Dell reports record Q1 FY27 revenue of $43.8B, boosts AI server forecast to $60B

DBT Bureau

Pune, 31 May 2026

Dell Technologies reported 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%

First Quarter Fiscal 2027 Financial Results