Dell Technologies (DELL) reported its first-quarter fiscal 2026 results on Thursday, revealing a mixed performance as the company missed earnings estimates while surpassing revenue expectations. The tech giant’s earnings grew 17% year-over-year, but its non-GAAP earnings of $1.55 per share fell short of the Zacks Consensus Estimate by 9.88%.<\/p>\n\n\n\n
Despite the earnings miss, Dell’s revenue rose 5% year-over-year, totaling $23.38 billion, slightly exceeding analyst expectations. The revenue increase was mainly attributed to strong growth across its product segments. Product revenues, which rose by 9% to $17.59 billion, surpassed the consensus estimate by 4.43%. However, the services segment faced a decline, with revenues falling 6% year-over-year to $5.77 billion, missing estimates by 2.40%.<\/p>\n\n\n\n
The Infrastructure Solutions Group (ISG) posted impressive results, with revenues growing 12% year-over-year to $10.31 billion. The strength came from server and networking revenues, which rose 16% year-over-year to $6.32 billion, driven by strong demand in AI and traditional servers. Storage revenues also saw growth, increasing 6% year-over-year to $3.99 billion.<\/p>\n\n\n\n
Additionally, Dell saw a significant uptick in AI-optimized server orders, reaching $12.1 billion. The company shipped $1.8 billion worth of AI servers during the quarter, with a healthy AI server backlog of $14.4 billion. The Commercial Solutions Group (CSG) also saw a 5% increase in revenues to $12.50 billion, with the commercial client segment growing by 9%. However, consumer revenues dropped 19%, totaling $1.46 billion.<\/p>\n\n\n\n
Operating income for the quarter reached $1.66 billion, reflecting a 10% year-over-year increase. The operating margin expanded by 30 basis points to 7.1%. Dell\u2019s fiscal first-quarter non-GAAP gross profit grew 1% year-over-year to $5.05 billion, though its gross margin contracted by 80 basis points to 21.6%.<\/p>\n\n\n\n
The company also demonstrated strong cash flow performance, with operating cash flow reaching $2.8 billion. Adjusted free cash flow stood at $2.23 billion. Dell returned $2.4 billion to shareholders, including $2 billion in share repurchases and $396 million in dividends.<\/p>\n\n\n\n
Looking ahead, Dell Technologies provided guidance for the second quarter of fiscal 2026, projecting revenues between $28.5 billion and $29.5 billion, with the midpoint suggesting 16% year-over-year growth. Non-GAAP earnings per share for Q2 are expected to be $2.25, marking a 15% growth at the midpoint.<\/p>\n\n\n\n
For the full fiscal year, Dell expects revenues to range between $101 billion and $105 billion, with the midpoint indicating an 8% year-over-year increase. Non-GAAP earnings per share for fiscal 2026 are projected to be $9.40, reflecting a 15% increase at the midpoint.<\/p>\n\n\n\n
Dell Technologies reported a significant increase in cash holdings, with $7.70 billion in cash and equivalents as of May 2, 2025, compared to $3.63 billion at the end of January 2025. However, total debt also rose to $28.78 billion from $24.57 billion during the same period. The company’s debt-to-equity ratio is something to monitor as it works to balance cash reserves with its growing obligations.<\/p>\n\n\n\n
Following the earnings release, Dell\u2019s stock saw a slight dip of 0.84% in pre-market trading. The company currently holds a Zacks Rank #3 (Hold). For investors seeking better-ranked stocks in the Computer & Technology sector, Amphenol (APH), Juniper Networks (JNPR), and Upwork (UPWK) are rated as Zacks Rank #1 (Strong Buy) stocks.<\/p>\n","protected":false},"excerpt":{"rendered":"
Dell Technologies (DELL) reported its first-quarter fiscal 2026 results on Thursday, revealing a mixed performance as the company missed earnings estimates while surpassing revenue expectations. The tech giant’s earnings grew 17% year-over-year, but its non-GAAP earnings of $1.55 per share fell short of the Zacks Consensus Estimate by 9.88%. Revenue Growth Driven by Product Segments<\/p>\n","protected":false},"author":5,"featured_media":6566,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[3997,3996,3995,2555,477,3999,137,3998,3994,441,4000,439],"class_list":{"0":"post-6565","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-ai-servers","9":"tag-dell-technologies","10":"tag-earnings-miss","11":"tag-earnings-per-share","12":"tag-financial-performance","13":"tag-forecast","14":"tag-guidance","15":"tag-infrastructure-solutions-group","16":"tag-q1-results","17":"tag-revenue-growth","18":"tag-share-repurchases","19":"tag-stock-performance"},"_links":{"self":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts\/6565"}],"collection":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6565"}],"version-history":[{"count":2,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts\/6565\/revisions"}],"predecessor-version":[{"id":6568,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts\/6565\/revisions\/6568"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/media\/6566"}],"wp:attachment":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}