Dell Technologies Earnings Call Transcripts
Fiscal Year 2026
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AI-driven revenue is surging, with robust enterprise adoption and strong supply chain management supporting 25% earnings growth guidance. Strategic supplier relationships, agile pricing, and internal AI deployment drive productivity and margin resilience.
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Record AI server demand and robust core business growth drive forecasts of over 20% revenue and 25% EPS growth for fiscal 2027. Operational efficiency, margin expansion from IP storage, and disciplined capital allocation underpin confidence in continued outperformance.
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Record FY26 results with 19% revenue and 27% EPS growth, driven by surging AI demand and strong execution. FY27 guidance calls for 23% revenue growth, $50B in AI revenue, and continued margin discipline amid tight supply and rising input costs.
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Record Q3 revenue and EPS driven by strong AI server demand, robust ISG and CSG growth, and disciplined cost management. AI orders and backlog reached new highs, with continued momentum expected into Q4 and FY2026.
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Record Q2 revenue and EPS were driven by strong AI server demand and operational efficiencies. Full-year guidance was raised for both revenue and EPS, with profitability expected to improve in the second half, especially in AI and storage.
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Revenue grew 5% to $23.4B with record AI server demand and a $14.4B backlog. EPS rose 17% to $1.55, and Q2 revenue is guided up 16% at midpoint. Full-year revenue guidance is reiterated, and EPS guidance is raised, driven by strong ISG and AI momentum.
Fiscal Year 2025
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Revenue and EPS grew strongly, driven by AI and infrastructure demand, with record AI orders and a growing backlog. Differentiation comes from engineering, integrated solutions, and supply chain strength, supporting premium pricing and margin stability. Storage and server upgrades continue, while the PC market faces headwinds but retains upgrade potential.
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Raised long-term growth targets to 7%-9% revenue and 15%+ EPS, driven by AI adoption and operational leverage. Committed to returning over 80% of free cash flow to shareholders and expanding in both infrastructure and PC markets. Differentiation is anchored in engineering, rapid deployment, and robust customer relationships.
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ISG delivered strong revenue and margin growth, driven by record AI demand, robust product innovation, and effective supply chain management. Tier two CSPs lead current growth, while sovereign and enterprise segments are expanding. Strategic focus on storage, networking, and integrated solutions positions the company as a leader in the AI-driven technology transition.
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AI is reshaping industries through decentralized, edge-driven innovation, with enterprises like JPMorgan Chase and Lowe's leveraging Dell infrastructure for scalable, secure, and efficient AI adoption. New product launches and partnerships, especially with NVIDIA, are accelerating this transformation.
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Strong growth in both CSG and ISG, record ISG margins, and robust AI momentum set the stage for 8% revenue and 14% EPS growth guidance. AI and storage drive profitability, while operational efficiency and capital returns remain top priorities.
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FY25 delivered 8% revenue and 10% EPS growth, with strong ISG and AI momentum, record capital returns, and operating leverage from cost reductions. FY26 guidance calls for 8% revenue growth, $15B+ in AI server shipments, and continued margin pressure from competition and AI mix.
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Q3 revenue rose 10% to $24.4B, led by ISG's 34% growth and strong AI server demand. EPS increased 14%, but gross margin declined due to mix and pricing. Q4 guidance reflects continued ISG strength, a delayed PC refresh, and slightly lower AI server shipments.
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Q2 revenue rose 9% to $25B, driven by record ISG and AI server growth, with EPS up 9% and strong cash flow. FY25 guidance calls for 10% revenue growth, ISG up ~30%, and continued AI momentum, though gross margin will decline due to mix and competition.
Fiscal Year 2024
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ISG is experiencing robust growth in AI-optimized servers, with a rapidly expanding pipeline and strong demand across sectors. The division is focused on innovation, vertical integration in liquid cooling, and regaining share in storage, with consistent margins and a broad, differentiated portfolio.
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AI infrastructure is driving rapid growth, with custom engineering and integrated solutions leading to premium margins and market share gains. Enterprise AI adoption is accelerating, supported by data gravity and new use cases, while a delayed PC refresh cycle is expected to rebound with the Windows 10 transition.
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Record attendance at the conference highlighted industry convergence and strong AI-driven growth. AI is rapidly expanding market opportunities, with enterprise adoption accelerating and significant productivity gains expected. Multi-cloud strategies and a major PC refresh cycle are also shaping the landscape.
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Enhanced governance and ESG integration drive progress in renewable energy, circularity, and digital inclusion. AI's energy impact is addressed through right-sized solutions and sustainable data centers, while absolute emissions goals and regulatory alignment ensure accountability.