# Dell Stock Q3 2026: Revenue Up 58% as AI Server Backlog Reaches $95bn and PCs Slow
> Dell stock Q3 2026: revenue up 58% to $47.0bn, AI orders of $60.9bn, a $95bn backlog, FY27 guidance raised to $192bn, PC slump risk and DELL valuation.

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## Facts
- Ticker: DELL
- QSILabs fair value: $272.10 USD
- Price: $424.30 (as of 2026-10-30)
- As of: Fiscal Q2 FY2027 results (quarter ended 2026-07-31); price as of 2026-10-30 close
- Published: 2026-11-02
- Updated: 2026-11-02
- Author: QSI Labs Research
- Canonical: https://www.quantitativesuperintelligencelabs.com/research/dell-stock-q3-2026-earnings-ai-servers-backlog/

## Short answer
Dell stock Q3 2026 coverage starts with the biggest quarter in the company's history and a sharp sell-off. Dell Technologies (NYSE: DELL) grew revenue 58% to $47.0bn in its fiscal second quarter of 2027, the three months to 31 July 2026, which the company called a record. AI-optimized servers brought in $16.4bn, double a year earlier, and Dell booked $60.9bn of AI orders, leaving a $95bn AI backlog. Diluted EPS rose 273% to $6.34 and Dell raised its fiscal 2027 revenue guidance by $25bn to $192.0bn. Then, on 30 October, Intel warned that memory shortages would shrink the PC market by about 12% in 2026 and 10% in 2027, and DELL fell 10.8% to $424.30. Our discounted cash flow model puts Dell at $272.1 a share. The growth is real; the question is how much of it lasts once the AI build-out and memory prices normalize.

## Key takeaways
- Revenue up 58%. Fiscal Q2 FY27 revenue was $46,971m, up from $29,776m a year earlier. Infrastructure Solutions Group (ISG) revenue rose 89% to $31.8bn and Client Solutions Group (CSG) revenue rose 20% to $15.0bn.
- AI servers doubled. AI-optimized servers revenue was $16.4bn, up 100%. Dell booked $60.9bn of AI orders in the quarter and ended it with a $95bn AI backlog; the company described all three as records.
- Servers beyond AI grew faster still. Traditional servers and networking revenue rose 122% to $10.5bn and storage 26% to $4.9bn.
- Profit grew faster than sales. GAAP operating income rose 204% to $5,385m, an 11.5% operating margin against 6.0% a year earlier. Diluted EPS was $6.34, up 273%; non-GAAP EPS was $7.04, up 203%.
- Guidance raised again. Dell now expects fiscal 2027 revenue of $192.0bn (previously $167.0bn), AI server revenue of $74.0bn (previously $60.0bn) and non-GAAP EPS of $25.50, and fiscal Q3 revenue of $49.0bn, up 81%.
- Cash lagged profit. Operating cash flow was $2.2bn in the quarter, down 13%, as inventories doubled in six months to $21.3bn to support the AI build. Dell still returned $4.3bn to shareholders, mostly through buybacks.
- Our value: $272.1 a share, about 36% below the $424.30 close on 30 October 2026, as of 2 November 2026. A two-stage cross-check gives $279.2; the average analyst price target was $595 before the late-October fall.

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