Summary
Dell Technologies reported a strong fiscal year 2026, demonstrating significant growth in net revenue, up 19%, largely driven by a 40% surge in the Infrastructure Solutions Group (ISG). This growth was particularly fueled by a remarkable 166% increase in AI-optimized servers, reflecting robust customer demand for AI infrastructure. The Client Solutions Group (CSG) also showed resilience, with a 5% increase in net revenue driven by commercial offerings, indicating a positive PC refresh cycle. The company's profitability saw substantial improvements, with operating income increasing by 31% year-over-year, supported by disciplined cost management and revenue growth, despite a slight decline in gross margin percentage due to the product mix shift towards AI-optimized servers. Dell Technologies continues to focus on its long-term strategy of providing essential technology solutions for the data and AI era. The company's solid cash flow generation, significant share repurchases, and a substantial increase in the quarterly dividend rate signal a commitment to returning value to shareholders. With substantial authorization remaining on its share repurchase program and strategic investments in emerging technologies, Dell Technologies appears well-positioned to capitalize on future growth opportunities, particularly in the AI sector.
Financial Highlights
56 data points| Revenue | $113.54B |
| Cost of Revenue | $90.83B |
| Gross Profit | $22.71B |
| R&D Expenses | $3.14B |
| SG&A Expenses | $11.42B |
| Operating Expenses | $14.56B |
| Operating Income | $8.15B |
| Net Income | $5.94B |
| EPS (Basic) | $8.79 |
| EPS (Diluted) | $8.68 |
| Shares Outstanding (Basic) | 675.00M |
| Shares Outstanding (Diluted) | 684.00M |
Key Highlights
- 1Net revenue increased by 19% to $113.5 billion, driven by strong performance in both Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).
- 2ISG net revenue grew 40% to $60.8 billion, with AI-optimized servers revenue up 166%, highlighting significant demand in the AI market.
- 3CSG net revenue increased 5% to $50.9 billion, driven by commercial offerings, indicating a healthy PC refresh cycle.
- 4Operating income rose 31% to $8.1 billion, showcasing improved profitability and effective cost management.
- 5The company generated $11.2 billion in cash flow from operations, a 147% increase year-over-year.
- 6Dell Technologies announced a 20% increase in its quarterly dividend rate, reflecting confidence in future financial performance.
- 7The company repurchased approximately 54 million shares of Class C Common Stock for $6.0 billion during Fiscal 2026, underscoring its commitment to capital return.