# Dell Technologies (DELL) Q1 FY2027 earnings

Results filed 2026-05-28 for the quarter ended 2026-05-01. Source page: https://earnings.opennash.com/companies/dell/2027-q1/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1571996/000157199626000021/0001571996-26-000021-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Net revenue | $43.8 billion | up 88% year over year | GAAP |
| Net income | $3,438 | up 256% from a year ago | GAAP |
| Diluted EPS | $5.24 | up 282% year over year | GAAP |
| Non-GAAP diluted EPS | $4.86 | up 214% | non-GAAP |
| Gross margin (% of net revenue) | 17.8% | down from 21.1% a year ago | GAAP |
| Operating margin (% of net revenue) | 8.3% | up from 5.0% a year ago | GAAP |
| Cash from operating activities | $4,081 | up 46% from a year ago | GAAP |
| Free cash flow | $3,118 | up 40% from a year ago | non-GAAP |
| Non-GAAP operating income | $4,235 | up 154% from a year ago | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| ISG: AI-optimized servers revenue | $16,132 | up 757% |
| ISG: Traditional servers and networking revenue | 8,543 | up 92% |
| ISG: Storage revenue | 4,334 | up 8% |
| ISG: Total net revenue | $29,009 | up 181% |
| ISG: Operating income | $3,055 | up 206% |
| CSG: Commercial revenue | $13,020 | up 18% |
| CSG: Consumer revenue | 1,589 | up 9% |
| CSG: Total net revenue | $14,609 | up 17% |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Q2 FY27 revenue | second quarter of fiscal 2027 | between $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 revenue | fiscal 2027 | between $165.0 billion and $169.0 billion |
| FY27 AI-optimized servers revenue | fiscal 2027 | roughly $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.

## 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.

## Slides and investor documents

- [Transcript](https://investors.delltechnologies.com/_assets/_4d1748beeaea6fadf081baed99b452df/delltechnologies/db/3595/34521/webcast_transcript/Q1_FY27_Transcript.pdf) (Company's official transcript)
- [Financial Tables](https://investors.delltechnologies.com/_assets/_4d1748beeaea6fadf081baed99b452df/delltechnologies/db/3595/34521/financial_tables/Q1_FY27_Financial_Tables.pdf) (Financial tables)
- [View reconciliation](https://d1io3yog0oux5.cloudfront.net/_7c72b567afcbaf2651f6b5321504d3ce/delltechnologies/db/3595/34521/financial_tables/Q1_FY27_Financial_Tables.pdf) (Financial tables)
- [Performance Review](https://investors.delltechnologies.com/_assets/_4d1748beeaea6fadf081baed99b452df/delltechnologies/db/3595/34521/performance_review/Q1_FY27_Performance_Review.pdf) (Document)