Dell Technologies Reports Record Q2 FY27 Results and Raises Full-Year Guidance

Dell Technologies Inc. ($DELL) – Form 8-K Earnings Summary

Executive Overview

Dell Technologies Inc. furnished its Q2 Fiscal 2027 earnings report via Form 8-K (Item 2.02). The company delivered record financial performance driven by massive acceleration in artificial intelligence infrastructure and server demand, leading management to raise full-year FY27 guidance substantially.

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Key Financial Highlights (Q2 FY27)

• Net Revenue: $46.97B (reported as ~$47.0B), up 58% YoY compared to $29.78B in Q2 FY26.
• Operating Income (GAAP): $5.39B, an increase of 204% YoY.
• Non-GAAP Operating Income: $5.93B, up 160% YoY.
• Net Income (GAAP): $4.13B, up 255% YoY.
• Diluted EPS (GAAP): $6.34 vs. $1.70 in the prior year period (+273% YoY).
• Diluted EPS (Non-GAAP): $7.04 vs. $2.32 in the prior year period (+203% YoY).
• Operating Cash Flow: $2.23B; Adjusted Free Cash Flow reached $8.15B (+224% YoY).

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Segment & Business Unit Highlights

1. Infrastructure Solutions Group (ISG):

   • Total ISG Revenue: $31.8B (+89% YoY).
   • AI-Optimized Servers: $16.4B (+100% YoY), with orders totaling $60.9B and backlog reaching $95B.
   • Traditional Servers & Networking: $10.5B (+122% YoY).
   • Storage: $4.9B (+26% YoY).
   • ISG Operating Income: $4.8B (+225% YoY).

2. Client Solutions Group (CSG):

   • Total CSG Revenue: $15.0B (+20% YoY).
   • Commercial Client Revenue: $13.2B (+22% YoY).
   • Consumer Revenue: $1.8B (+7% YoY).
   • CSG Operating Income: $1.1B (+42% YoY).

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Capital Return & Dividends

• Shareholder Return: Returned $4.3B to shareholders in Q2 through repurchases and dividends.
• Quarterly Dividend: Declared a cash dividend of $0.63 per common share, payable October 30, 2026, to holders of record as of October 20, 2026.

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Forward Guidance

• Q3 FY27 Guidance:

  • Revenue: ~$49.0B (+81% YoY)
  • GAAP EPS: ~$6.10 (+168% YoY)
  • Non-GAAP EPS: ~$6.50 (+151% YoY)

• Full-Year FY27 Guidance (Raised):

  • Revenue: Raised by $25B to $192.0B (+69% YoY, prior $167.0B)
  • AI Server Revenue: Raised to $74.0B (+200% YoY, prior $60.0B)
  • GAAP EPS: Raised to $24.37 (+181% YoY, prior $17.31)
  • Non-GAAP EPS: Raised to $25.50 (+148% YoY, prior $17.90)