Q2 2026 Dell Technologies Inc Earnings Call Transcript
Key Points
- Record revenue of $47 billion, up 58% year-over-year, and record EPS of $7.04, up 203%.
- AI server momentum accelerated with record $60.9 billion in orders, $16.4 billion in revenue, and a record $95 billion backlog.
- Traditional server revenue grew 122%, driven by data center modernization and agentic AI workloads, with significant share gains.
- Storage revenue grew 26%, with Dell IP portfolio demand growing above market for six consecutive quarters.
- Raised full-year revenue guidance by $25 billion to $192 billion and EPS to $25.50, reflecting strong second-half expectations.
- Supply constraints persist, particularly for DRAM, NAND, and other components, limiting ability to meet full demand.
- AI server revenue growth may pressure gross margins due to mix, though overall margins improved this quarter.
- CSG operating income rate is expected to moderate to roughly 6% in Q3 as the company balances demand and profitability.
- Customer cost sensitivity is leading to extended PC upgrade cycles, potentially delaying refresh opportunities.
- The company faces execution risks in managing a dynamic supply environment and scaling operations to meet unprecedented demand.
Please stand by. Good afternoon and welcome to the fiscal year 2027 second quarter financial results conference call for Dell Technologies, Inc. I'd like to inform all participants this call is being recorded at the request of Dell Technologies. This broadcast is the copyrighted property of Dell Technologies, Inc.
Any rebroadcast of this information in whole or part without the prior written permission of Dell Technologies is prohibited. Following prepared remarks, we will conduct a question-and-answer session. (Operator Instructions) I'd like to turn the call over to Paul Frontz, Head of Investor Relations. Mr. Frontz, you may begin.
Thanks everyone for joining us. With me today are Jeff Clarke, David Kennedy, and Tyler Johnson. Our earnings materials are available on our IR website and I encourage you to review these materials. Also, please take some time to review the presentation, which includes additional content to complement our discussion this afternoon.
During this call,
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
