Dell Technologies Inc - Class C
Q1 2027 Earnings
Market Reaction
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Did DELL Beat Earnings? Q1 2027 Results
Dell Technologies delivered a blowout fiscal first quarter of 2027, with revenue of $43.84 billion climbing 87.5% year over year and non-GAAP diluted EPS of $4.86 beating the $2.96 consensus estimate by nearly 64%, as insatiable enterprise appetite for AI infrastructure drove results well beyond expectations. The decisive engine behind the quarter was Dell's Infrastructure Solutions Group, where AI-optimized server revenue alone reached $16.13 billion, up 757% year over year, helping ISG overall generate $29.01 billion, a 181% increase. Dell booked $24.40 billion in AI orders during the quarter, a figure that underscores the scale of demand reshaping the company's revenue mix, even as the shift toward lower-margin AI servers pushed gross margin to 17.8% from 21.1% a year ago. The Client Solutions Group added $14.61 billion, up 17%, providing a steady complement to the AI-driven surge. Looking ahead, Dell raised its full-year FY27 revenue guidance to a range of $165.00 billion to $169.00 billion, roughly 47% growth at the midpoint, with AI server revenue now expected to reach approximately $60.00 billion for the full year.
- AI-optimized server revenue surged 757% YoY to $16.1 billion, driven by strong in-quarter demand
- $24.4 billion in AI orders booked during Q1
- Traditional servers and networking revenue grew 92% YoY
- Commercial client revenue grew 18% YoY to a record $13.0 billion
- ISG operating margin expanded to 10.5% from 9.7%
- CSG operating margin expanded to 8.0% from 5.2%
- Strong execution across supply chain, sales, and pricing
Forward Guidance & Outlook
Dell raised its full-year FY27 revenue guidance to $165.0 billion to $169.0 billion, representing approximately 47% year-over-year growth at the midpoint of $167.0 billion. Full-year AI-optimized server revenue is now expected to be roughly $60 billion, up 144% year over year. Full-year GAAP diluted EPS is expected at $17.31 at the midpoint (up 99% YoY), and non-GAAP diluted EPS at $17.90 (up 74% YoY). For Q2 FY27, revenue is expected between $44.0 billion and $45.0 billion (up 49% YoY at the $44.5 billion midpoint), with GAAP diluted EPS of $4.48 at midpoint (up 164% YoY) and non-GAAP diluted EPS of $4.80 at midpoint (up 107% YoY).
DELL YoY Financials
DELL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.