Dell Reports Growth in AI Server Revenue and Backlog

Dell Technologies reported $9 billion in AI-optimized server revenue for Q4 FY2026, up 342% from the prior year. The company projects roughly $50 billion in AI server revenue for FY2027. Dell also reported a $43 billion AI server backlog entering FY2027, the largest disclosed pipeline among global OEMs. 8 billion.

Dell introduced eleven new PowerEdge servers for air-cooled and liquid-cooled environments. The lineup includes the liquid-cooled PowerEdge M9825 with AMD EPYC 6th Gen processors and the PowerCool CDU C7000 cooling distribution unit. 8 petabytes in a single 3U appliance.

Vice chairman and chief operating officer Jeff Clarke said token consumption for AI reasoning rose 320 times while token costs fell 80% in one year. He stated that 83% of the world's data sits on-premises and that routing agent workloads to the cloud creates latency and cost issues.

Clarke said most enterprises face an execution problem rooted in data rather than an ambition problem. He noted that 90% of enterprise data is unstructured and that agents require direct access to data files with tracking of lineage and updates. Dell unveiled its Deskside Agentic AI platform that combines workstations, Nvidia NemoClaw software, and OpenShell runtime security for local autonomous agent workflows.