Dell Technologies raised full-year FY27 Revenue guidance by $25 billion to $192.0 billion, while reporting quarterly revenue of $46,971 million, up 58% year over year. The higher outlook matters to investors because management also projects GAAP EPS of $24.37 and non-GAAP EPS of $25.50 for FY27.

Key Highlights

  • Infrastructure Solutions Group revenue rose 89% year over year to $31.8 billion, with Operating Income up 225% year over year to $4.8 billion.
  • Dell recorded $60.9 billion in AI server orders and ended the quarter with a $95 billion backlog.
  • Third-quarter guidance calls for $49.0 billion in revenue and GAAP diluted EPS of $6.10.

Dell Technologies Inc. (NYSE: DELL) posted quarterly revenue of $46,971 million ($47.0 billion), a 58% year-over-year increase for the three months ended July 31, 2026. GAAP Diluted Earnings per Share climbed 273% year over year to $6.34, while non-GAAP diluted EPS rose 203% to $7.04. GAAP Net Income reached $4,133 million, up 255% year over year, and non-GAAP net income increased 189% to $4,591 million.

AI Demand Expands Across Dell

AI-optimized server revenue reached $16.4 billion, doubling year over year. Dell recorded $60.9 billion in AI server orders and finished the quarter with a $95 billion backlog. Traditional servers and networking revenue increased 122% year over year to $10.5 billion. Storage revenue rose 26% year over year to $4.9 billion, while client solutions revenue grew 20% year over year. He said AI momentum is accelerating and the opportunity is widening across Dell’s portfolio.

ISG Drives Operating Growth

The Infrastructure Solutions Group generated $31.8 billion in revenue, up 89% year over year. Its operating income increased 225% year over year to $4.8 billion, representing 15.0% of ISG net revenue. AI-optimized servers contributed $16.4 billion of ISG revenue, up 100% year over year. Traditional servers and networking produced $10.5 billion, while storage contributed $4.9 billion. The Client Solutions Group posted $15.0 billion in revenue, an increase of 20% year over year. Commercial client revenue rose 22% year over year to $13.2 billion, and consumer revenue grew 7% year over year to $1.8 billion. CSG operating income increased 42% year over year to $1.1 billion, equal to 7.6% of CSG net revenue.

Profitability And Cash Flow

GAAP operating income increased 204% year over year to $5,385 million. Non-GAAP operating income rose 160% year over year to $5,929 million. Cash Flow from operations was $2.2 billion. Adjusted free cash flow rose 224% year over year to $8,149 million. David Kennedy, chief financial officer, said Dell returned a record $4.3 billion to shareholders during the quarter.

FY27 Outlook Moves Higher

Dell expects third-quarter revenue of $49.0 billion, representing an 81% year-over-year increase. The guidance includes GAAP diluted EPS of $6.10, up 168% year over year, and non-GAAP diluted EPS of $6.50, up 151%. AI-optimized server revenue guidance increased to $74.0 billion, up 200% year over year. Full-year GAAP diluted EPS guidance is $24.37, up 181% year over year. Non-GAAP diluted EPS guidance is $25.50, up 148% year over year.

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