Dell Technologies is scheduled to report Q1 FY27 results on May 28 around 4:05 PM ET. The company is coming off FY26, when Q4 revenue reached $33.38B, up 40.2% year over year, and non-GAAP EPS was $3.89 versus $3.51 expected. AI-optimized server revenue rose 342% to $8.95B, and management ended the year with a $43B AI backlog. The board increased the dividend by 20% and added $10B to the buyback, though GAAP gross margin fell to 20.2% from 23.7% due to AI server mix. For FY27, Dell guided to about $50B in AI server revenue, and investors will monitor AI backlog, ISG revenue, and margin trends, along with PC performance.
"Dell closed FY26 with a strong quarter. Q4 revenue hit $33.38B, up 40.2% year over year, topping the $31.69B estimate. Non-GAAP EPS landed at $3.89 versus $3.51 expected, beating expectations. The big headline was that AI-optimized server revenue jumped 342% to $8.95B, and management exited the year with a $43B AI backlog."
"Investors were also pleased with Dell's capital returns. The board lifted the dividend 20% and added $10B to the buyback. However, GAAP gross margin compressed to 20.2% from 23.7% on the AI server mix. Shares have responded anyway, climbing 144.42% year to date and 172% over the past year."
"Dell entered FY27 with $43B in committed AI orders and guided to roughly $50B in AI server revenue for the full year, more than doubling. Any sign that hyperscaler and sovereign demand are still pulling forward keeps the bull case intact. Polymarket has a 95% probability of an earnings beat, with traders pricing in 75.5% odds that ISG revenue clears $22.5B."
"The Q4 gross margin slide reflects a lower take rate on AI gear, and investors will assess whether services, attach, storage, and traditional server pricing pull blended margin back toward the FY26 average. Storage was the weak link last quarter at just +2%, while traditional servers and networking grew 27%."
Read at 24/7 Wall St.
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