Dell Technologies Inc. (NYSE: DELL) Q1 2026 Earnings Call | AI Server Demand | 5/30/2025

8 days ago

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Earnings Calls

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Dell Technologies reported Q1 FY26 revenue of $23.4 billion, up 5%, with Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) growing 8% combined. Non-GAAP EPS rose 17% to $1.55, driven by strong profitability and record Q1 cash flow from operations of $2.8 billion. ISG revenue reached $10.3 billion (up 12%), led by a record $6.3 billion in server and networking (up 16%), with AI server orders at $12.1 billion and shipments of $1.8 billion, leaving a $14.4 billion backlog. Storage revenue grew 6%, with strong demand for Dell IP products like PowerStore. CSG revenue was $12.5 billion (up 5%), with commercial PCs up 9% but consumer PCs down 19%. Operating income increased 10% to $1.7 billion, though gross margin dipped to 21.6% due to competitive pricing in CSG and geographic mix in servers. Dell returned $2.4 billion to shareholders via share repurchases and dividends. Q2 guidance projects revenue of $28.5-$29.5 billion (up 16% at midpoint), with $7 billion in AI server shipments, and full-year FY26 revenue guidance reiterated at $101-$105 billion (up 8%), with EPS raised to $9.40 ± $0.25 (up 15%). Despite macro uncertainties and a Q1 slowdown in traditional servers and storage, Dell is capitalizing on AI demand, innovating with AI PCs and infrastructure, and leveraging its supply chain to navigate tariffs and drive growth.

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Dell Technologies Inc. (NYSE: DELL) delivered record results for Q1 2026, driven by surging demand for AI-optimized servers and robust growth in its Infrastructure Solutions Group. For the quarter ended May 2, 2025, revenue reached $22.24 billion, up 6% year-over-year, with Infrastructure Solutions revenue jumping 22% to $10.2 billion. AI server orders soared to $2.6 billion—more than doubling sequentially—while backlog for AI servers exceeded $3.8 billion, underscoring Dell’s leadership in the enterprise AI market. Operating income rose 27% to $1.5 billion, and non-GAAP diluted EPS came in at $1.27, beating analyst expectations. The company also generated $1.6 billion in operating cash flow and returned $1.1 billion to shareholders through dividends and buybacks. Despite some margin pressure in the Client Solutions Group and cautious guidance for Q2, Dell reaffirmed its full-year outlook, projecting continued growth fueled by AI infrastructure demand and strategic investments in innovation. About Inside Ticker: For more expert analysis and real-time updates on Dell Technologies Inc. (NYSE: DELL) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies.

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