Dell Technologies Inc.

What they do

Dell Technologies designs and sells infrastructure solutions—AI-optimized servers, traditional servers, networking, and storage—and client devices including PCs, notebooks, desktops, and workstations. It operates globally in over 170 countries, offering products through direct sales and channel partners, with flexible acquisition models including leases, subscriptions, and as-a-Service. The company has two reportable segments: ISG and CSG, plus Corporate and other which includes VMware Resale.

Revenue drivers

• AI-optimized servers — Revenue of $16.1 billion in Q1 FY27, up 757% year over year, representing the largest and fastest-growing ISG category; management expects ~$60 billion for full-year FY27.
• Traditional servers and networking — Revenue of $8.5 billion in Q1 FY27, up 92% year over year, including general-purpose and mission-critical workloads plus networking switches and optics.
• Storage — Revenue of $4.3 billion in Q1 FY27, up 8% year over year, spanning primary, unstructured, and data protection offerings across all-flash, software-defined, and hyper-converged platforms.
• Client Solutions Group (CSG) — Revenue of $14.6 billion in Q1 FY27, up 17% year over year; commercial client revenue of $13.0 billion and consumer revenue of $1.6 billion.

Recent performance

For Q1 FY27 (ended May 1, 2026), Dell reported record revenue of $43.8 billion, up 88% year over year, with GAAP diluted EPS of $5.24 (up 282%) and non-GAAP diluted EPS of $4.86 (up 214%). Cash flow from operations was $4.1 billion and adjusted free cash flow was $3.2 billion. ISG revenue grew 181% to $29.0 billion, while CSG revenue grew 17% to $14.6 billion. The company returned $2.1 billion to shareholders via repurchases and dividends.

Strategy

Dell is executing a strategy to extend leadership in AI-optimized infrastructure, leveraging its full-stack portfolio from PCs to compute and storage. Management highlights innovation pace, supply chain strength, and broad partner ecosystem to capture AI demand. The company offers customers flexibility in acquisition models, including payment and consumption solutions, to drive adoption. It raised its full-year FY27 AI server revenue expectation to $60 billion, reflecting continued AI momentum.

Risks

• Adverse global economic conditions — Weak or unstable economic conditions could reduce customer demand and lead to postponed spending on Dell's products and services.
• Trade policies and tariffs — Increased tariffs or trade restrictions could raise manufacturing costs, reduce demand, and limit sales in certain markets.
• Supply chain disruptions — Product shortages, delays, or insolvency of key suppliers could harm operations and increase costs.
• Geopolitical volatility — Military conflicts, terrorism, or extreme weather could disrupt operations and negatively impact revenue and profitability.

Outlook

For Q2 FY27, management expects revenue between $44.0 billion and $45.0 billion, up 49% year over year at the midpoint. For full-year FY27, revenue is expected between $165.0 billion and $169.0 billion, up 47% at the midpoint, with AI-optimized servers revenue of roughly $60 billion. GAAP diluted EPS for full-year is expected at $17.31 midpoint (up 99%) and non-GAAP at $17.90 (up 74%).