Revenue of $23.93B missed by roughly 3%, while non-GAAP EPS of $2.68 beat by about 6%. AI-server shipments fell 28% sequentially to $2.1B and orders fell to $1.7B, although late-February backlog approached $9B. Storage revenue of $4.72B was modestly ahead, while CSG remained weak.
[AS-035]Q1 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.
[AS-035]The full-year framework implied strong AI acceleration but about 100bp of gross-margin pressure and a low starting-quarter EPS base.
[AS-035]The stock focused on the AI shipment pause, soft Q1 guide and margin dilution rather than the reported EPS beat.
[MKT-001]Revenue of $23.93B missed by roughly 3%, while non-GAAP EPS of $2.68 beat by about 6%. AI-server shipments fell 28% sequentially to $2.1B and orders fell to $1.7B, although late-February backlog approached $9B. Storage revenue of $4.72B was modestly ahead, while CSG remained weak.
Revenue of $23.93B missed by roughly 3%, while non-GAAP EPS of $2.68 beat by about 6%.
AI-server shipments fell 28% sequentially to $2.1B and orders fell to $1.7B, although late-February backlog approached $9B.
Storage revenue of $4.72B was modestly ahead, while CSG remained weak.
Q1 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.
| Metric | Prior | Latest | Consensus | Delta | Status | Reason / implication |
|---|---|---|---|---|---|---|
| FY2026 revenue | No prior formal guide | $101–105B | Not consistently available | New | New | AI growth and core recoveryHigh-single-digit growth at midpoint |
| FY2026 non-GAAP EPS | No prior formal guide | $9.30 ± $0.25 | Not consistently available | New | New | Scale and buybacksDouble-digit growth despite mix pressure |
| FY2026 AI-server revenue | FY2025 shipments about $9.8B | At least $15B | Not consistently available | Large increase | New | Backlog conversionMore than 50% growth |
| Q1 revenue | Not previously guided | $22.5–23.5B | Above $23B | New | New | Blackwell timingModestly below Street |
| Q1 non-GAAP EPS | Not previously guided | $1.65 ± $0.10 | Above midpoint | New | New | Low-margin AI mixBelow Street |
The environment supported a strong FY2026 AI shipment target but kept gross margin, CSG profitability and operating cash flow under pressure.
The full-year framework implied strong AI acceleration but about 100bp of gross-margin pressure and a low starting-quarter EPS base.
The stock focused on the AI shipment pause, soft Q1 guide and margin dilution rather than the reported EPS beat.
The shares fell about 4.7% on the first full session.
| Window | Stock | vs benchmark | vs peers |
|---|---|---|---|
| 1D | -4.7% | -6.3% | -1.2% |
| 2D | -11.4% | -11.2% | -4.7% |
| 5D | -13.7% | -11.6% | -4.2% |
A post-quarter AI backlog surge and better storage mix offset weak consumer pricing and heavy working-capital investment.
Q4 orders $1.7bn (−53% q/q), backlog $4.1bn; post-quarter backlog ~$9bn on xAI; pipeline still up q/q
Q4: growth trajectory continues, up double digits, 5 quarters of YoY demand
Q4: storage +5%, 2nd q of growth, "very strong profitability" from Dell-IP portfolio
Q4: "modest decline in input costs" expected in 1H FY26; tariffs treated as input cost
Q4: CCC −31 days, inventory $6.7bn; heavy AI-inventory investment
Q4: consumer −12%, "elevating levels of discounting"
Q4: "large opportunities…very competitive," ODMs seen; share-take via Dell-IP storage
Consensus snapshots are reconstructed from contemporaneous broker notes; the flattened AlphaSense export does not preserve stable document URLs.
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