Dell Technologies (DELL) Q1 2027 earnings summary

Executive summary

• Achieved record Q1 revenue of $43.8 billion, up 88% year-over-year, driven by explosive growth in AI-optimized servers, strong commercial PC sales, and innovation across all segments.

• Diluted EPS reached $5.24, up 282% year-over-year; non-GAAP diluted EPS was $4.86, up 214%.

• AI server orders totaled $24.4 billion, with $16.1 billion in revenue and a record $51.3 billion backlog.

• Cash flow from operations hit a record $4.1 billion, supporting continued investment and $2.1 billion returned to shareholders via share repurchases and dividends.

Financial highlights

• Gross margin was $7.8 billion (17.8% of revenue), with non-GAAP gross margin at $7.95 billion (18.1%).

• Operating income rose to $3.7 billion, up 214% year-over-year; net income was $3.4 billion, up 256%.

• Free cash flow reached $3.1 billion, with adjusted free cash flow at $3.17 billion.

• Ended the quarter with $14.1 billion in cash and investments.

Outlook and guidance

• Full-year FY27 revenue guidance raised to $165–$169 billion, up nearly 50% at midpoint; non-GAAP diluted EPS expected at $17.90, up 74%.

• Q2 FY27 revenue expected at $44–$45 billion, up ~50% year-over-year; non-GAAP diluted EPS at $4.80 midpoint.

• AI-optimized server revenue for FY27 expected to reach $60 billion, up 144% year-over-year.

• ISG revenue growth projected at ~80% year-over-year; CSG revenue growth forecasted at low-teens.