Companies /Technology

Dell Technologies Inc - Class C

NYSE: DELL Computer Hardware
$456.01
▼ $0.23 (−0.05%) today
Markets closed · 8:52pm ET

Q2 2026 Earnings

Reported Aug 28, 2025, 4:09pm ET · SEC source
$2.32
Beat +1.13%
EPS · est. $2.29
$29.8B
Beat +2.00%
Revenue · est. $29.2B
+18.9%
Beating market
DELL vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0Aug 28Aug 29report 4:09pm ETearnings−0.6%−7.5%
−8%−4%0Aug 28Aug 29earnings−0.6%−7.5%
DELL −7.5%S&P 500 −0.6%
−8%−4%0Aug 28Aug 29report 4:09pm ETearnings−1.3%−7.5%
−8%−4%0Aug 28Aug 29earnings−1.3%−7.5%
DELL −7.5%NASDAQ −1.3%
−8%−4%0+4%Aug 27Sep 5report 4:09pm ETearnings−0.4%−3.0%
−8%−4%0+4%Aug 27Sep 5earnings−0.4%−3.0%
DELL −3.0%S&P 500 −0.4%
−8%−4%0+4%Aug 27Sep 5report 4:09pm ETearnings−0.3%−3.0%
−8%−4%0+4%Aug 27Sep 5earnings−0.3%−3.0%
DELL −3.0%NASDAQ −0.3%
−8.88%
Day of report
−0.97%
Next session
+0.70%
One week
+22.54%
30 days

S&P 500 over the same 30 days: +3.63%.

Did DELL Beat Earnings? Q2 2026 Results

Dell Technologies delivered a record-breaking Q2 FY26, beating Wall Street on both top and bottom lines as its AI infrastructure buildout continued to redefine the company's revenue profile. Non-GAAP diluted EPS came in at $2.32, edging past the $2.29 consensus by 1.13%, while revenue surged 19% year over year to $29.78 billion against an expected $29.19 billion. The single biggest force behind the quarter was an explosive 69% jump in Servers and Networking revenue to a record $12.94 billion, with Dell shipping $10.00 billion in AI solutions through just the first half of FY26, more than it shipped in all of FY25. Those <a href="https://247wallst.com/investing/2025/08/28/live-will-dell-pop-after-tonights-earnings/">numbers heading into earnings</a> raised the stakes considerably, and Dell largely delivered. The trade-off, however, is visible in gross margins, which compressed to 18.3% from 21.4% a year ago, reflecting the lower-margin nature of AI server hardware. Looking ahead, Dell raised its full-year AI server shipment guidance to $20.00 billion and set FY26 revenue guidance at $105.00 billion to $109.00 billion, with non-GAAP EPS of $9.55 at the midpoint.

Key Takeaways
  • Record Servers and Networking revenue driven by AI server demand, up 69% YoY
  • $10 billion of AI solutions shipped in the first half of FY26, surpassing all FY25 AI shipments
  • Product revenue grew 26% YoY to $23.9 billion
  • Cash flow from operations nearly doubled, up 90% YoY
  • Free cash flow surged 165% YoY to $1.87 billion
  • SG&A expenses declined 9% YoY, improving operating leverage

Forward Guidance & Outlook

For Q3 FY26, Dell expects revenue between $26.5 billion and $27.5 billion (midpoint $27.0 billion, up 11% YoY), GAAP diluted EPS of $2.07 at the midpoint (up 26% YoY), and non-GAAP diluted EPS of $2.45 at the midpoint (up 11%). For full-year FY26, the company expects revenue between $105.0 billion and $109.0 billion (midpoint $107.0 billion, up 12% YoY), GAAP diluted EPS of $7.98 at the midpoint (up 25% YoY), and non-GAAP diluted EPS of $9.55 at the midpoint (up 17%). AI server shipment guidance was raised to $20 billion for FY26.

DELL YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$9.0B$18.0B$27.0B$25.0B$29.8BRevenue$5.3B$5.4BGross Profit$1.3B$1.8BOperating Income$846.0M$1.2BNet Income
$0$9.0B$18.0B$27.0BRevenueGross ProfitOperating IncomeNet Income

DELL Revenue by Segment

Infrastructure Solutions Group$16.8B+44.0%
Products
AI-Optimized Servers
Client Solutions Group$12.5B+1.0%
Commercial Client$10.8B+2.0%
Servers and Networking$12.9B+69.0%
Traditional Servers and Networking
Services

Figures from SEC filings and company reports. Not investment advice.