DELL Records Strong Q2 2026 Revenue and Raises AI Server Shipment Outlook

Dell (DELL.US) reported a record Q2 FY26 revenue of $29.8 billion, marking a 19% increase year-over-year. Non-GAAP diluted EPS reached a record $2.32, up 19% from the prior year, exceeding the analyst estimate of $2.31. The company also generated robust cash flow from operations of $2.5 billion.

Strong Infrastructure Solutions Group Performance

The Infrastructure Solutions Group (ISG) achieved record revenue of $16.8 billion, representing a substantial 44% year-over-year increase. This growth was primarily driven by the Servers and Networking business, which saw its revenue surge by 69% to $12.9 billion. Demand for AI solutions was a key contributor, with Dell having shipped $10 billion in AI solutions in the first half of FY26, surpassing all shipments in FY25.

Despite the strong overall performance in ISG, Storage revenue experienced a slight decline of 3%, reaching $3.9 billion. The ISG segment reported a record operating income of $1.5 billion, up 14% year-over-year, underscoring its profitability.

Client Solutions Group and Capital Return

The Client Solutions Group (CSG) reported revenue of $12.5 billion, a modest 1% increase year-over-year. Commercial Client revenue grew by 2% to $10.8 billion, while Consumer revenue decreased by 7% to $1.7 billion. CSG operating income was $803 million, down 2% from the prior year.

Dell Technologies demonstrated its commitment to shareholder returns by returning $1.3 billion to shareholders in the second quarter through share repurchases and dividends.

Positive Management Outlook and Guidance

Management provided optimistic guidance for the remainder of fiscal year 2026, driven by continued strong demand for AI solutions. Dell is raising its AI server shipment guidance for FY26 to $20 billion.

For the full fiscal year 2026, revenue is expected to be between $105.0 billion and $109.0 billion, representing a 12% year-over-year increase at the midpoint. Non-GAAP diluted EPS for the full year is projected to be $9.55 at the midpoint, an increase of 17% year-over-year.