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Dell Technologies Inc.

Q1 FY26Technology Hardware, Storage and Peripherals

Dell Technologies Inc. Q1 FY26 Results — Earnings Call Analysis

Q1 FY26 earnings call: what management said on revenue, margins and capex.

Price₹317

Market cap₹2.1L Cr

P/E35.1

Updated29 May 2026

Read4 min read

Dell Technologies Inc. Q1 FY26 key numbers

Revenue: AI revenue expected to reach $50 billion in FY ’27, about 100% growth year-over-year.

As stated in Dell Technologies Inc.'s Q1 FY26 earnings call transcript · published 29 May 2026. Reported figures, not investment advice.

The short version

- AI revenue expected to reach $50 billion in FY ’27, about 100% growth year-over-year. - FY ’27 guidance expects 23% revenue growth at the midpoint and 25% EPS growth, driven by AI business expansion and improved profitability across the portfolio.

From Dell Technologies Inc.'s Q1 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Good growth

AI revenue expected to reach $50 billion in FY ’27, about 100% growth year-over-year.
ISG (Infrastructure Solutions Group) projected to grow mid-40s percentage driven by AI growth.
Traditional servers and storage expected to grow mid-single digits, with traditional servers weighted toward the first half of the year.
CSG (Client Solutions Group) anticipated to grow roughly 1% for the full year, with about 2% growth in Q1.
AI server shipments showed 150% YoY growth to $25 billion in FY ’26 with a backlog of $43 billion entering FY ’27.
Traditional server units expected to decrease in FY ’27, but total revenue supported by higher ASPs and richer mixes of 16th and 17th generation servers.

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Profitability & Margins

FY ’27 guidance expects 23% revenue growth at the midpoint and 25% EPS growth, driven by AI business expansion and improved profitability across the portfolio.
Operating income expected to grow approximately 18%, with ISG and CSG operating income rates at the lower end of the long-term framework due to AI mix shift and CSG margin dynamics.
Q1 FY ’27 revenue expected at $34.7B to $35.7B (up 51%), with EPS of $2.90, up 87% at midpoint.
AI backlog of $43B supports sustained growth and mid-single-digit operating margins in AI servers.
Mid-single-digit operating margins expected in AI business alongside stable or improving profitability in traditional servers and storage.

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Capital Expenditure Plans

Capex planned

The company is heavily investing in AI infrastructure, demonstrated by a $43 billion AI backlog and plans for $50 billion AI revenue in FY '27.
Investments focus on engineering performance, time-to-market optimization for AI workloads, deployment and installation speed, and lifecycle support.
Continued modernization of traditional servers and storage is a priority, with upgrades delivering consolidation and efficiency benefits.
Increased investment in Dell IP storage portfolio, including PowerStore, PowerMax, PowerScale, and new solutions like Lightning file system (expected general availability in first half of FY '27).
Ongoing supply chain enhancements, leveraging scale and supplier relationships to secure supply amid tight component and memory markets.

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Fundraising & Capital Structure

Dell highlights strong cash flow generation, with $4.7 billion cash flow from operations in Q4 FY ’26 and $11.2 billion for the full year.
The company returned $7.5 billion to shareholders through share repurchases (54 million shares) and dividends.
Board approved a $10 billion increase in share repurchase authorization, indicating confidence in existing cash flow rather than raising new capital.

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Order Book & Pipeline

Order book rising

The current AI server backlog stands at $43 billion, predominantly Grace Blackwell, with no Vera Rubin included.
The 5-quarter pipeline is growing, comprising both Grace Blackwell and Blackwell, with increasing x86 Blackwell demand, driven by enterprise deployment.
AI orders reached $64.1 billion for the full year, with a broadening customer base surpassing 4,000, including CSPs, sovereigns, neoclouds, and enterprise customers.
The company converted $34.1 billion of AI orders while growing the 5-quarter pipeline, indicating sustained momentum and demand outpacing supply.

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What the Q1 FY26 call signalled

3 of 4 strong

RevenueGood growth

MarginMargins steady

CapexCapex planned

Order bookOrder book rising

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Frequently Asked Questions

What were Dell Technologies Inc. Q1 FY26 results?

- AI revenue expected to reach $50 billion in FY ’27, about 100% growth year-over-year. - FY ’27 guidance expects 23% revenue growth at the midpoint and 25% EPS growth, driven by AI business expansion and improved profitability across the portfolio.

What is Dell Technologies Inc. share price analysis?

Dell Technologies Inc. currently shows a moderate growth signal based on ranking data. The stock trades at a P/E of 35.1 with a market cap of $205,946. Investors should review the full earnings analysis for detailed insights.

Is Dell Technologies Inc. planning capital expenditure?

- The company is heavily investing in AI infrastructure, demonstrated by a $43 billion AI backlog and plans for $50 billion AI revenue in FY '27.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.