Dell Technologies Stock Earnings Reports

Dell reported a strong fiscal Q2 with record revenue of $29.8B (up 19%) and Q2 record EPS of $2.32 (up 19%). AI servers remain the primary growth driver: Dell booked $5.6B of AI orders in the quarter, shipped a record $8.2B (ending AI backlog $11.7B), and has shipped $10B of AI servers year-to-date. Management raised AI server shipments guidance by $5B to $20B for FY26 and raised full-year revenue and EPS guidance (FY26 revenue midpoint $107B, diluted non-GAAP EPS $9.55, up 17% vs prior). ISG (infrastructure & servers) and CSG (client solutions) together grew ~22%; ISG revenue was a record $16.8B (up 44%) with servers & networking up 69%. Storage was down 3% as demand moderated, though Dell IP storage (PowerStore, all-flash portfolio) showed double-digit strength. CSG grew 1% with commercial up 2% and consumer down 7%; management expects PC market tailwinds from Windows 10 EOL. Operating expenses fell 4% (modernization efficiencies), operating income rose 10% to $2.3B, operating cash flow was $2.5B, and the company returned $1.3B to shareholders. Guidance implies improved profitability in H2 driven by mix shifts (less AI percentage, stronger storage seasonality and Dell IP) and continued cost discipline. Key investor takeaways: material AI-led growth and backlog with scalable manufacturing capacity, raised FY guidance, improving cash generation and capital return, storage softness but Dell IP strength, and focus on margin improvement via mix and operational efficiencies.