Dell Q2 Earnings Set to Test AI Server Momentum Amid Rising Expectations

Key points

• Dell expects Q2 revenue of $45.34 billion, a 52% year-over-year increase, with AI server revenue projected at $15.5 billion.
• The Zacks Consensus Estimate for Q2 earnings is $4.95 per share, more than double the $2.32 reported a year ago.
• Dell’s stock trades at a 24x forward earnings multiple, 10% below its all-time high of $514, despite a massive rally.
• Analyst estimates for FY27 and FY28 earnings have risen sharply, with FY27 EPS revisions increasing by nearly 11% in the last 90 days.
• Dell’s AI-optimized server revenue in Q1 reached $16.1 billion, up 757% year-over-year, and the company raised its FY27 AI server revenue outlook to $60 billion.

Background

Dell has been a focal point in AI infrastructure discussions, with earlier coverage highlighting its potential for 2027 breakout alongside Micron and Super Micro Computer. The company’s recent Q1 performance, which included $24.4 billion in AI orders, set the stage for current bullish sentiment. While competitors like HPE and Lenovo are also vying for AI server contracts, Dell’s expanding partnerships with Nvidia and AMD have positioned it as a key hardware beneficiary of AI spending.

Why it matters

Dell’s Q2 results will serve as a critical gauge for the broader AI infrastructure market. A strong performance could reinforce the bullish case for AI hardware stocks, while any disappointment might signal a slowdown in the rapid expansion of AI data centers. The company’s ability to maintain margins while scaling AI shipments will be closely watched by investors.

What to watch

Investors will focus on Dell’s Q2 earnings report on September 1, 2026, to see if the company can meet or exceed the high expectations set by analysts. The report will also provide insights into the company’s future AI server revenue trajectory and its competitive position against rivals like HPE and Super Micro Computer.