Dell revenue jumps 88% as it rides enterprise AI wave
Dell revenue jumps 88% as it rides enterprise AI wave
https://www.ciodive.com/news/dell-revenue-rides-enterprise-ai-wave/821523/
Publish Date: 2026-05-29 14:42:00
Source Domain: www.ciodive.com
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Dive Brief:
- Dell Technologies’ revenue soared in the first quarter of its fiscal 2027, driven by enterprise investments in AI infrastructure and compute power. The technology company’s revenue reached $43.8 billion for the quarter, up 88% year over year.
- AI was a powerful driver behind Dell’s record quarter. The company booked $24.4 billion in AI orders and saw $16.1 billion of AI-optimized server revenue. Meanwhile, traditional server and networking revenue also surged to $8.5 billion, a 92% increase year over year.
- “The majority of demand was driven by large enterprise customers refreshing their compute environments and expanding capacities to support growing workloads,” Dell COO Jeff Clarke said, referring to traditional servers during the company’s earnings call on Thursday. “For many large customers, ensuring compute availability to modernize and grow remains their highest priority.”
Dive Insight:
Dell is among a growing cohort of technology vendors reaping the rewards of AI infrastructure investments as enterprises secure supply in support of workloads.
Nvidia, a key infrastructure player, reported earlier this month that its revenue jumped 85% in the first quarter of its fiscal 2027 due to infrastructure demand. Meanwhile, Microsoft, Google and AWS are funneling significant amounts of money into building out critical pieces of AI infrastructure, including data centers and chips, alongside rising enterprise demand.
Together, the three major hyperscalers have shared plans to invest more than half a trillion dollars in capital expenditures for AI infrastructure this fiscal year while enterprises are expected to more than double…
