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May 02
Dell Q1 2026 Earnings Report
Dell Technologies reported strong AI server demand and record operating cash flow in Q1 FY26.
Key Takeaways
Dell delivered $23.4B in revenue and generated $2.8B in operating cash flow, with notable growth in AI server orders and ISG revenue.
Revenue reached $23.4B, up from $22.2B in Q1 FY25.
Net income was $965M, slightly down from the prior year.
Non-GAAP EPS grew to $1.55, a 17% increase year over year.
Dell reported $12.1B in AI orders and a $14.4B backlog.
Dell
Dell
Dell Revenue by Segment
Forward Guidance
Dell expects strong performance in Q2 FY26 driven by AI infrastructure demand and robust commercial segment momentum.
Positive Outlook
- Q2 FY26 revenue expected between $28.5B and $29.5B.
- Q2 GAAP EPS forecasted at $1.85 at midpoint.
- Q2 Non-GAAP EPS forecasted at $2.25 at midpoint.
- Full-year revenue guidance between $101B and $105B.
- AI-driven infrastructure momentum expected to continue.
Challenges Ahead
- Consumer revenue declined 19% YoY in Q1 FY26.
- CSG operating income dropped 16% YoY.
- Storage segment growth was modest at 6%.
- Total net income declined 3% YoY.
- Gross margin slightly decreased from 21.8% to 21.1%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income