OpenNashEarnings

Dell Technologies (DELL) · Consumer Technology

Dell Technologies Q1 FY2027 earnings: summary, key numbers & outlook

Results filed 28 May 2026 · Quarter ended 1 May 2026

Official transcript (PDF) ↗Press release ↗Investor relations ↗

Summaries and transcripts are machine-generated and can contain errors.

In brief

Dell Technologies reported record revenue of $43.8 billion, up 88% year over year, with record diluted EPS of $5.24 and record non-GAAP diluted EPS of $4.86.

Dell's first-quarter revenue was $43.8 billion, up 88% from a year ago, driven by AI servers. Dell recognized $16.1 billion of AI-optimized server revenue and booked $24.4 billion in AI orders. Diluted EPS was $5.24, up 282%. Cash from operations was $4.1 billion, and Dell returned $2.1 billion to shareholders. Gross margin fell to 17.8% from 21.1% because of the shift toward lower-margin servers.

Management raised its full-year revenue outlook to between $165.0 billion and $169.0 billion and now expects roughly $60 billion of AI-optimized server revenue. For the second quarter it expects revenue of $44.0 billion to $45.0 billion. The main tension is margin: AI servers lift sales sharply but carry thinner margins. The release also lists supplier reliance and AI demand among its risks.

Key numbers

Net revenue · GAAP
$43.8 billion

up 88% year over year

Net income · GAAP
$3.4B

up 256% from a year ago

Diluted EPS · GAAP
$5.24

up 282% year over year

Non-GAAP diluted EPS · non-GAAP
$4.86

up 214%

Gross margin (% of net revenue) · GAAP
17.8%

down from 21.1% a year ago

Operating margin (% of net revenue) · GAAP
8.3%

up from 5.0% a year ago

Cash from operating activities · GAAP
$4.1B

up 46% from a year ago

Free cash flow · non-GAAP
$3.1B

up 40% from a year ago

Segment or metricValueChange
ISG: AI-optimized servers revenue$16.1Bup 757%
ISG: Traditional servers and networking revenue$8.5Bup 92%
ISG: Storage revenue$4.3Bup 8%
ISG: Total net revenue$29.0Bup 181%
ISG: Operating income$3.1Bup 206%
CSG: Commercial revenue$13.0Bup 18%
CSG: Consumer revenue$1.6Bup 9%
CSG: Total net revenue$14.6Bup 17%
Where each number comes from
  • Net revenue: “Record revenue of $43.8 billion, up 88% year over year”
  • Net income: “Net income | $3,438 | $965 | 256% Change in cash from operating activities | $4,081 | $2,796 | 46%”
  • Diluted EPS: “Record diluted earnings per share (EPS) of $5.24, up 282% year over year, and record non-GAAP diluted EPS of $4.86, up 214%”
  • Non-GAAP diluted EPS: “Record diluted earnings per share (EPS) of $5.24, up 282% year over year, and record non-GAAP diluted EPS of $4.86, up 214%”
  • Gross margin (% of net revenue): “Percentage of Total Net Revenue: Gross margin | 17.8% | 21.1% Selling, general, and administrative | 7.3% | 12.6%”
  • Operating margin (% of net revenue): “Operating expenses | 9.5% | 16.1% Operating income | 8.3% | 5.0% Income before income taxes | 9.0% | 4.6%”
  • Cash from operating activities: “Change in cash from operating activities | $4,081 | $2,796 | 46%”
  • Free cash flow: “Capital expenditures and capitalized software development costs, net (a) | (963) | (568) Free cash flow | $3,118 | $2,228 | 40%”
  • ISG: AI-optimized servers revenue: “AI-optimized servers | $16,132 | $1,882 | 757% Traditional servers and networking | 8,543 | 4,439 | 92%”
  • ISG: Traditional servers and networking revenue: “AI-optimized servers | $16,132 | $1,882 | 757% Traditional servers and networking | 8,543 | 4,439 | 92%”
  • ISG: Storage revenue: “Storage | 4,334 | 3,996 | 8% Total ISG net revenue | $29,009 | $10,317 | 181%”
  • ISG: Total net revenue: “Storage | 4,334 | 3,996 | 8% Total ISG net revenue | $29,009 | $10,317 | 181%”
  • ISG: Operating income: “Operating income: ISG operating income | $3,055 | $998 | 206% % of ISG net revenue | 10.5% | 9.7%”
  • CSG: Commercial revenue: “Net revenue: Commercial | $13,020 | $11,046 | 18% Consumer | 1,589 | 1,463 | 9% Total CSG net revenue | $14,609 | $12,509 | 17%”
  • CSG: Consumer revenue: “Net revenue: Commercial | $13,020 | $11,046 | 18% Consumer | 1,589 | 1,463 | 9% Total CSG net revenue | $14,609 | $12,509 | 17%”
  • CSG: Total net revenue: “Net revenue: Commercial | $13,020 | $11,046 | 18% Consumer | 1,589 | 1,463 | 9% Total CSG net revenue | $14,609 | $12,509 | 17%”

Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.

From the filingQ1 FY2027vs year agovs last quarter
Revenue$43.8B+87.5%+31.3%
Operating income$3.7B+213.8%+18.2%
Net income$3.4B+256.3%+52.2%
Diluted EPS$5.24+282.5%—
Free cash flow$3.1B+39.9%−21.1%
Gross margin17.8%−3.3 pts−2.4 pts
Operating margin8.3%+3.3 pts−1.0 pts

Calculated by code from XBRL, not by the model.

Outlook

MetricPeriodOutlook
Q2 FY27 revenuesecond quarter of fiscal 2027between $44.0 billion and $45.0 billion
Q2 FY27 GAAP diluted EPS (midpoint)second quarter of fiscal 2027$4.48
Q2 FY27 non-GAAP diluted EPS (midpoint)second quarter of fiscal 2027$4.80
FY27 revenuefiscal 2027between $165.0 billion and $169.0 billion
FY27 AI-optimized servers revenuefiscal 2027roughly $60 billion
FY27 GAAP diluted EPS (midpoint)fiscal 2027$17.31
FY27 non-GAAP diluted EPS (midpoint)fiscal 2027$17.90

Key takeaways

  1. AI servers drove the quarter's growth

    AI-optimized servers revenue was $16,132 million, up 757%, and ISG revenue of $29.0 billion was up 181%. Dell booked $24.4 billion in AI orders.

  2. Gross margin fell as mix shifted

    GAAP gross margin was 17.8% versus 21.1% a year ago, and non-GAAP gross margin was 18.1% versus 21.6%. Operating expenses fell to 9.5% of revenue from 16.1%, so operating margin still rose to 8.3%.

  3. Full-year outlook raised to $167.0 billion midpoint

    Dell now expects FY27 revenue between $165.0 billion and $169.0 billion, up 47% at the midpoint. It expects roughly $60 billion of AI-optimized servers revenue.

  4. PCs grew too, led by commercial clients

    CSG revenue was $14.6 billion, up 17%, with Commercial at $13.0 billion, up 18%, and Consumer at $1.6 billion, up 9%. CSG operating income was $1.2 billion, up 79%.

  5. Cash generation strong but working capital absorbed

    Cash from operating activities was $4.1 billion and free cash flow was $3,118 million. Accounts receivable rose to $25,854 million from $17,585 million, and inventories rose to $15,052 million from $10,437 million.

Charts

Revenue$43.8B+87.5% y/yQ1 FY27
Q3 FY25: $24.4BQ3 25$24.4BQ4 FY25: $23.9BQ4 25$23.9BQ1 FY26: $23.4BQ1 26$23.4BQ2 FY26: $29.8BQ2 26$29.8BQ3 FY26: $27.0BQ3 26$27.0BQ4 FY26: $33.4B (worked out from the annual figure)Q4 26$33.4BQ1 FY27: $43.8BQ1 27$43.8BQ2 FY27: $47.0BQ2 27$47.0B

Fourth quarter worked out from the annual figure.

Data
Q3 FY25$24.4B
Q4 FY25$23.9B
Q1 FY26$23.4B
Q2 FY26$29.8B
Q3 FY26$27.0B
Q4 FY26$33.4B *
Q1 FY27$43.8B
Q2 FY27$47.0B
Diluted EPS (GAAP)$5.24+282.5% y/yQ1 FY27
Q3 FY25: $1.64Q3 25$1.64Q4 FY25: $2.15Q4 25$2.15Q1 FY26: $1.37Q1 26$1.37Q2 FY26: $1.70Q2 26$1.70Q3 FY26: $2.28Q3 26$2.28Q1 FY27: $5.24Q1 27$5.24Q2 FY27: $6.34Q2 27$6.34
Data
Q3 FY25$1.64
Q4 FY25$2.15
Q1 FY26$1.37
Q2 FY26$1.70
Q3 FY26$2.28
Q1 FY27$5.24
Q2 FY27$6.34

Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.

Operating margin8.3%+3.3 pts y/yQ1 FY27
Q3 FY25: 7.1%Q3 257.1%Q4 FY25: 9.0%Q4 259.0%Q1 FY26: 5.0%Q1 265.0%Q2 FY26: 6.0%Q2 266.0%Q3 FY26: 7.8%Q3 267.8%Q4 FY26: 9.3%Q4 269.3%Q1 FY27: 8.3%Q1 278.3%Q2 FY27: 11.5%Q2 2711.5%
Data
Q3 FY257.1%
Q4 FY259.0%
Q1 FY265.0%
Q2 FY266.0%
Q3 FY267.8%
Q4 FY269.3%
Q1 FY278.3%
Q2 FY2711.5%
Free cash flow$3.1B+39.9% y/yQ1 FY27
Q3 FY25: $914.0MQ3 25$914.0MQ4 FY25: -$150.0MQ4 25-$150.0MQ1 FY26: $2.2BQ1 26$2.2BQ2 FY26: $1.9BQ2 26$1.9BQ3 FY26: $503.0MQ3 26$503.0MQ4 FY26: $4.0BQ4 26$4.0BQ1 FY27: $3.1BQ1 27$3.1BQ2 FY27: $986.0MQ2 27$986.0M
Data
Q3 FY25$914.0M
Q4 FY25-$150.0M
Q1 FY26$2.2B
Q2 FY26$1.9B
Q3 FY26$503.0M
Q4 FY26$4.0B
Q1 FY27$3.1B
Q2 FY27$986.0M

Operating cash flow minus capital expenditure, from cash flow statements.

Questions

What were Dell's headline results for Q1 FY2027?

Revenue was a record $43.8 billion, up 88% year over year. Diluted EPS was $5.24 (up 282%) and non-GAAP diluted EPS was $4.86 (up 214%).

How big is Dell's AI server business now?

AI-optimized servers revenue was $16.1 billion in the quarter, up 757% year over year, and Dell booked $24.4 billion in AI orders. Dell now expects roughly $60 billion of AI-optimized servers revenue for FY27.

What is Dell guiding for the second quarter and full year?

For Q2 FY27, Dell expects revenue of $44.0 billion to $45.0 billion and non-GAAP diluted EPS of $4.80 at the midpoint. For FY27 it expects revenue of $165.0 billion to $169.0 billion and non-GAAP diluted EPS of $17.90 at the midpoint.

Did margins improve or decline?

GAAP gross margin fell to 17.8% from 21.1% a year ago. Operating margin rose to 8.3% from 5.0% because operating expenses dropped as a share of revenue.

How did Dell's PC business perform and how much cash did it return?

Client Solutions Group revenue was $14.6 billion, up 17%, with operating income of $1.2 billion, up 79%. Dell returned $2.1 billion to shareholders through repurchases and dividends.

Documents

From Dell Technologies investor relations

SEC filing