DELL · Dell Technologies Inc.

Dell Technologies delivered a blowout first quarter for fiscal 2027, with revenue surging 88% year over year to a record $43.8 billion, driven overwhelmingly by the Infrastructure Solutions Group (ISG). ISG revenue more than doubled to $29.0 billion, as AI-optimized server revenue skyrocketed 757% to $16.1 billion, reflecting insatiable enterprise demand for AI compute infrastructure. Traditional servers and networking also grew 92%, while storage posted a modest 8% increase. The Client Solutions Group (CSG) contributed $14.6 billion, up 17%, with commercial revenue reaching a record $13.0 billion. Operating income expanded dramatically: GAAP operating income rose 214% to $3.656 billion, and non-GAAP operating income increased 154% to $4.235 billion, underscoring operating leverage despite higher costs. GAAP diluted EPS of $5.24 and non-GAAP diluted EPS of $4.86 both set records, more than tripling and doubling, respectively, from the prior year. Cash generation remained robust, with operating cash flow of $4.1 billion and adjusted free cash flow of $3.165 billion. Management raised guidance for the second quarter and full year: Q2 revenue is expected between $44.0 billion and $45.0 billion, above the Q1 run rate, and full-year revenue guidance was boosted to a midpoint of $167 billion (up ~50% YoY). AI server revenue for the full year is now anticipated to be roughly $60 billion, up 144% from fiscal 2026. Non-GAAP EPS guidance for Q2 and full year implies continued strong growth. The $2.1 billion returned to shareholders in the quarter demonstrates confidence in the cash flow trajectory. CEO Jeff Clarke highlighted the pace of innovation and strong demand, while CFO David Kennedy cited execution across supply chain and sales. Overall, Dell's results and guidance underscore its pivotal role in the AI infrastructure buildout, with the company capturing significant share in AI servers while maintaining profitability in its traditional businesses.