Dell’s AI Surge Delivers Record Revenue Amid Margin Pressures

Dell Technologies posted exceptional second-quarter results, driven by unprecedented demand for its artificial intelligence server solutions. While revenue reached historic levels, investors scrutinized the details and found reasons for concern regarding profitability and forward guidance.

The company’s Infrastructure Solutions Group demonstrated remarkable strength, with revenue surging 44% year-over-year. Within this segment, server and networking sales experienced particularly explosive growth, climbing 69% to reach $12.9 billion. This performance contributed significantly to Dell’s overall quarterly revenue of $29.78 billion, representing a 19% increase compared to the same period last year.

Dell’s AI business has already achieved $10 billion in shipments during the first half of fiscal 2026, exceeding the total for the entire previous fiscal year. Based on this momentum, management has raised its Read more...