Dell's F2Q27 Non-GAAP EPS of $7.04 and revenue of $47 billion both exceeded expectations. The company raised its FY27 traditional server revenue growth guidance to "over 100%." Goldman Sachs raised its price target to $570, citing a shift in growth logic driven by AI.
Dell's Q2 FY2027 results comprehensively exceeded expectations, with Non-GAAP EPS of $7.04, significantly surpassing Goldman Sachs' estimate of $4.96 and market consensus. Revenue reached $47 billion, also exceeding Goldman Sachs' estimate. The company simultaneously raised its full-year outlook significantly, increasing its FY27 traditional server revenue growth guidance from "over 60%" to "over 100%", and upgrading its storage business growth forecast from mid-single digits to mid-double digits. Goldman Sachs commented that the sustained demand for enterprise IT hardware upgrades, coupled with investments in AI-related infrastructure, provides Dell with differentiated long-term growth support. Goldman Sachs maintained a Buy rating on Dell, raised its 12-month price target from $510 to $570, and increased its average EPS forecast for the three years from FY27 to FY29 by 38%.
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