The company had guided to around $167 billion back in May. AI servers account for $74 billion of the new figure, which Dell said is roughly three times last year's AI-server tally. It is also the fifth consecutive quarter that Dell's fiscal-year outlook has come in ahead of estimates.
The surge reflects contracts for systems built with Nvidia's AI chips and steady demand for traditional servers. Dell noted that central processing units, or CPUs, have regained traction because they help handle tasks such as managing AI agents. Management also highlighted tight cost control, including higher PC prices to offset sharply rising memory costs. Operating expenses are running at just 8% of sales, a company record low.
On an adjusted basis, Dell expects $25.50 in earnings per share for the fiscal year, topping the $19.10 average estimate from analysts. The stock rose about 4% in late trading after finishing at $425 in New York. Shares have more than tripled this year even after sliding 14% since their August 13 peak.
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AI servers are doing the heavy lifting in Dell's forecast, while tighter costs and firmer PC pricing support margins. If you follow how AI demand is shaping hardware makers, this update shows where the money is flowing and how quickly expectations are moving.