◆ Inside the Latest Quarter (Q2 FY2027)

Dell Technologies (DELL) — the variant view

In the quarter to July 2026 Dell grew revenue 58%, tripled operating income and booked $60.9 billion of AI orders, its best quarter ever.

📈 DELL valuation, revenue & earnings — P/E, P/S, revenue, EPS →

Dell's second quarter of fiscal 2027, the thirteen weeks to 31 July 2026, was the strongest in its history. Revenue was $46,971 million, up 58%; products rose 72% to $41,112 million and services were flat at $5,859 million1. Operating income was $5,385 million, up 204%, and net income $4,133 million, up 255%; diluted earnings were $6.34 a share2.

Q2 FY2027 revenue by line ($M)16,401AI servers13,192Commercial client10,531Traditional servers4,850Storage1,842Consumer clientDell Q2 FY2027 results release
AI servers are now the largest line.

The infrastructure segment did most of it. ISG revenue was $31,782 million, up 89%: AI servers $16,401 million, traditional servers and networking $10,531 million, up 122%, and storage $4,850 million, up 26%3. ISG operating income was $4,781 million, a 15.0% margin against 8.8% a year earlier4, and 81% of segment operating income5.

The client segment grew too. CSG revenue was $15,034 million: commercial $13,192 million, up 22%, and consumer $1,842 million, up 7%6. It earned $1,142 million.

Gross margin rose to 20.9% from 18.3%7, and research and development spending rose 41% to $1,109 million8. Dell booked a record $60.9 billion of AI orders and ended the quarter with a $95 billion backlog9, and raised full-year guidance to $192.0 billion of revenue10.

The balance sheet moved with the growth: inventories reached $21,290 million and payables $49,723 million11. Dell returned a record $4.3 billion to shareholders12.

The first half as a whole shows how unusual the year is. Revenue for the six months was $90,813 million, up 71%, operating income $9,041 million and GAAP diluted earnings $11.58 a share13. The first quarter's GAAP earnings of $5.24 exceeded Dell's own non-GAAP figure of $4.8614, because the first half included about $0.7 billion of net gains on investments15, gains that are not part of the operating business.

The quarter confirms the scale of the AI wave and Dell's ability to profit from it. The next test is the third quarter, guided at $49.0 billion16; a result at or above it, with ISG's margin still above 12%, would say this quarter's profitability was not a one-off.

References
  1. ReportedRevenue was $46,971 million, up 58%; products rose 72% to $41,112 million and services were flat at $5,859 million.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - consolidated income statement. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  2. ReportedOperating income was $5,385 million, up 204%, and net income $4,133 million, up 255%; diluted earnings were $6.34 a share.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - consolidated income statement. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  3. ReportedISG revenue was $31,782 million, up 89%: AI servers $16,401 million, traditional servers and networking $10,531 million, up 122%, and storage $4,850 million, up 26%.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - ISG and CSG segment revenue and operating income. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  4. ReportedISG operating income was $4,781 million, a 15.0% margin against 8.8% a year earlier, and 81% of segment operating income.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - ISG and CSG segment revenue and operating income. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  5. ReportedISG operating income was $4,781 million, a 15.0% margin against 8.8% a year earlier, and 81% of segment operating income.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - ISG and CSG segment revenue and operating income. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  6. ReportedCSG revenue was $15,034 million: commercial $13,192 million, up 22%, and consumer $1,842 million, up 7%.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - ISG and CSG segment revenue and operating income. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  7. ReportedGross margin rose to 20.9% from 18.3%, and research and development spending rose 41% to $1,109 million.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - consolidated income statement. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  8. ReportedGross margin rose to 20.9% from 18.3%, and research and development spending rose 41% to $1,109 million.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - consolidated income statement. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  9. ReportedDell booked a record $60.9 billion of AI orders and ended the quarter with a $95 billion backlog, and raised full-year guidance to $192.0 billion of revenue.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - AI orders, backlog and full-year guidance. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  10. ReportedDell booked a record $60.9 billion of AI orders and ended the quarter with a $95 billion backlog, and raised full-year guidance to $192.0 billion of revenue.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - AI orders, backlog and full-year guidance. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  11. ReportedThe balance sheet moved with the growth: inventories reached $21,290 million and payables $49,723 million.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - balance sheet, cash flow and capital returns. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  12. ReportedDell returned a record $4.3 billion to shareholders.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - balance sheet, cash flow and capital returns. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  13. ReportedRevenue for the six months was $90,813 million, up 71%, operating income $9,041 million and GAAP diluted earnings $11.58 a share.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - consolidated income statement. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  14. ReportedThe first quarter's GAAP earnings of $5.24 exceeded Dell's own non-GAAP figure of $4.86, because the first half included about $0.7 billion of net gains on investments, gains that are not part of the operating business.
    Dell Technologies first-quarter fiscal 2027 results release, Form 8-K exhibit 99.1. — Q1 FY2027 · publ. 28 May 2026 · source ↗
  15. ReportedThe first quarter's GAAP earnings of $5.24 exceeded Dell's own non-GAAP figure of $4.86, because the first half included about $0.7 billion of net gains on investments, gains that are not part of the operating business.
    Dell Technologies Form 10-Q for the quarter ended 31 July 2026 - remaining performance obligations, debt, deferred revenue, purchase obligations, share counts and risk disclosures. — Q2 FY2027 · publ. 8 September 2026 · source ↗
  16. ReportedThe next test is the third quarter, guided at $49.0 billion; a result at or above it, with ISG's margin still above 12%, would say this quarter's profitability was not a one-off.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - AI orders, backlog and full-year guidance. — Q2 FY2027 · publ. 1 September 2026 · source ↗
Sources
Generated September 26, 2026