Dell Technologies Delivers First Quarter Fiscal 2027 Financial Results

Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2027 first quarter and provides guidance for its fiscal 2027-second quarter and full year.

First-Quarter Summary

• Record revenue of $43.8 billion, up 88% year-over-year
• Record diluted earnings per share (EPS) of $5.24, up 282% year over year, and record non-GAAP diluted EPS of $4.86, up 214%
• Record first-quarter cash flow from operations of $4.1 billion

“Our record Q1 performance reflects strong in-quarter demand, as well as our pace of innovation across the full stack of PCs, compute and storage,” said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. “We booked $24.4 billion in AI orders and recognized $16.1 billion of AI server revenue. We’re increasing our AI server revenue expectations for FY27 to $60 billion, which only goes to show the AI opportunity shows no signs of slowing.”

“Execution was exceptionally strong across the business – from supply chain to sales to pricing – driving record revenue of $43.8 billion, record EPS, record Q1 cash flow of $4.1 billion and continued strong shareholder returns of $2.1 billion,” said David Kennedy, chief financial officer, Dell Technologies. “We entered FY27 with clear momentum, raising our full-year revenue outlook to $167 billion at the midpoint, up nearly 50% year over year.”

Infrastructure Solutions Group (ISG)

• Record revenue: $29.0 billion, up 181% year-over-year
• Record AI-Optimized Servers revenue: $16.1 billion, up 757% year-over-year
• Record Traditional Servers and Networking revenue: $8.5 billion, up 92% year-over-year
• Record first-quarter Storage revenue: $4.3 billion, up 8% year-over-year
• Record operating income: $3.1 billion, up 206% year over year

Client Solutions Group (CSG)

• Revenue: $14.6 billion, up 17% year-over-year
• Record Commercial Client revenue: $13.0 billion, up 18% year-over-year
• Consumer revenue: $1.6 billion, up 9% year-over-year
• Record operating income: $1.2 billion, up 79% year over year

Capital Return
Dell Technologies returned $2.1 billion to shareholders in the first quarter through share repurchases and dividends.

Guidance Summary
Second-quarter FY27 revenue expected between $44.0 billion and $45.0 billion, up 49% year over year at the midpoint of $44.5 billion
Second-quarter FY27 GAAP diluted EPS expected to be $4.48 at the midpoint, up 164% year over year, and non-GAAP diluted EPS to be $4.80 at the midpoint, up 107%
Full-year FY27 revenue expected between $165.0 billion and $169.0 billion, up 47% year over year at the midpoint of $167.0 billion
Full-year AI-Optimized Servers revenue expected to be roughly $60 billion, up 144% year over year
Full-year FY27 GAAP diluted EPS expected to be $17.31 at the midpoint, up 99% year over year, and non-GAAP diluted EPS to be $17.90 at the midpoint, up 74%