DELL — Fiscal Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop · AI-drafted from the SEC filing
Dell's fiscal Q2 2027 revenue jumped 57.7% to a record $47.0B as AI-server sales doubled and pricing lifted gross margin to 20.9%, tripling EPS to $6.34, though free cash flow fell 47% as inventory and customer financing ballooned.
- Revenue
- $47.0B
- +57.7% YoY
- Net income
- $4.1B
- +255.1% YoY
- Diluted EPS
- $6.34
- +272.9% YoY
- Operating margin
- 11.5%
Overview
Dell Technologies sells servers, storage and networking equipment to businesses and cloud operators (its Infrastructure Solutions Group, ISG), and PCs and workstations (its Client Solutions Group, CSG). Dell's fiscal year ends around the end of January, so its fiscal Q2 2027 is the quarter from May 2 to July 31, 2026. Results were released on September 1, 2026, and the 10-Q was filed on September 8, 2026.
Revenue reached a record $47.0 billion, up 57.7% from a year earlier. GAAP net income (profit under standard accounting rules) more than tripled to $4.13 billion, and diluted earnings per share rose 273% to $6.34. There are two causes. AI-server revenue doubled to $16.4 billion. Separately, Dell raised prices across servers, storage and PCs while memory chip costs were rising steeply, and that pricing lifted margins instead of squeezing them.
Key figures
| Metric | This period (Q2 FY27) | Same period last year (Q2 FY26) | YoY Change |
|---|---|---|---|
| Net revenue | $46,971M | $29,776M | +57.7% |
| Gross margin | 20.9% | 18.3% | +2.6 pts |
| Operating margin | 11.5% | 6.0% | +5.5 pts |
| Net income (GAAP) | $4,133M | $1,164M |
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