North America
Dell Forecasts upbeat growth as AI-server demand surges
What Happened: Dell Technologies raises Q4 & Full-year forecasts, targets $25B 2026 AI-server revenue On Tuesday, Dell Technologies issued a bullish update on its financial outlook, raising both its quarterly and full-year revenue and profit forecasts. The company now expects fourth-quarter revenue …
Headline
What Happened: Dell Technologies raises Q4 & Full-year forecasts, targets $25B 2026 AI-server revenue On Tuesday, Dell Technologies issued a bullish update on its financial outlook, raising both its quarterly and full-year revenue and profit forecasts. The company now expects…
Context
On Tuesday, Dell Technologies issued a bullish update on its financial outlook, raising both its quarterly and full-year revenue and profit forecasts. The company now expects fourth-quarter revenue of US$31–32 billion, substantially above Wall Street’s estimates, and sees full-year 2026 AI-server revenue of US$25 billion, up from the previous US$20 billion projection. The surge in confidence stems from a dramatic upswing in demand for AI-optimised servers. During the most recent quarter, Dell reported US$12.3 billion in new AI-server orders and ended the quarter with a backlog of US$18.4 billion.
Evidence
Pending intelligence enrichment.
Analysis
Shipments are ramping up too: Dell shipped roughly US$5.6 billion worth of servers in the quarter. Its Infrastructure Solutions Group — which includes the server business — saw 24 % revenue growth, while its traditional PC-focused Client Solutions Group rose just 3 %. The demand surge comes from a mix of major customers: among those placing orders are the U.S. Department of Energy, the Abu Dhabi-based AI firm G42, and high-profile AI players such as xAI and CoreWeave. Also Read: Dell’s AI strategy drives up revenue forecasts Also Read: Global telecom capex to stabilise after peak, says Dell’Oro The sharp ramp-up in AI-server demand reflects the broader, relentless growth of AI workloads — from machine learning training to large-language-model serving. For Dell, this represents a major re-orientation: server infrastructure, especially AI-ready data-centre hardware, is fast becoming the company’s growth engine, overshadowing legacy PC sales.
Key Points
- Dell now expects about US$25 billion in AI-server revenue for fiscal 2026, up from a prior US$20 billion forecast.
- While AI orders and backlogs have reached record levels, the company still faces mounting cost pressures — prompting investors to watch carefully whether profits keep pace with the booming demand.
Actions
Pending intelligence enrichment.
