Dell Technologies, in its earnings report for fiscal 2025, has revealed that AI is at the center of its growth strategy for driving its business forward.
The company reported $9.8 billion in AI server shipments for fiscal 2025, reinforcing its leadership in AI-driven solutions. It became the first to ship Nvidia NVL-72 GB200-supported servers and expanded its AI-optimized portfolio with five new platforms, including Blackwell architectures.
Enterprise adoption continues to accelerate, with over 2,000 enterprise customers leveraging Dell’s AI capabilities. The company also secured the #1 position in commercial AI PCs globally, underlining its influence across both infrastructure and client solutions.
Financially, Dell delivered a strong fiscal year with revenue reaching $95.6 billion, an 8 percent increase year over year. Operating income climbed 15 percent to $6.2 billion. The momentum continued in the fourth quarter, with revenue of $23.9 billion, up 7 percent, and operating income surging 40 percent to $2.2 billion.
Demand for AI solutions remained high, with orders totaling $1.7 billion and shipments of $2.1 billion. Dell exited the quarter with an AI backlog of $4.1 billion, which expanded to approximately $9 billion in February, fueled by partnerships with xAI and others.
Jeff Clarke, vice chairman and chief operating officer, Dell Technologies, said: “Our prospects for AI are strong, as we extend AI from the largest cloud service providers, into the enterprise at-scale, and out to the edge with the PC. The deals we’ve booked with xAI and others puts our AI server backlog at roughly $9 billion as of today.”
Dell projects revenue for fiscal 2026 to be between $101 billion and $105 billion, reflecting an 8 percent growth rate at the midpoint. The Infrastructure Solutions Group (ISG) is expected to be a major driver, with AI server shipments forecasted at $15 billion.
ISG saw remarkable growth in fiscal 2025, with full-year revenue climbing 29 percent to $43.6 billion and operating income rising 30 percent to $5.6 billion. The fourth quarter saw a 22 percent increase in ISG revenue.
The servers and networking category performed particularly well, driven by AI and traditional server demand, posting a 37 percent revenue increase to $6.6 billion. Storage revenue also grew by 5 percent, reaching $4.7 billion. The ISG segment achieved a record fourth-quarter operating income of $2.1 billion, marking a 44 percent year-over-year increase.
Despite facing challenges in the Client Solutions Group (CSG), Dell maintained stability in this segment. Full-year revenue for CSG was $48.4 billion, reflecting a slight decline of 1 percent year over year. Operating income for the segment fell 20 percent to $3.0 billion.
However, in the fourth quarter, CSG revenue increased by 1 percent year over year to $11.9 billion, with commercial client revenue rising 5 percent to $10 billion. Consumer revenue, on the other hand, declined by 12 percent to $1.9 billion. Fourth-quarter operating income for CSG was $631 million, representing a 19 percent decrease year over year.
Dell leadership is optimistic about the company’s ability to sustain its momentum, with executives highlighting the role of AI in driving future expansion. The company’s AI prospects continue to strengthen as it extends AI capabilities from the largest cloud service providers to enterprise-scale solutions and out to edge computing with AI-powered PCs.
Baburajan Kizhakedath
