Dell Stock Surged 30% On Record Q1 Earnings And AI Orders

Catenaa, Friday, May 29, 2026- Dell Technologies Stock surged by 30% on Friday after the company reported a first-quarter revenue jump of 88% compared to last year, beating the market estimates.

Revenues jumped 88% from the year-ago quarter to $43.84 billion and topped the consensus mark by 23.62%.

Fiscal 2027, non-GAAP earnings of $4.86 per share, Dell reported earnings of $1.55 in the year-ago quarter.

Results reflected broad-based demand across the portfolio, with AI infrastructure remaining the standout. In the reported quarter, Dell Technologies booked $24.4 billion in AI orders, highlighting customers’ urgency to secure supply for large-scale deployments.

Infrastructure Solutions Group (ISG) delivered the most powerful growth engine in the reported quarter, as customers expanded capacity for both AI and traditional workloads. ISG revenues surged 181% year over year to $29.01 billion, supported by momentum across all major categories. 

Within ISG, AI-optimized server revenues surged to $16.13 billion, up 757% year over year, reflecting continued strength in accelerated computing demand. 

Traditional servers and networking revenues rose 92% to $8.54 billion, while storage revenues increased 8% to $4.33 billion, helped by steady execution across the Dell IP portfolio.

Client Solutions Group (CSG) also contributed to the broad-based nature of the quarter, with revenues rising 17% year over year to $14.61 billion. Commercial revenue grew 18% year over year to $13.02 billion, supported by large enterprise refresh activity and improved mix.

Consumer revenue increased 9% year over year to $1.59 billion, with demand aided by strength in gaming.

The reported quarter showed meaningful operating leverage as Dell Technologies scaled through a sharply higher revenue base. Non-GAAP gross margin rate was 18.1% (down from 21.6% reported in the year-ago quarter), with the company pointing to AI mix as a key driver of the year-over-year shift in margin rate.

At the same time, operating discipline remained evident in expense efficiency. Non-GAAP operating expenses were 8.4% of revenue (down from 14.5% reported in the year-ago quarter), supporting a non-GAAP operating income rate of 9.7% (expanded 260 bps year over year) and underscoring stronger scale in the model despite a challenging supply environment.

ISG operating income was $3.06 billion (up 206% year over year) with segment operating margin expanding 80 basis points (bps) to 10.5%. CSG operating income was $1.17 billion (up 79% year over year), translating to an 8% operating margin (up 280 bps), reflecting improved profitability versus the year-ago quarter.

Cash generation remained a key highlight of the quarter, reflecting both profitability and working-capital dynamics.

 Cash flow from operations was $4.08 billion, while adjusted free cash flow came in at $3.17 billion.

Dell ended the quarter with $14.1 billion in cash and investments and returned $2.1 billion to shareholders. Capital returns included repurchasing 11 million shares at an average price of $147 per share and paying a dividend of approximately $0.63 per share.

Management’s outlook suggests demand remains durable, with customers continuing to prioritize infrastructure needs and proactively lock in supply.

 For the second quarter of fiscal 2027, Dell expects revenues between $44 billion and $45 billion, with non-GAAP earnings of $4.80 (plus or minus 10 cents).

For fiscal 2027, Dell Technologies expects revenues between $165 billion and $169 billion and is guided to non-GAAP earnings of $17.90 per share (plus or minus 25 cents). 

The company also increased its FY27 AI-optimized server revenue expectation to roughly $60 billion, signaling confidence in continued AI infrastructure momentum through the year.