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Two of the biggest names in enterprise tech just dropped earnings that make the AI spending boom look anything but tired. Dell Technologies posted fiscal Q2 2027 revenue of $46.97 billion, a 58% jump from the same period last year, while Palo Alto Networks delivered fiscal Q4 2026 revenue of $3.41 billion, up 34% year-over-year. Both cleared Wall Street’s bar by a comfortable margin.
Dell’s AI machine keeps accelerating
Dell reported adjusted earnings per share of $7.04, compared to consensus expectations of roughly $4.92. AI server revenue reached $16.4 billion in the quarter alone. Dell raised its full-year AI server revenue target to $74 billion, its overall FY2027 revenue guidance to approximately $192 billion, and its adjusted EPS target to $25.50. The company cited record AI backlog and orders as the driving force. Dell shares climbed around 9% in after-hours trading following the report.
Palo Alto Networks rides the AI security wave
Palo Alto Networks posted revenue of $3.41 billion, topping the consensus estimate of roughly $3.35 billion, and adjusted EPS of $1.02 edged past the $0.98 expectation. For the full fiscal year 2026, Palo Alto Networks generated $11.48 billion in total revenue. The company issued FY2027 guidance calling for revenue between $14.1 billion and $14.2 billion, with adjusted EPS projected at $4.16 to $4.19. The stock’s initial after-hours gains faded as investors zeroed in on margin concerns.
The divergence in market reactions, Dell surging while Palo Alto gave back its gains, underscores a key dynamic in the current AI trade. Investors are willing to pay up for companies where AI demand flows directly and visibly to the bottom line. Where the profitability picture is murkier, enthusiasm is more conditional.
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