Dell (NYSE: DELL) will report its fiscal 2027 second-quarter earnings on Sept. 1 after the market closes, with investors watching for signs that the company’s momentum can continue.
Year to date, the company has already delivered a strong performance, up more than 230%. Now, earnings will tell us if there’s more upside in the works. Also, while expectations are elevated, Evercore ISI analysts say Dell can clear Wall Street’s increasingly high bar. The firm also just initiated a tactical outperform call on the stock, arguing that the company could beat earnings expectations and raise its fiscal 2027 outlook.
Analysts Expect Another Strong Report
Evercore added that the earnings bar is high, but achievable. Plus, a key question heading into the report is whether Dell will raise its server growth target. Evercore expects the company’s top-line performance to be driven primarily by its server and storage businesses, with storage standing out as what he described as the company’s “highest return asset.”
Analysts at JPMorgan added that Dell is expected to raise guidance, with the increase driven by both artificial intelligence (AI) and non-AI demand. With a $565 price target and an overweight rating, the firm noted that: “We expect Dell to raise its FY27 (Jan-end) revenue guidance once again, building on the already upgraded outlook of +47% growth,” said J.P. Morgan analysts, as quoted by Seeking Alpha. JP Morgan added that it expects to see further improvements for two reasons.
One, AI server demand will remain strong. 650 Group now expects the AI server market to grow more than 80% in 2026, up from 64% 90 days ago. And two, non-AI server demand is also improving. Industry forecasts now expect server growth of more than 30% in 2026, up from 22% previously. This is supported by stronger-than-expected results so far this earnings season and recent checks with industry contacts, as also highlighted by Seeking Alpha.
Dell is Also a Key Beneficiary of AI Spending
We also have to consider that the company has become one of the major beneficiaries of the significant spending being made in artificial intelligence infrastructure. Companies building and operating AI data centers require vast amounts of computing equipment, servers and storage, creating a significant opportunity for hardware providers.
The spending plans of major customers are particularly important because Dell’s growth prospects are closely tied to the broader expansion of data-center and AI infrastructure. If those customers continue to increase their investments, Dell could have additional opportunities to grow its AI-related server business and strengthen its position in the rapidly expanding market.
Earnings Could Set the Next Direction
Dell’s earnings report comes at a critical moment for the stock.
After a roughly 235% gain in 2026, investors have already priced in substantial optimism around the company’s AI opportunity. That means the company may need to deliver more than simply solid results. So, a beat, stronger guidance and evidence of sustained demand for AI servers and storage could provide the catalyst bulls are looking for.
At the same time, elevated expectations leave little room for disappointment. Any signs of slowing customer spending, weaker infrastructure demand or pressure on margins could prompt investors to reassess the stock’s rapid rise.
For now, analysts remain optimistic. Evercore expects Dell to beat expectations and raise its fiscal 2027 outlook, while Woodring sees potential upside from both its traditional infrastructure operations and AI server business. With expectations already high, Dell’s upcoming report could determine whether its extraordinary 2026 rally has further room to run or whether investors have finally priced in much of the company’s AI-driven growth.
