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Scan for outdated or missing drivers - takes under a minuteDriver Scan →Clear out junk files and repair common Windows errorsFree Scan →Yes: in Dell Technologies’ fiscal second quarter of 2027, infrastructure revenue grew much faster than client-device revenue. Infrastructure Solutions Group (ISG), which includes servers, networking and storage, brought in $31.8 billion, up 89% year over year. Client Solutions Group (CSG), which includes PCs, generated $15.0 billion, up 20%. Dell’s results show an infrastructure-led growth story—not a retreat from PCs, and not growth driven entirely by AI servers.
The figures cover the quarter ended July 31, 2026, and were reported September 1, 2026. Revenue is money recognized for the period; Dell’s orders, backlog and full-year guidance are different measures and should not be read as revenue already earned.
How Dell’s infrastructure and PC businesses compare
Dell reported $47.0 billion in total Q2 FY2027 revenue, up 58% from the same quarter a year earlier. ISG accounted for most of that revenue and grew more quickly than CSG. The segment comparison is useful, but it is not a pure server-versus-PC comparison: ISG includes storage and networking, while CSG includes commercial and consumer client products.
| Business or category | Q2 FY2027 revenue | Year-over-year change | Scope |
|---|---|---|---|
| Infrastructure Solutions Group (ISG) | $31.8 billion | +89% | Servers, networking and storage |
| AI-optimized servers | $16.4 billion | +100% | Product category within ISG |
| Traditional servers and networking | $10.5 billion | +122% | Product category within ISG |
| Storage | $4.9 billion | +26% | Product category within ISG |
| Client Solutions Group (CSG) | $15.0 billion | +20% | Client products, including commercial and consumer PCs |
| Commercial clients | $13.2 billion | +22% | Category within CSG |
| Consumer | $1.8 billion | +7% | Category within CSG |
All revenue and growth figures in the table are Dell-reported results for Q2 FY2027, compared with Q2 FY2026. The product categories sit within the segment totals, so they should not be added to those totals as though they were separate businesses. Dell’s Q2 FY2027 results filing provides the reported figures.
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What “growth engine” means here
ISG’s 89% growth rate substantially outpaced CSG’s 20%, and ISG’s $31.8 billion in quarterly revenue was more than twice CSG’s $15.0 billion. On those measures, infrastructure was Dell’s larger and faster-growing business in the quarter. But CSG still grew, with commercial clients up 22% and consumer revenue up 7%. Dell is not reporting that it has abandoned PCs.
Nor does “infrastructure” mean “AI servers only.” AI-optimized server revenue was $16.4 billion, while traditional servers and networking generated $10.5 billion and storage generated $4.9 billion. Dell’s Form 10-Q says ISG growth was driven chiefly by AI-optimized servers, with additional contribution from traditional servers and networking and storage. It also reports that mix shifting toward AI-optimized servers affected first-half gross margin rates, partly offset by disciplined pricing. The filing discusses those company-reported drivers and margin context.
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AI orders and backlog are not the same as sales
Dell reported $60.9 billion in AI orders during Q2 FY2027 and an ending AI backlog of $95 billion. It also said AI server orders over the preceding 12 months totaled $131.7 billion. Those measures indicate demand and unfulfilled business, but they are not recognized quarterly revenue: the $16.4 billion AI-optimized server revenue figure is the quarter’s reported sales measure.
The earnings materials do not establish how much of the $95 billion backlog will convert into revenue, when conversion will occur, how concentrated it is among customers, or its exposure to cancellations. A large backlog is not a guarantee that every order will be delivered or recognized on a particular schedule. Dell’s earnings call materials discuss orders and backlog.
Why Dell says demand is broadening
Dell COO Jeff Clarke said on the September 1, 2026 earnings call: “AI is an important catalyst, but the opportunity extends well beyond AI optimized infrastructure.” He described customers modernizing data centers for AI and non-AI workloads, and attributed traditional server demand to data-center refreshes, security and resiliency needs, and CPU capacity for AI and agentic workloads. These are management’s explanations for demand, not independent proof of what caused each sale.
Dell also said demand was broadening among neocloud providers, sovereign customers and enterprises, and that its AI customer count had passed 6,500. The company points to engineering, deployment expertise, supply-chain scale and customer reach as competitive strengths; those are Dell’s own characterizations. Reuters separately reported that AI cloud providers including Nscale and CoreWeave were seeking Dell servers, and that Dell had raised prices on some products, including PCs, amid memory-chip shortages. Reuters’ September 1, 2026 report provides that outside context.
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What Dell’s FY2027 forecast says—and does not say
On September 1, 2026, Dell raised its FY2027 revenue guidance to $192 billion and its AI-optimized server revenue guidance to $74 billion. These are management forecasts for the full fiscal year, not completed sales. At the February 26, 2026 FY2026 results release, Dell had guided to a $140 billion midpoint for FY2027 revenue and roughly $50 billion in AI-optimized server revenue. The revision reflects a change in management’s outlook; it does not mean the revised amounts have already been earned. Dell’s February 2026 release gives the earlier forecast, and its September Q2 filing reports the updated outlook.
The filing also says the revenue increase was primarily driven by ISG, with a smaller contribution from CSG and an offset from lower Corporate and other revenue, including lower VMware resale revenue after Dell stopped distributing standalone VMware offerings. That detail reinforces why Dell’s overall growth cannot be reduced to a single product category.
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What the results mean for readers
- For investors: The reported quarter shows exceptional infrastructure growth and a substantial contribution from AI-optimized servers, but orders, backlog and guidance are not realized revenue. The filing’s margin discussion is relevant alongside the growth rates.
- For PC buyers: Dell’s PC business grew in the quarter, but company-wide infrastructure growth was faster. Segment results alone do not establish the price, availability or value of a particular PC.
- For enterprise technology buyers: Dell’s figures show a mix of AI-optimized systems, traditional servers and networking, and storage. The reported financial mix does not determine which infrastructure is right for a specific workload.
Dell’s Q2 FY2027 results establish that servers and broader infrastructure were its main growth engine by growth rate and revenue contribution. They also show that PCs remained a growing business, while the mix of growth extended beyond AI servers.
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