Dell Technologies stock jumped as much as 10% in after-hours trading Tuesday after the Round Rock, Texas-based computer maker posted record fiscal second-quarter results and raised its full-year outlook, driven by what executives described as insatiable demand for AI-optimized servers.

The company reported record revenue of $46.97 billion for the quarter, up 58% from a year earlier and well ahead of the $44.92 billion Wall Street had penciled in, according to CNBC. Adjusted earnings per share came in at $7.04, up 203% year over year and more than $2 above the roughly $4.87-$4.91 analysts expected. GAAP earnings per share climbed 273% to $6.34.

The headline number, though, was the AI order book. Dell said it booked $60.9 billion in AI server orders during the quarter alone and exited with a record backlog of $95 billion, a figure that has ballooned as cloud providers, "neocloud" upstarts, sovereign governments and large enterprises race to buy AI infrastructure. Sales in Dell's Infrastructure Solutions Group, which houses the server business, rose 89% to $31.8 billion.

"Broadening" demand

"Demand is broadening across neoclouds, sovereigns, and enterprise customers, and our customer count has surpassed 6,500," Vice Chairman and Chief Operating Officer Jeff Clarke told analysts on the earnings call, adding that Dell has booked more than $130 billion in AI server orders over the past 12 months.

Buoyed by the results, Dell raised its full-year fiscal 2027 revenue guidance by $25 billion to a midpoint of $192 billion, implying roughly 70% annual growth, and lifted its adjusted earnings-per-share forecast to $25.50 from a prior $17.90, according to the company's official earnings release. For the current quarter, Dell is guiding to $49 billion in revenue, up roughly 80% year over year, and adjusted EPS of about $6.50.

The results land at a moment when investors have grown more skeptical of AI infrastructure spending broadly, questioning how long hyperscalers and cloud upstarts will keep pouring tens of billions of dollars into server buildouts. Dell's numbers, alongside a smaller but real jump in profitability at its server unit, offered some reassurance that the boom is still translating into hard revenue rather than just backlog promises, though some analysts flagged that server margins remain thinner than the company's traditional PC and storage lines, according to Investing.com's recap of the earnings slides.

Dell shares had already climbed sharply this year on AI optimism — the stock jumped 39% after its first-quarter report in May — and Tuesday's report extends that run. With the backlog now equal to roughly two full quarters of company-wide revenue, investors and analysts will be watching Dell's next report, due in late November, for signs of whether that order pipeline keeps converting into shipped, billed revenue at healthy margins, or whether supply constraints and pricing pressure start to bite.