Dell Technologies (DELL) Q2 2027 Financial Results Summary
QuoteReporter
Dell Technologies (DELL) Q2 2027: Record Revenue and EPS Growth — Strongly Positive
Dell Technologies (NYSE: DELL) reported impressive financial results for its second quarter of fiscal 2027, showcasing significant growth across key metrics. The company achieved record revenue of $47.0 billion, reflecting an increase of $17.2 billion or +58% year over year. This robust performance underscores Dell's strong positioning in the technology sector, particularly in AI and infrastructure solutions.
Key Financial Metrics
- Revenue: $47.0 billion, up $17.2 billion or +58% YoY
- Diluted EPS: $6.34, up $4.64 or +273% YoY
- Non-GAAP Diluted EPS: $7.04, up $4.72 or +203% YoY
- Cash Flow from Operations: $2.2 billion
- Operating Income: $5.3 billion, up $3.6 billion or +204% YoY
Analyst Opinion
This quarter is exceptionally positive for shareholders, as Dell not only exceeded revenue expectations but also delivered record earnings per share. The substantial growth in both GAAP and non-GAAP EPS indicates strong operational efficiency and profitability. The company’s ability to generate cash flow from operations of $2.2 billion further enhances its financial stability and capacity for future investments.
The impressive performance is largely attributed to the booming demand for AI-optimized servers, which generated $16.4 billion in revenue, marking a 100% increase year over year. Additionally, traditional servers and networking revenue surged by 122%, while storage revenue grew by 26%. This diversified growth across segments highlights Dell's strategic focus on high-demand areas within the technology landscape.
Capital Return and Guidance
Dell Technologies returned a record $4.3 billion to shareholders during the quarter through share repurchases and dividends. The board of directors declared a quarterly cash dividend of $0.63 per common share, payable on October 30 to shareholders of record as of October 20. This commitment to returning capital to shareholders is a positive signal of the company's confidence in its ongoing performance.
Looking ahead, Dell has raised its full-year fiscal 2027 revenue guidance to $192.0 billion, up from a previous estimate of $167.0 billion, representing a 69% increase year over year. The updated guidance for GAAP diluted EPS is now $24.37, up 181%, and for non-GAAP diluted EPS, it is $25.50, up 148%. This optimistic outlook reflects the company's strong momentum and the anticipated continued growth in AI and infrastructure solutions.
Forward Catalysts
Investors should closely monitor Dell's performance in the upcoming quarter, particularly in the AI server segment, which has shown remarkable growth. The third-quarter guidance projects revenue of $49.0 billion, representing an 81% increase year over year, and GAAP diluted EPS of $6.10, up 168%. The company's ability to sustain this growth trajectory will be critical for maintaining investor confidence and driving stock performance.
In summary, Dell Technologies' second quarter results demonstrate a powerful combination of revenue growth, profitability, and shareholder returns, positioning the company favorably for the future.
Note: All amounts in the following tables are in millions.
| July 31, 2026 | August 1, 2025 | Change (%) | Six Months Ended | July 31, 2026 | August 1, 2025 | Change (%) | |
|---|---|---|---|---|---|---|---|
| Net Revenue | $46,XXX | $29,XXX | 58% | $90,XXX | $53,XXX | 71% | |
| Operating Income | $5,XXX | $1,XXX | 204% | $9,XXX | $2,XXX | 208% | |
| Net Income | $4,XXX | $1,XXX | 255% | $7,XXX | $2,XXX | 256% | |
| Change in Cash from Operations | $2,XXX | $2,XXX | (13%) | $6,XXX | $5,XXX | 18% | |
| Earnings per Share – Diluted | $6.34 | $1.70 | 273% | $11.58 | $3.07 | 277% | |
| Non-GAAP Operating Income | $5,XXX | $2,XXX | 160% | $10,XXX | $3,XXX | 157% | |
| Non-GAAP Net Income | $4,XXX | $1,XXX | 189% | $7,XXX | $2,XXX | 191% | |
| Adjusted Free Cash Flow | $8,XXX | $2,XXX | 224% | $11,XXX | $4,XXX | 138% | |
| Earnings per Share – Non-GAAP | $7.04 | $2.32 | 203% | $11.90 | $3.86 | 208% |
| July 31, 2026 | January 30, 2026 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $11,569 | $11,528 |
| Accounts receivable, net of allowance | $22,918 | $17,585 |
| Short-term financing receivables, net | $12,805 | $8,458 |
| Inventories | $21,290 | $10,437 |
| Other current assets | $11,965 | $9,594 |
| Total current assets | $80,547 | $57,602 |
| Property, plant, and equipment, net | $7,417 | $6,676 |
| Long-term investments | $2,679 | $1,730 |
| Long-term financing receivables, net | $7,625 | $5,822 |
| Goodwill | $19,448 | $19,547 |
| Intangible assets, net | $4,347 | $4,533 |
| Other non-current assets | $5,330 | $5,376 |
| Total assets | $127,393 | $101,286 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Short-term debt | $8,481 | $7,990 |
| Accounts payable | $49,723 | $33,630 |
| Accrued and other liabilities | $10,738 | $8,315 |
| Short-term deferred revenue | $14,761 | $13,334 |
| Total current liabilities | $83,703 | $63,269 |
| Long-term debt | $25,985 | $23,513 |
| Long-term deferred revenue | $14,957 | $13,596 |
| Other non-current liabilities | $4,175 | $3,378 |
| Total liabilities | $128,820 | $103,756 |
| Shareholders’ equity (deficit): | ||
| Common stock and capital in excess of | $9,277 | $9,457 |
| Treasury stock at cost | $-20,010 | $-14,533 |
| Retained earnings | $10,065 | $3,325 |
| Accumulated other comprehensive loss | $-759 | $-719 |
| Total shareholders' equity (deficit) | $-1,427 | $-2,470 |
| Total liabilities and shareholders' equity | $127,393 | $101,286 |
Disclaimer
The content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information.