EarningsQ2 2027 Earnings Report
MX:DELLC Q2 2027 EPS Results
Actual EPS$126.58
Consensus EPS$88.30
Beat/MissBeat by +$38.28
One Year Ago EPS$41.71
MX:DELLC Q2 2027 Revenue Results
Actual Revenue$843.52B
Expected Revenue$807.14B
Beat/MissBeat by +$36.38B
YoY Revenue Growth+56.72%
Earnings Announcement Details
QuarterQ2 2027
Date09/01/2026
TimeAfter Close
Conference CallTuesday, September 1, 2026
MX:DELLC Upcoming Earnings
Dell Technologies's next earnings date is estimated for December 1, 2026, based on past reporting schedules.
Q2 2027 Earnings Call Audio
MX:DELLC Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly optimistic. Dell reported record revenue, earnings, AI orders, backlog, cash flow and shareholder returns, broad growth across infrastructure, storage and PCs, significant share gains, and materially raised full-year guidance. The main challenges were widespread supply constraints, pricing and component-cost inflation, some customer purchasing deferrals, early-stage commercialization of Lightning, and expected moderation in CSG operating margin. Highlights significantly outweighed lowlights.Company Guidance
Record Revenue and Earnings
Fiscal Q2 revenue reached a record $47 billion, up 58% year over year, while diluted earnings per share reached a record $7.04, up 203%.
Strong Profitability and Operating Leverage
Gross margin dollars grew 78% to $9.9 billion, gross margin rate was 21.1%, operating income grew 160% to $5.9 billion, and net income increased 189% to $4.6 billion. Operating expenses increased 22% to $4 billion but declined 250 basis points to 8.5% of revenue, primarily reflecting scale and operating leverage.
Record AI Orders, Revenue and Backlog
AI server orders reached a quarterly record of $60.9 billion, AI server revenue was $16.4 billion, and ending AI backlog reached a record $95 billion. Over the past 12 months, the company booked $131.7 billion of AI server orders, while its pipeline remained multiples of backlog.
Expansion of the AI Customer Base
The Dell AI Factory customer count surpassed 6,500, with 3,300 customers added in the last three quarters. Demand broadened across Neoclouds, sovereign customers, enterprises and high-frequency trading customers, while enterprise customers, repeat buyers and the enterprise pipeline all grew quarter over quarter and year over year.
First Shipment of NVIDIA Vera Rubin Rack Systems
Dell became the first company to ship rack systems engineered on the NVIDIA Vera Rubin platform, highlighting its engineering, design, deployment and global support capabilities.
Exceptional Traditional Server Growth and Share Gains
Traditional server and networking revenue increased 122% to $10.5 billion, supported by data-center modernization, consolidation, security and resiliency requirements, and growing CPU demand for AI and agentic workloads. Dell gained more than 10 points of traditional server share over the past two quarters and expects to gain share again in the current quarter.
Durable Server Refresh Opportunity
The company said the installed base still includes 1.2 million assets that are 14th generation or older. Dell expects modernization and consolidation into 17th- and 18th-generation servers to continue, with 18th-generation systems expected to begin shipping the following month.
Storage Returned to Growth with Share Gains
Storage revenue increased 26% to $4.9 billion, with strong demand for Dell IP storage products, improved storage profitability and demand growth above the market for six consecutive quarters. PowerStore delivered double-digit demand growth for the ninth consecutive quarter.
Broad Storage Portfolio Momentum
PowerFlex, PowerStore, PowerProtect and PowerVault all recorded strong growth. PowerScale and ObjectScale drove another exceptional quarter in unstructured storage, which grew at double digits or better for three consecutive quarters. The company also reported continued multi-quarter growth across Data Domain, all-flash arrays and other Dell IP storage products.
AI-Driven Storage Opportunity
Dell reported early incremental storage demand from AI workloads as customers prepare, manage, protect and move larger data volumes. The company also cited new storage demand associated with agent-created files, logs, traces, KV cache, physical AI, manufacturing, IoT sensors and robotics.
Strong Client Solutions Group Performance
CSG revenue grew 20% to $15 billion. Commercial revenue increased 22% to $13.2 billion, marking the eighth consecutive quarter of growth and the tenth consecutive quarter of demand growth. Consumer revenue increased 7% to $1.8 billion, the fourth consecutive quarter of demand growth.
CSG Profitability and Scale Benefits
CSG operating income was $1.1 billion, or 7.6% of revenue, supported by pricing discipline and scale. Dell described CSG as an integral, capitally efficient source of cash generation that supports supply-chain scale, the end-to-end portfolio, growth investments and shareholder returns.
Record Cash Flow and Shareholder Returns
Cash flow from operations was $2.2 billion and adjusted free cash flow was $8.1 billion. Dell returned a quarterly record $4.3 billion to shareholders, including repurchasing 9.5 million shares at an average price of $401 per share and paying an approximately $0.63 per-share dividend.
Healthy Balance Sheet and Credit Position
Dell ended the quarter with $14.2 billion in cash and investments, up $0.2 billion sequentially, and a core leverage ratio of 0.8x. The company cited positive credit-rating actions during the quarter and said its cash generation and balance sheet provide flexibility to invest and return capital.
Raised Second-Half Outlook
Management said it expects the second half to be stronger and raised expectations across every line of business. For Q3, revenue is expected to be $49 billion at the midpoint, up roughly 80% year over year, with ISG growth of roughly 145%, including $19 billion of AI server revenue, and CSG growth of roughly 15%.
Raised Full-Year Guidance
Full-year revenue guidance was raised by $25 billion to $192 billion at the midpoint, up roughly 70%, while diluted non-GAAP EPS guidance is $25.50, up approximately 150% at the midpoint. ISG is expected to grow roughly 120%, AI server revenue is expected to increase 3x year over year to $74 billion, traditional servers are expected to grow just over 100%, storage is expected to grow in the mid-teens and CSG revenue is expected to grow in the mid-teens.
Record Operating Expense Efficiency
Full-year operating expenses are expected to be approximately 8% of revenue, described as the lowest level in Dell's 42-year history. Operating income is expected to grow approximately 120%, with more than 2 points of year-over-year rate improvement.
Strong First-Half Results
For the first two quarters, revenue was $90.8 billion, up 71%, EPS increased 208% to $11.90, cash flow from operations reached a record $6.3 billion, and shareholder returns totaled a record $6.3 billion.
Continued Investment in Infrastructure Capabilities
Dell said it is continuing to expand AI platforms and capabilities, engineering and deployment expertise, global supply-chain capacity, data-management capabilities and its data automation platform to address increasingly complex customer workloads.
MX:DELLC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed