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Dell Hits Record Revenue as AI Drives Growth

Dell posted record Q2 revenue of $29.8B, driven by $8.2B in AI server sales, as its customer base expands across industries despite PC and storage challenges.

Written By

Allison Francis

Sep 2, 2025

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Dell Technologies just delivered a record-setting second quarter, reporting $29.8 billion in revenue, up 19% year over year, even as its storage and consumer PC businesses struggled. Vice Chairman and COO Jeff Clarke acknowledged those challenges but made it clear what’s driving momentum: artificial intelligence.

“Customers are getting real value out of AI. They have deployed it into real, difficult problems. There is a return on those investments,” Clarke said during the company’s earnings call.

AI server sales stole the spotlight. Dell shipped $8.2 billion worth of products in Q2, bringing first-half sales to $10 billion, already surpassing all of last year’s sales. The company closed the quarter with an $11.7 billion backlog and boosted its full-year forecast for AI server shipments to $20 billion.

Why Dell says it is expanding its AI customer base

Clarke emphasized that Dell is reaching more customers than ever with its enterprise AI solutions.

“It’s the single largest number of customers that we sold to in a quarter,” he said. “We now have eight consecutive quarters of quarter-over-quarter growth of the buyer base. The mix now is roughly 50 percent new customers and 50 percent returning customers.”

That momentum spans almost every sector, including technology, manufacturing, finance, engineering, education, and healthcare. This highlights just how widespread AI adoption has become. Clarke added that more companies are moving past test runs and rolling AI projects into full production.

Mixed outlook and investor reaction

Even with record revenue and a stronger full-year outlook, Dell’s forecast for the current quarter fell a bit short of Wall Street’s expectations. The company projected adjusted earnings of $2.45 per share at the midpoint, just under analyst estimates, and revenue of $26.5 to $27.5 billion.

That outlook pushed Dell’s stock down nearly 9% in early trading Friday. Even so, analysts are still holding out hope about its long-term prospects, pointing to AI servers as the main growth driver, though PCs and older server lines are still holding things back.

Balancing growth and risk

Dell raised its full-year revenue forecast to between $105 billion and $109 billion, up from its earlier outlook of $101 billion to $105 billion. It also nudged its earnings guidance higher, with a midpoint of $9.55 per share.

PC and storage challenges are still present, of course, but Dell’s role in the AI buildout has kept it front and center.

As Clarke put it: “We’ve now shipped $10 billion of AI solutions in the first half of FY26, surpassing all shipments in FY25. Demand for our AI solutions continues to be exceptional.”

Dell’s record quarter underscores just how much AI is reshaping business strategies, and it’s not just the big players feeling the impact. MSPs and IT providers are also navigating this turning point as customers demand outcomes that extend well beyond technology alone. Read more here.

Allison Francis

Allison is a contributing writer for Channel Insider, specializing in news for IT service providers. She has crafted diverse marketing, public relations, and online content for top B2B and B2C organizations through various roles. Allison has extensive experience with small to midsized B2B and channel companies, focusing on brand-building, content and education strategy, and community engagement. With over a decade in the industry, she brings deep insights and expertise to her work. In her personal life, Allison enjoys hiking, photography, and traveling to the far-flung places of the world.

Dell Hits Record Revenue as AI Drives Growth

Why Dell says it is expanding its AI customer base

Mixed outlook and investor reaction

Balancing growth and risk

Allison Francis

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