 targets focus on energy efficiency, renewable power, and responsible sourcing.
- Recycle and resource efficiency practices throughout the supply chain.
Dell is working to minimize
Scope 1 (direct emissions from jets and vehicles) by switching to sustainable aviation fuel and electrifying its fleet, which in turn increases Scope 2 emissions that Dell balances with renewable power investments. Most of Dell’s carbon footprint comes from
Scope 2 emissions (purchased electricity), addressed through virtual power purchase agreements and renewable energy credits, as well as efficiency improvements in labs and data centers that power its AI infrastructure[1].
Reducing Value Chain Emissions
Dell targets critical
Scope 3 emissions—both from purchased goods and customer product use—through dedicated reduction targets. As Dell approaches its 2030 sustainability goals, reductions in these categories will provide a larger portion of total emission cuts, supplementing progress made in Scopes 1 and 2[1].
Role of Carbon Credits
Recognizing that not all emissions can be eliminated, Dell plans to offset no more than 10% of baseline emissions using verified carbon removals and follows best practices from the Integrity Council for the Voluntary Carbon Market (ICVCM)[1]. This balanced approach aims to combine business growth from AI servers with meaningful action on climate commitments.
Industry Outlook
Dell's raised forecasts demonstrate confidence in the sustained enterprise demand for AI and cloud technologies. Investors and customers increasingly expect technology leaders like Dell to meet growth targets while achieving tangible progress on emissions and climate goals[1].
Dell's raised forecasts demonstrate confidence in the sustained enterprise demand for AI and cloud technologies. Investors and customers increasingly expect technology leaders like Dell to meet growth targets while achieving tangible progress on emissions and climate goals[1].
Dell's raised forecasts demonstrate confidence in the sustained enterprise demand for AI and cloud technologies. Investors and customers increasingly expect technology leaders like Dell to meet growth targets while achieving tangible progress on emissions and climate goals[1].
