Dell Technologies reports fiscal second quarter results Tuesday after the close, and the options market is braced for a large reaction. Contracts expiring September 4 imply a swing of roughly 11% in either direction.
The at-the-money straddle, a paired call and put at the same strike, cost about $52 against Dell’s $456.01 close on Monday. Buyers profit only if the stock travels further.
What Dell Guided For, and What Analysts Expect
Dell guided to revenue of $44 billion to $45 billion for the quarter, adjusted earnings of about $4.80 a share, and roughly $15.5 billion of AI server revenue. It expected its Infrastructure Solutions Group, the server and storage division, to grow about 75%.
Zacks Investment Research puts the consensus at $4.72 a share across five forecasts. Dell earned $2.10 in the year-ago quarter.
The bar is high because the previous quarter reset it. Revenue reached $43.8 billion in Dell’s record first quarter beat, up 88% year over year, and adjusted earnings of $4.86 landed far above Wall Street’s estimate.
Management then raised the full-year revenue outlook to $167 billion at the midpoint and lifted its AI server target to $60 billion. Shares have climbed roughly 260% in 2026 on that artificial intelligence demand.
“We booked $24.4 billion in AI orders and recognized $16.1 billion of AI server revenue. We’re increasing our AI server revenue expectations for FY27 to $60 billion, which only goes to show the AI opportunity shows no signs of slowing,” said Jeff Clarke, Dell vice chairman and chief operating officer, in the quarterly release.
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The Numbers That Will Move Dell Stock
Orders and backlog now matter more than the headline figure. Dell booked $24.4 billion of AI orders last quarter and closed with a record $51.3 billion AI backlog.
Margins are the second test. AI servers earn thinner margins than storage, and Chief Financial Officer David Kennedy has flagged memory chips, processors and hard drives as supply bottlenecks.
Dell has also described an inflationary parts market that forces frequent repricing, so a revenue beat paired with weaker margins would land badly. Data center names have already drawn profit-taking after big rallies.
Wall Street still leans positive. Of 15 analysts covering the stock, 11 rate it a buy and four a hold, with an average target of $523.54 and a low of $434.
Nvidia’s own quarterly beat drew only a modest reaction last week. Whether Dell raises its full-year guide again, and what it says about second-half supply, will decide which side of the straddle pays.
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