Dell Technologies Inc. (NYSE: DELL) reported first-quarter fiscal 2027 revenue of $43.8 billion on May 28, 2026, up 88% from the same period a year earlier, as demand for AI-optimized servers drove results across its infrastructure business.
The company reported diluted earnings per share of $5.24, up 282% year over year, alongside record first-quarter operating cash flow of $4.1 billion. Dell competes with Hewlett Packard Enterprise and other server manufacturers in the enterprise infrastructure market, where AI-related investment has accelerated materially over the past two years.
#AI Server Revenue Rises 757% to $16.1 Billion
Dell's Infrastructure Solutions Group posted revenue of $29.0 billion for the quarter, up 181% year over year, accounting for the bulk of consolidated growth.
AI-optimized server revenue reached $16.1 billion, up 757% from $1.9 billion in the year-ago period. The company said it booked $24.4 billion in AI orders during the quarter.
Traditional servers and networking revenue rose 92% to $8.5 billion. Storage revenue reached $4.3 billion, up 8%, the highest first-quarter storage result in the company's reported history.
ISG operating income reached $3.1 billion, up 206% year over year, representing 10.5% of ISG revenue.
"We booked $24.4 billion in AI orders and recognized $16.1 billion of AI server revenue. We're increasing our AI server revenue expectations for FY27 to $60 billion, which only goes to show the AI opportunity shows no signs of slowing," Jeff Clarke, vice chairman and chief operating officer, Dell Technologies, said in the earnings release.
#Commercial PC Sales Rise 18% as Client Business Grows
Dell's Client Solutions Group generated revenue of $14.6 billion, up 17% year over year.
Commercial client revenue rose 18% to $13.0 billion, while consumer revenue reached $1.6 billion, up 9%. CSG operating income reached $1.2 billion, up 79%, with operating margin expanding to 8.0% from 5.2% a year earlier.
The commercial PC segment has seen sustained enterprise refresh activity as organizations upgrade hardware in connection with AI workload deployment, though the company did not attribute the growth specifically to that factor.
#Dell Raises Full-Year Revenue Outlook to $167 Billion
For the second quarter of fiscal 2027, Dell said it expects revenue of between $44.0 billion and $45.0 billion, with a midpoint of $44.5 billion, up 49% year over year at the midpoint. The company projected Q2 diluted EPS of $4.48 at the midpoint, up 164% year over year.
For the full fiscal year ending January 2027, Dell raised its revenue outlook to a range of $165.0 billion to $169.0 billion, with a midpoint of $167.0 billion, up 47% year over year at the midpoint. The company said it now expects full-year AI-optimized server revenue of roughly $60 billion, up 144% year over year.
"We entered FY27 with clear momentum, raising our full-year revenue outlook to $167 billion at the midpoint, up nearly 50% year over year," David Kennedy, chief financial officer, Dell Technologies, said in the earnings release.
Dell returned $2.1 billion to shareholders during the quarter through share repurchases and dividends.
The enterprise server market has seen a concentration of investment in AI-related infrastructure, with hyperscale and enterprise customers accelerating procurement of GPU-dense systems. Dell's AI server revenue run rate, if sustained, would place the segment among the largest infrastructure categories the company has operated. The company does not separately disclose the names of customers driving AI server demand.
Management projected full-year diluted EPS of $17.31 at the midpoint, up 99% year over year, though the company noted that risks including adverse economic conditions, competitive pressures, AI demand fluctuations, supply chain dependencies, and foreign currency exposure could affect results. Forward-looking statements are based on current expectations and subject to material change.