Dell Technologies is riding two big waves: rising demand for AI servers and a strong push for sustainability. Recently, the company announced record second-quarter earnings and raised its revenue forecast for fiscal 2026. AI systems are now key to its growth and climate goals.
Dell’s AI Servers Drive a Big Revenue Jump
In the second quarter of fiscal 2026, Dell saw rapid growth in its AI sector. Revenue reached a record $29.8 billion, up 19% from last year. Operating income rose to $1.8 billion, a 27% increase. Earnings per share jumped 38% to $1.70, with adjusted EPS hitting a record $2.32.
The standout? AI servers. Built on NVIDIA chips, these systems drove a 44% revenue increase in Dell’s Infrastructure Solutions Group. Sales of servers and networking soared 69% to $12.9 billion. The company shipped $8.2 billion in AI systems, secured $5.6 billion in new orders, and ended the quarter with an $11.7 billion backlog.
This momentum led Dell to raise its AI server sales outlook to $20 billion for fiscal 2026, a 33% increase. The total expected annual revenue is now between $105 billion and $ 109 billion, a 12% increase from last year.
PCs Lag as Enterprise Demand Surges
While AI boosted Dell’s growth, the PC segment lagged. Sales grew only 1%, mainly due to corporate upgrades as support for Windows 10 ends in October. This weak outlook impacted Dell’s near-term forecast, with Q3 EPS projected at $2.45, which fell short of Wall Street’s expectations. Shares dropped nearly 5% after hours.
Even so, a clear trend is emerging. PCs may grow slowly, but enterprise spending on AI and cloud infrastructure is reshaping Dell’s growth story.
The Sustainability Thread in Dell’s Growth
Dell is aligning its growth with climate goals. The company uses circular economy principles in its supply chain and customer relationships. It aims to reduce waste, enhance resource efficiency, and cut emissions throughout its product lifecycle.
Dell has pledged to achieve net-zero emissions by 2050 across its value chain. Its 2030 goals focus on energy efficiency, renewable power, and responsible sourcing. This shows Dell’s belief that technology can help drive a low-carbon economy.
Tackling Energy and Emissions
Its sustainability report says that Dell targets Scope 1 emissions, including fuel use from corporate jets and vehicles. The company plans to switch to sustainable aviation fuel (SAF) and work with providers to expand access.
For its fleet, Dell is optimizing vehicle types and numbers while adding more electric options. Electrifying its fleet may raise electricity demand (and Scope 2 emissions), but Dell is balancing this by speeding up its renewable energy transition.
Like many tech firms, Dell’s Scope 2 emissions—from purchased electricity—make up most of its footprint. To address this, Dell invests in renewable power through virtual power purchase agreements (vPPAs), joint PPAs, and renewable energy credits. It is also exploring new on-site solar projects to lessen grid reliance.
It is making significant efficiency improvements in its labs and data centers, where much electricity is consumed. These sites power the servers driving AI growth, making energy efficiency vital for operations and climate goals.
Dell is also tackling Scope 3 emissions throughout its value chain, focusing on two areas: purchased goods and customer product use. Separate targets address both areas.
As it moves toward its 2030 goals, other Scope 3 categories will account for a larger share of emissions. While Categories 1 and 11 are priorities, Dell monitors all Scope 3 sources for meaningful reductions.
The Role of Carbon Credits in Dell’s Net Zero Goals
Dell knows some emissions will remain, even with aggressive decarbonization. The company plans to offset no more than 10% of its baseline emissions with carbon removals, following best practices from the Integrity Council for the Voluntary Carbon Market (ICVCM).
Currently, Dell is not engaging in large-scale carbon removals, focusing instead on its near-term 2030 decarbonization efforts. As technologies improve, Dell plans to acquire high-quality credits and removals to meet its net-zero target.
Building a Just Transition
Dell insists that the move to net zero must be fair. The company commits to sourcing renewable power only from projects that do not harm underserved communities. It integrates social responsibility into its supplier code, ensuring human rights and fair labor practices.
As a founding member of the Responsible Business Alliance, Dell requires suppliers to commit to decarbonization and respect for vulnerable workers. This involvement ensures its climate ambitions reach throughout its value chain.
Climate Resilience Through Digital Access
Dell views technology access as crucial for climate resilience. Its Solar Community Hub program offers solar-powered internet and computer access to underserved communities worldwide. By promoting digital inclusion, Dell aims to impact one billion lives by 2030, broadening the benefits of the clean energy transition.
Investors Ask: What’s Next?
With its stock outperforming the market this year, investors wonder about Dell’s next steps. According to experts, the answer likely lies in two areas:
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Earnings trajectory – Analysts will watch if Dell can sustain its AI-driven growth amid weaker PC demand and margin pressures.
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Sustainability execution – Stakeholders want Dell to show that its booming AI server business can grow without sacrificing climate commitments.
Dell’s guidance of $105–109 billion in annual revenue and $20 billion in AI server sales reflects confidence in growth and demand. Its detailed climate strategy indicates that Dell recognizes investors and customers want progress on emissions, not just profits.
