QE Quarterly EarningsIntelligence
DELLInformation TechnologyTechnology Hardware, Storage & Peripherals

Dell Technologies

An 88% revenue increase, record AI and traditional-server demand, and a $27B full-year revenue raise produced a second thesis-changing quarter.

ResultBeatGuidanceMixed / newly framedEnvironmentmixed
Latest eventFY2027 Q128 May 2026Open full analysis
Latest quarter

The investment read-through

[AS-040][P-040]
Reported result

Beat

Revenue of $43.84B compared with consensus near $35.43B, while EPS of $4.86 compared with about $2.94. AI-server revenue reached $16.1B, orders $24.4B and backlog $51.3B. Traditional server revenue of $8.5B rose 92%, showing a broader compute cycle.

Guidance

Mixed / newly framed

FY2027 revenue rose to $165–169B, EPS to $17.90 ± $0.25 and AI revenue to $60B; Q2 revenue was $44–45B and EPS $4.80 ± $0.10.

Implied cadence

Deceleration

The midpoint implies H2 revenue of about $78.7B versus $88.3B in H1 and H2 EPS of $8.24 versus $9.66, a supply- and margin-driven deceleration rather than weaker demand.

Stock reaction

+32.8% 1D

The roughly 33% surge reflected a guidance reset far beyond even recently raised expectations.

Latest narrative

What the market is now debating

The bull case broadened from AI servers to a full compute refresh; the remaining risk is execution against supply constraints and second-half margin pressure.

Next signal

Component allocations and the conversion rate of AI backlog into revenue without incremental gross-margin erosion.

Market environment deltaEnvironmentmixed

Supply availability—not customer appetite—became the binding constraint, while agentic AI expanded the role of traditional servers.

Demand
AI infrastructure demand remained broad and traditional servers gained a structural inference and orchestration use case rather than relying only on a refresh cycle.
Supply
DRAM, NAND, CPU and hard-drive allocation tightened, lead times lengthened and customers began using multi-year arrangements to secure infrastructure.
Competition
Dell's scale, procurement access and rapid repricing supported share gains against smaller vendors and ODMs, but competitors with secured supply could still pressure pricing.
[AS-ME-040]
Industry-specific KPIs

What this company should be judged on

AI server ordersAI server backlogISG revenueStorage growthGross margin
Latest KPI read-through

The direct read-through was to AI-server shipments and backlog, traditional-server revenue, CSG and ISG margin, inventory, working capital and free cash flow.

[AS-ME-040]
Eight-event history

Guidance and narrative timeline

8
28 May 2026

FY2027 Q1

GuidanceMixed / newly framedEnvironmentmixed

An 88% revenue increase, record AI and traditional-server demand, and a $27B full-year revenue raise produced a second thesis-changing quarter.

GuidanceFY2027 revenue rose to $165–169B, EPS to $17.90 ± $0.25 and AI revenue to $60B; Q2 revenue was $44–45B and EPS $4.80 ± $0.10.NarrativeThe bull case broadened from AI servers to a full compute refresh; the remaining risk is execution against supply constraints and second-half margin pressure.
FY2027 Q1Full analysis→
7
26 Feb 2026

FY2026 Q4

GuidanceMixed / newly framedEnvironmentmixed

Record AI orders and a FY2027 outlook far above consensus reframed Dell as an AI-infrastructure compounder despite a demanding pricing and margin bridge.

GuidanceFY2027 revenue was $138–142B, EPS $12.90 ± $0.25 and AI-server revenue about $50B; the dividend rose 20% and buyback authorization by $10B.NarrativeThe debate moved from whether Dell had AI demand to whether it could price through memory inflation and preserve non-AI gross margins.
FY2026 Q4Full analysis→
6
25 Nov 2025

FY2026 Q3

GuidanceMixed / newly framedEnvironmentmixed

Record AI orders and a $18.4B backlog supported a large Q4 and full-year raise, though the initial rally faded as investors debated supply and margins.

GuidanceQ4 revenue was $31–32B and EPS $3.50 ± $0.10; FY2026 revenue rose to $111.2–112.2B, EPS to about $9.92 and AI-server revenue to at least $25B.NarrativeThe print made AI conversion credible and shifted the unresolved risk toward supply-chain availability and margin discipline.
FY2026 Q3Full analysis→
5
28 Aug 2025

FY2026 Q2

GuidanceMixed / newly framedEnvironmentmixed

Dell lifted its AI, revenue and EPS outlook after an $8.2B AI shipment quarter, but gross-margin dilution and a soft Q3 EPS guide dominated the reaction.

GuidanceFY2026 revenue rose to $105–109B and EPS to $9.55 ± $0.25; Q3 revenue was $26.5–27.5B and EPS $2.45 ± $0.10.NarrativeAI demand was no longer disputed; the key question became how much low-margin scale could lift absolute earnings.
FY2026 Q2Full analysis→
4
29 May 2025

FY2026 Q1

GuidanceMixed / newly framedEnvironmentimproving

Record AI orders and backlog strengthened the demand thesis, but EPS, recognized AI revenue and gross margin disappointed, producing a muted reaction.

GuidanceQ2 revenue was $28.5–29.5B with about $7B of AI-server revenue; FY2026 revenue stayed $101–105B, EPS moved to $9.40 from $9.30 and AI revenue remained at least $15B.NarrativeThe debate moved decisively from demand availability to deployment timing, working capital and profit conversion.
FY2026 Q1Full analysis→
3
27 Feb 2025

FY2025 Q4

GuidanceMixed / newly framedEnvironmentmixed

A profitability beat was overshadowed by falling AI shipments, a soft Q1 guide and an FY2026 margin framework that made the earnings path more demanding.

GuidanceQ1 FY2026 revenue was $22.5–23.5B and EPS $1.65 ± $0.10; FY2026 revenue was $101–105B, EPS $9.30 ± $0.25 and AI-server revenue at least $15B.NarrativeManagement reframed the AI pause as a Hopper-to-Blackwell transition, raising the importance of order conversion and gross-margin control.
FY2025 Q4Full analysis→
2
26 Nov 2024

FY2025 Q3

GuidanceMixed / newly framedEnvironmentmixed

Improving ISG margin could not offset delayed Blackwell shipments, weak consumer PCs and a Q4 revenue guide nearly $1B below consensus.

GuidanceQ4 revenue was $24–25B versus Street near $25.4B, with EPS of $2.50 ± $0.10 and full-year EPS landing near $7.81.NarrativeThe debate shifted from AI demand to shipment timing and from a broad PC refresh to a slower commercial-led recovery.
FY2025 Q3Full analysis→
1
29 Aug 2024

FY2025 Q2

GuidanceMixed / newly framedEnvironmentmixed

A large AI-server and EPS beat established Dell as an AI share gainer, while a soft Q3 EPS guide and delayed PC refresh limited follow-through.

GuidanceFY2025 revenue rose to $95.5–98.5B and EPS to $7.80 ± $0.25; Q3 revenue of $24–25B and EPS of $2.00 ± $0.10 were modestly light.NarrativeDell gained credibility as an AI-infrastructure winner, but the earnings leverage and core-PC timing remained unresolved.
FY2025 Q2Full analysis→