Dell raises annual sales forecast as surging AI server demand drives growth

Dell Technologies chief financial officer David Kennedy said rising demand for AI servers is helping drive the company’s sales growth and prompted Dell to raise its annual outlook, according to an interview highlighted by Bloomberg and a report from CNBC. Kennedy also addressed Dell’s $9.7 billion Pentagon software contract, saying the deal contributes only a relatively small amount to this year’s guidance because most of its value will be recognized over five years.

The comments underscore how central AI infrastructure has become to Dell’s business as major customers continue to spend on servers, storage and related systems needed to train and run artificial intelligence models. Kennedy said the stronger AI server pipeline was a key reason Dell boosted its sales forecast, signaling that the company expects demand to remain robust beyond a single quarter or product cycle.