Dell FY2027 Q2: AI Server Backlog Hits Record $95B, Raises Outlook

The record $95B AI server backlog signals sustained enterprise demand, but the 12.5% operating cash flow decline underscores the working capital cost of scaling this business. Raising guidance by $25B suggests management sees the backlog converting, yet the cash flow strain raises the question of how sustainable this growth is without margin or efficiency offsets. The key watch point is whether cash flow catches up to revenue growth in coming quarters, as that would determine the quality of this expansion.