DELL Dell Technologies Inc.

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Executive Summary

Dell delivered a massive Q1 FY27 beat with record revenue of $43.8B (+88% YoY), record GAAP EPS of $5.24 (+282% YoY), and record non-GAAP EPS of $4.86 (+214% YoY). The company raised full-year FY27 revenue guidance to $167B at the midpoint (up 47% YoY) and increased its AI server revenue outlook to $60B, reflecting accelerating AI infrastructure demand.

Key Financial Metrics

Actionable Insight

Key Facts

• Record Q1 FY27 revenue of $43.8B, up 88% YoY, well above $35.77B consensus
• Record GAAP diluted EPS of $5.24 vs $2.96 consensus (+77% beat)
• Non-GAAP diluted EPS of $4.86, up 214% YoY
• ISG segment revenue record of $29.0B, up 181% YoY, driven by AI-optimized servers at $16.1B (+757% YoY)
• CSG revenue of $14.6B, up 17% YoY, with record commercial client revenue of $13.0B (+18%)
• Full-year FY27 revenue guidance raised to $165-169B ($167B midpoint), up 47% YoY
• Full-year AI-optimized server revenue estimate raised to ~$60B, up 144% YoY
• Full-year FY27 GAAP EPS guidance raised to $17.31 at midpoint, up 99% YoY
• Operating cash flow of $4.1B, up 46% YoY; returned $2.1B to shareholders in Q1
• Previous quarter (Q4 FY26) had record revenue of $33.4B and raised guidance — momentum accelerating

Financial Impact

Q1 revenue beat consensus by $8.1B (+22.6%); GAAP EPS beat by $2.28 (+77%); full-year revenue guidance raised by ~$27B from prior midpoint of $140B to $167B

Risk Factors

• AI server demand may be lumpy and concentrated among hyperscalers
• ISG margins compressed to 10.5% from 9.7% YoY on mix shift to lower-margin AI servers
• Gross margin declined to 17.8% from 21.1% YoY due to product mix
• Services revenue declined 1% YoY, signaling potential erosion in higher-margin recurring revenue
• Share count declining (~6% YoY) boosts EPS but suggests ongoing buyback dependency for EPS growth

Market Snapshot

Documents Analyzed

This report is based on 6 SEC documents filed with EDGAR.

US Market Status

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