Dell raises annual forecasts as AI data center buildout fuels demand

Dell Technologies raised its annual revenue and profit forecasts on Thursday after reporting that demand for AI-optimized servers continues to accelerate as customers expand data centers.

The company said it closed more than $64 billion in AI-optimized server orders and entered fiscal 2027 with a record $43 billion backlog. Dell now expects about $50 billion in AI-optimized server revenue for the year.

The updated outlook helped reinforce a theme that has driven much of the hardware sector this year: enterprise spending on AI infrastructure remains strong, even as investors watch for signs that the buildout could slow.

Dell said it now expects fiscal 2027 revenue of $138 billion to $142 billion, with the midpoint at $140 billion. It also raised its profit outlook. Reuters reported that the forecast increase was tied to demand for AI data center buildout and Nvidia-powered servers.

The company’s fourth-quarter fiscal 2026 AI-optimized server revenue was $9.0 billion, up 342% from a year earlier, underscoring how quickly the business has scaled.

Dell’s earnings update follows a March presentation in which the company said its AI Factory with Nvidia was helping customers move AI projects from pilot to production at scale. The latest results suggest that demand for that infrastructure is still flowing through to orders and revenue.

Investors will be watching whether analysts revise estimates and whether the higher outlook is already reflected in Dell’s stock and consensus targets.