Dell Technologies (DELL) Q2 2027 earnings summary

Executive summary

• Achieved record Q2 revenue of $47.0 billion, up 58% year-over-year, with record diluted EPS of $6.34, up 273%, and non-GAAP EPS of $7.04, up 203%.

• Strong execution and growth across all business segments, driven by infrastructure modernization and AI adoption.

• Booked $60.9 billion in AI server orders, with a record $95 billion AI backlog.

• Opportunity pipeline expanded, with Neocloud, Sovereign, and Enterprise customer base exceeding 6,500.

• Cash flow from operations was $2.2 billion, and a record $4.3 billion was returned to shareholders via share repurchases and dividends.

Financial highlights

• Gross margin for Q2 was $9.83 billion, up 80% year-over-year, with a gross margin rate of 20.9% (non-GAAP: 21.1%).

• Operating income was $5.93 billion (non-GAAP, up 160% Y/Y); net income was $4.13 billion, up 255% Y/Y.

• Adjusted free cash flow reached $8.15 billion, up 224% year-over-year.

• Returned $4.3 billion to shareholders, including share repurchases and dividends.

• Ended quarter with $14.2 billion in cash and investments.

Outlook and guidance

• FY27 revenue guidance raised by $25 billion to $192 billion, up ~69% year-over-year; non-GAAP EPS guidance is $25.50, up ~148%.

• Q3 FY27 revenue guidance is $49.0 billion, up ~81% year-over-year; non-GAAP diluted EPS guidance is $6.50.

• FY27 AI Server revenue expected at $74 billion, nearly 3x year-over-year.

• Operating expenses to be approximately 8% of revenue, the lowest in company history.