Dell Earnings Surge, Raises FY27 Outlook
Dell earnings beat expectations and lifted FY27 revenue guidance as AI server demand surged, forcing investors to reprice enterprise-infrastructure risk.
KEY TAKEAWAYS
- Revenue was $43.8 billion, up 88% year over year.
- Non-GAAP EPS was $4.86 and operating cash flow reached $4.1 billion.
- Company raised FY27 revenue guidance to $165-$169 billion citing AI-server demand.
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Dell Technologies Inc. (NYSE: DELL) reported record fiscal first-quarter results on May 28, 2026, driven by strong demand for AI and data-center servers. The company raised its full-year FY27 revenue outlook, signaling a shift in enterprise-infrastructure spending.
Record Quarter Lifts FY27 Guidance
The company said in a press release on May 28, 2026, that fiscal 1Q27 revenue reached $43.8 billion, up 88% year over year. It reported GAAP diluted earnings per share (EPS) of $5.24 and non-GAAP diluted EPS of $4.86, both records for the quarter. Operating cash flow also hit a record $4.1 billion. Alongside these results, Dell provided guidance for the second quarter and updated its full-year FY27 outlook. The quarter marked the fastest sales growth since Dell’s 2018 return to public markets, reflecting a sharp acceleration in demand for its enterprise hardware.
AI Server Demand Drives Outlook Upgrade
Dell raised its full-year FY27 revenue guidance to $165 billion–$169 billion, up from a prior range of $138 billion–$142 billion. The company also increased profit expectations. The non-GAAP EPS figure topped the consensus estimate of $3.04 and more than tripled the prior-year non-GAAP EPS of $1.55. Management attributed the outlook revision to sustained demand for AI-optimized servers, often built around Nvidia GPUs, alongside continued purchases of traditional servers and networking equipment. AI-server sales surged 757% in the quarter.
Chief Financial Officer David Kennedy linked the higher annual sales forecast to the pickup in AI-server demand and highlighted a $9.7 billion Pentagon software opportunity as part of Dell’s broader government and enterprise exposure. Management described the results as evidence that client data-center expansion and AI build-outs are driving a step change in infrastructure spending, which the raised FY27 revenue range reflects.
The record operating cash flow provides Dell with added flexibility for capital allocation as it pursues data-center investments and large enterprise contracts. This financial cushion, combined with the stronger guidance, signals a more bullish corporate view of near-term demand for enterprise infrastructure tied to AI workloads.
The scale of the guidance increase and revenue surge marks a notable re-calibration of Dell’s near-term trajectory, reflecting management’s assessment that AI-driven data-center demand will continue to reshape enterprise-infrastructure spending.
