Summary
Dell Technologies Inc. reported a 5% increase in total net revenue for the first quarter of Fiscal Year 2026, reaching $23.4 billion, driven by a strong performance in its Infrastructure Solutions Group (ISG) and, to a lesser extent, its Client Solutions Group (CSG). The ISG segment saw a significant 12% revenue jump, largely fueled by demand for AI-optimized servers and continued strength in storage solutions. The CSG segment experienced a 5% increase in revenue, primarily from commercial offerings, though consumer demand saw a decline. Profitability showed robust improvement, with operating income increasing by 21% year-over-year to $1.2 billion. This was supported by an increase in ISG operating income and disciplined cost management across the company. Despite a slight decrease in overall net income due to higher income tax expenses, non-GAAP net income saw a healthy 13% increase. The company also demonstrated strong cash flow generation, with cash from operations increasing significantly to $2.8 billion, bolstered by working capital dynamics and strong AI-driven demand. Dell Technologies continues to focus on returning capital to shareholders through share repurchases and dividends, with substantial remaining authorization for its stock repurchase program.
Financial Highlights
54 data points| Revenue | $23.38B |
| Cost of Revenue | $18.44B |
| Gross Profit | $4.94B |
| R&D Expenses | $808.00M |
| SG&A Expenses | $2.96B |
| Operating Expenses | $3.77B |
| Operating Income | $1.17B |
| Net Income | $965.00M |
| EPS (Basic) | $1.39 |
| EPS (Diluted) | $1.37 |
| Shares Outstanding (Basic) | 692.00M |
| Shares Outstanding (Diluted) | 702.00M |
Key Highlights
- 1Total net revenue increased by 5% to $23.4 billion, driven by ISG and CSG growth.
- 2Infrastructure Solutions Group (ISG) revenue grew 12% to $10.3 billion, powered by AI-optimized servers and storage solutions.
- 3Client Solutions Group (CSG) revenue increased 5% to $12.5 billion, primarily due to commercial offerings.
- 4Operating income surged 21% to $1.2 billion, reflecting strong ISG performance and cost management.
- 5Net income slightly decreased to $965 million, impacted by higher income tax expenses, but non-GAAP net income rose 13% to $1.1 billion.
- 6Cash flow from operations significantly increased to $2.8 billion, benefiting from working capital improvements.
- 7The company repurchased approximately $2.0 billion of Class C Common Stock during the quarter.