AI Takeaway
Dell Technologies delivered a strong FY2026, with revenue surging 18.8% to $113.5B driven by AI infrastructure demand, while net income rose 29.7% to $5.9B and operating cash flow more than doubled to $11.2B.
Revenue
$113.54B
++18.80% YoY
EPS (Basic)
$8.79
++35.02% YoY
Gross Margin
20.0%
-2.24% YoY
Operating Income
$8.15B
++30.66% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue grew 18.8% year-over-year from $95.6B to $113.5B in FY2026, reflecting robust demand for AI servers and infrastructure solutions as enterprises accelerated AI-related capital spending.
Source: Source: 10-K Income Statement
Operating income surged 30.7% to $8.1B, with operating margin expanding 70 basis points to 7.2%, even as gross margin contracted 220 basis points to 20.0% — indicating significant SG&A savings (down 4.5% to $11.4B) offset higher cost-of-revenue pressures.
Source: Source: 10-K Income Statement
Operating cash flow more than doubled, rising 147.4% from $4.5B to $11.2B in FY2026, reflecting improved working capital management and stronger earnings quality alongside the revenue ramp.
Source: Source: 10-K Cash Flow Statement
2 more insights available
Upgrade to unlockDell carries negative stockholders' equity of -$2.5B (deteriorating from -$1.5B in the prior year) and total liabilities of $103.8B exceeding total assets of $101.3B. This structural leverage, combined with $31.5B in long-term debt, limits financial flexibility and increases vulnerability to rising interest rates or an economic downturn.
Source: Source: 10-K Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $3.89 versus the $3.60 analyst consensus — a +8.1% beat for FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $113.54B | $95.57B | +18.80% |
Cost of Revenue | $90.83B | $74.32B | +22.22% |
Gross Profit | $22.71B | $21.25B | +6.86% |
Operating Income | $8.15B | $6.24B | +30.66% |
Net Income | $5.94B | $4.58B | +29.72% |
EPS (Basic) | $8.79 | $6.51 | +35.02% |
EPS (Diluted) | $8.68 | $6.38 | +36.05% |
R&D Expense | $3.14B | $3.06B | +2.65% |
SG&A Expense | $11.42B | $11.95B | -4.48% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $101.29B | $79.75B | +27.01% |
Current Assets | $57.6B | $36.23B | +58.99% |
Total Liabilities | $103.76B | $81.13B | +27.88% |
Current Liabilities | $63.27B | $46.53B | +35.98% |
Stockholders' Equity | $-2.47B | $-1.48B | -66.67% |
Cash & Equivalents | $11.53B | $3.63B | +217.31% |
Long-Term Debt | $31.5B | $24.57B | +28.23% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $11.19B | $4.52B | +147.40% |
Investing Cash Flow | $-2.06B | $-2.21B | +7.22% |
Financing Cash Flow | $-1.46B | $-5.82B | +74.82% |
Share Buybacks | $6.01B | $2.59B | +132.38% |
D&A | $3.03B | $3.12B | -3.01% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 20.0% | 22.2% | -2.24% |
Operating Margin | 7.2% | 6.5% | +0.65% |
Net Margin | 5.2% | — | — |
ROE | -240.3% | — | — |
ROA | 5.9% | — | — |
Current Ratio | $0.91 | — | — |
Debt to Equity | $-42.006 | — | — |
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Dell's revenue grew 18.8% year-over-year to $113.5B in FY2026, up from $95.6B in the prior year. This growth was primarily driven by strong demand for AI servers and infrastructure solutions as enterprises ramped AI-related capital spending.
Dell's FY2026 results showed strong top-line growth (+18.8% revenue to $113.5B), improving operating leverage (operating income +30.7% to $8.1B), and exceptional cash generation (operating cash flow +147% to $11.2B). However, gross margin compressed 220 basis points to 20.0% due to the shift toward lower-margin AI server products, and the balance sheet remains highly leveraged with negative stockholders' equity of -$2.5B.
Yes, Dell's net income grew 29.7% to $5.9B in FY2026, and diluted EPS rose 36.1% to $8.68, with the EPS growth boosted by $6.0B in share buybacks. Operating income also surged 30.7% to $8.1B, reflecting strong cost discipline even as gross margins faced pressure.
Key risks for Dell include its highly leveraged balance sheet with negative stockholders' equity of -$2.5B and $31.5B in long-term debt, gross margin compression from the AI server mix shift (gross margin fell to 20.0%), and a current ratio below 1.0 (0.91) indicating current liabilities exceed current assets. Additionally, Dell faces concentration risk if the AI infrastructure spending cycle decelerates.
Dell's operational health is strong, with $11.2B in operating cash flow and net income of $5.9B, but its balance sheet carries structural leverage risks including negative stockholders' equity of -$2.5B and total liabilities of $103.8B exceeding total assets of $101.3B. Cash and equivalents tripled to $11.5B, providing near-term liquidity, but long-term debt rose 28.2% to $31.5B, requiring careful monitoring.