Dell Earnings Jump After Record Fiscal 2026 Revenue
Dell earnings showed record fiscal 2026 revenue and raised fiscal 2027 guidance, citing AI-optimized server demand and lifting after-hours shares.
KEY TAKEAWAYS
- Record fiscal 2026 revenue $113.5 billion and non-GAAP EPS $10.30 underpinned results.
- Fiscal 2027 revenue guidance $138-$142 billion implies about 23% growth at midpoint.
- AI-optimized server orders exceeded $64 billion with a $43 billion backlog entering FY27.
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Dell Technologies Inc. reported on Feb. 26, 2026, that fiscal 2026 revenue reached a record $113.5 billion, a 19% increase year over year. The company raised its fiscal 2027 guidance above estimates, citing strong demand for AI-optimized servers that left a record backlog entering the new year.
Record Full-Year Results
Dell reported GAAP diluted earnings per share (EPS) of $8.68 for fiscal 2026, up 36% from the prior year, and non-GAAP diluted EPS of $10.30, a 27% increase. Cash flow from operations totaled $11.2 billion, reflecting the company’s ability to convert sales into liquidity.
For the fiscal fourth quarter, revenue ranged from $31.8 billion to $33.4 billion, up roughly 32% to 39% year over year. Non-GAAP diluted EPS for the quarter was between $3.53 and $3.89, about 32% higher than a year earlier. This quarterly strength contributed to the annual gains and supported an aggressive outlook for the coming year.
Guidance and AI Demand
Dell guided fiscal 2027 revenue between $138 billion and $142 billion, implying about 23% growth from fiscal 2026 at the midpoint. It expects non-GAAP EPS growth of approximately 25%. The company set a fiscal 2027 target of $50 billion in AI-optimized server revenue and forecast first-quarter revenue of $34.7 billion to $35.7 billion, with non-GAAP diluted EPS of $2.90.
The outlook reflects robust commercial demand for AI-optimized servers. Dell said orders for this product family exceeded $64 billion in fiscal 2026, with more than $25 billion shipped during the year and a $43 billion backlog entering fiscal 2027. This scale was evident in segment results: the Infrastructure Solutions Group generated $19.6 billion in revenue, including $9.0 billion from AI-optimized servers, a 342% increase year over year. The Client Solutions Group recorded $13.5 billion in revenue, up 14% from the prior year.
Together, the guidance and AI backlog indicate materially faster top-line growth in fiscal 2027 and a shift in Dell’s revenue mix toward infrastructure sales driven by AI workloads.
