Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Dell Technologies delivered exceptional Q1 FY2027 growth, with revenue up 87.5% to $43.842B and GAAP net income up 256.3% to $3.438B, driven principally by demand for AI-optimized servers, although gross margin declined on the AI-server mix shift.
Revenue
$43.84B
+87.54% YoY
EPS (Diluted)
$5.24
+282.48% YoY
Gross Margin
17.8%
-3.4 pts YoY
Operating Income
$3.66B
+213.82% YoY
Source: SEC XBRL
Dell Technologies (DELL) reported Q1 FY2027 revenue of $43.84B, up 87.5% year over year. Operating margin was 8.3%, up 3.3 points from 5.0% a year earlier. Operating cash flow was $4.08B, up 46.0% year over year. DELL's fiscal Q1 FY2027 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 4.86 | 3.00 | Beat +62.1% |
| Mar 2026 | 3.89 | 3.60 | Beat +8.1% |
| Dec 2025 | 2.59 | 2.52 | Beat +2.7% |
| Sep 2025 | 2.32 | 2.35 | Miss -1.2% |
Adjusted (non-GAAP) EPS of $4.86 versus the $3.00 analyst consensus — a +62.1% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $5.24.
Compiled by AI from 10-Q Item 2 of this filing
Management said Q1 FY2027 net revenue rose 88% to $43.842B, led by ISG growth driven primarily by AI-optimized servers and, to a lesser extent, traditional servers, networking, and storage. CSG also grew, primarily from commercial offerings, while Corporate and other revenue declined because Dell no longer distributes standalone VMware offerings.
Source: 10-Q Item 2 MD&A
GAAP gross margin increased 58% to $7.782B, but the gross-margin rate fell 330 basis points to 17.8%, primarily because AI-optimized servers represented a larger share of sales. GAAP operating margin nevertheless improved 330 basis points to 8.3% as the operating-expense rate declined amid substantial revenue growth.
Source: 10-Q Item 2 MD&A
For Fiscal 2027, Dell expects significant ISG revenue growth and strong CSG revenue growth, supported by server and networking demand and the PC refresh cycle. It also expects component-cost inflation, particularly memory inflation caused by AI-related demand and capacity limits, to persist through the remainder of Fiscal 2027 and pressure margin rates.
Source: 10-Q Item 2 MD&A
Cash flow from operations increased 46% to $4.081B and free cash flow increased 40% to $3.118B in Q1 FY2027. Management attributed operating cash flow to revenue growth and profitability, partly offset by working-capital dynamics associated with increased AI-optimized-server demand.
Source: 10-Q Item 2 MD&A
GAAP net income was $3.438B, while non-GAAP net income was $3.190B. The reconciliation includes a $0.631B gain on strategic investments related to a single investee and $0.2B of severance expense related to workforce-reduction activities.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 43.84 $B | 23.38 $B | +87.54% |
Cost of Revenue $B | 36.06 $B | 18.44 $B | +95.54% |
Gross Profit $B | 7.78 $B | 4.94 $B | +57.63% |
Operating Income $B | 3.66 $B | 1.17 $B | +213.82% |
Net Income $B | 3.44 $B | 0.97 $B | +256.27% |
EPS (Basic) $ | 5.30 $ | 1.39 $ | +281.29% |
EPS (Diluted) $ | 5.24 $ | 1.37 $ | +282.48% |
R&D Expense $M | 983.00 $M | 808.00 $M | +21.66% |
SG&A Expense $B | 3.14 $B | 2.96 $B | +6.04% |
Answers draw on this SEC filing and the data on this page
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