Dell Technologies (DELL) Q1 2027 earnings summary

Executive summary

• Achieved record Q1 revenue of $43.8 billion, up 88% year-over-year, with broad-based growth across all business lines and segments, driven by strong demand and innovation in AI, servers, storage, and PCs.

• 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, reflecting unprecedented demand.

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

Financial highlights

• Q1 revenue: $43.8 billion (+88% Y/Y); operating income: $3.7 billion (+214% Y/Y); net income: $3.44 billion (+256% Y/Y).

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

• Adjusted free cash flow reached $3.17 billion; ended the quarter with $14.1 billion in cash and investments.

• Returned $2.1 billion to shareholders via buybacks and dividends.

Outlook and guidance

• Q2 revenue expected at $44–$45 billion, up ~50% year-over-year; ISG to grow ~75%, CSG ~20%.

• Full-year FY27 revenue guidance raised to $165–$169 billion, up nearly 50% at midpoint; ISG to grow ~80%, CSG low teens.

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

• Diluted non-GAAP EPS for the year expected at $17.90 ±$0.25, up ~74%.

• Expect to exit the year with meaningful backlog due to supply constraints.