Dell Technologies Delivers Second Quarter Fiscal 2027 Financial Results
Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2027 second quarter and provides guidance for its fiscal 2027 third quarter and full year.
• Record diluted earnings per share (EPS) of $6.34, up 273% year over year, and record non-GAAP diluted EPS of $7.04, up 203%
• Full-year FY27 EPS guidance of $24.37 and non-GAAP EPS guidance of $25.50, up 181% and 148% year over year, respectively
“IT environments have shifted from cost centers to value drivers that fuel growth and competitive advantage, and customers are investing accordingly – creating opportunity across our portfolio,” said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. “That’s clearest in our AI server business where we booked a record $60.9 billion in orders, recognized a record $16.4 billion in revenue and exited the quarter with a record $95 billion backlog. We’re seeing broader revenue growth as well, with traditional servers and networking up 122%, storage up 26% and our client solutions up 20% year over year. Our second quarter results underscore the compounding benefits of our competitive advantages, the breadth of our portfolio and the strength of our operating model.”
“In our second quarter, we delivered record revenue of $47 billion, record EPS and a record $4.3 billion returned to shareholders,” said David Kennedy, chief financial officer, Dell Technologies. “Our advantages reinforce one another, and throughout the quarter we used these strengths to drive growth, share gains, profitability and cash generation. With AI momentum accelerating and our opportunity expanding across the portfolio, we’re raising our full-year FY27 revenue outlook by $25 billion to $192 billion, up nearly 70% year over year.”
• Record Traditional Servers and Networking revenue: $10.5 billion, up 122% year over year
• Consumer revenue: $1.8 billion, up 7% year over year 1 • Operating income: $1.1 billion, up 42% year over year
Dell Technologies returned a record $4.3 billion to shareholders in the second quarter through share repurchases and dividends.
Additionally, on Sept. 1 the company’s board of directors declared a quarterly cash dividend of $0.63 per common share, which will be payable on Oct. 30 to shareholders of record as of Oct. 20.
Information about Dell Technologies’ non-GAAP financial measures is provided under “Non-GAAP Financial Measures” below. All comparisons in this press release are year over year unless otherwise noted.
As previously announced, the company will hold a conference call to discuss its performance and financial guidance on Sept. 1 at 3:30 p.m. CST. Prior to the start of the conference call, prepared remarks and a presentation containing additional financial and operating information may be downloaded from investors.delltechnologies.com. The conference call will be presented live over the internet and can be accessed at https://investors.delltechnologies.com/news- events/upcoming-events.
For those unable to listen to the live presentation, the final remarks and presentation with additional financial and operating information will be available following the presentation, and an archived version will be available at the same location for one year.
Dell Technologies (NYSE: DELL) helps organizations and individuals build their digital future and
transform how they work, live and play. The company provides customers with the industry’s broadest
Media: Media.Relations@Dell.com # # # Copyright © 2026 Dell Inc. or its subsidiaries. All Rights Reserved. Dell Technologies, Dell, EMC and Dell EMC are trademarks of Dell Inc. or its subsidiaries. Other trademarks may be trademarks of their respective owners.
This press release presents information about non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP earnings per share – diluted, free cash flow, and adjusted free cash flow, all of which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America (“GAAP”). A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided in the attached tables for each of the fiscal periods indicated.
Statements in this press release that relate to future results and events are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933 and are based on Dell Technologies’ current expectations. In some cases, you can identify these statements by such forward-looking words as “anticipate,” “believe,” “confidence,” “could,” “estimate,” “expect,” “guidance,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will” and “would,” or similar words or expressions that refer to future events or outcomes.
Forward-looking statements include, among others, any statements regarding Dell Technologies’ expectations for third-quarter and full-year fiscal 2027 revenue, GAAP diluted earnings per share and non-GAAP diluted earnings per share, and for full-year fiscal 2027 AI-optimized servers revenue, as well as any other statements regarding Dell Technologies’ prospects and its future operations, financial condition, volumes, cash flows, expenses or other financial items, including management’s plans or strategies and objectives for any of the foregoing and any assumptions, expectations or beliefs underlying any of the foregoing.
Dell Technologies’ results or events in future periods could differ materially from those expressed or implied by these forward-looking statements because of risks, uncertainties, and other factors that include, but are not limited to, the following: adverse global economic conditions; competitive pressures; Dell Technologies’ ability to successfully execute its strategy; Dell Technologies’ relationships with third-party suppliers for products and components; Dell Technologies’ use of single-source or limited-source suppliers; effects on Dell Technologies’ operating performance related to demand for AI solutions; management of Dell Technologies’ AI solutions and use of AI in internal functions and operations; Dell Technologies’ ability to deliver high-quality products, software, and services and to manage solutions and products and services transitions in an effective manner; Dell Technologies’ ability to successfully implement its cost efficiency plans; security incidents, including cyber-attacks; Dell Technologies’ foreign operations and ability to generate substantial non-U.S. net revenue; Dell Technologies’ product, services, customer, and geographic sales mix, and seasonal sales trends; the performance of Dell Technologies’ sales channel partners; Dell Technologies’ ability to successfully execute on strategic initiatives including acquisitions and divestitures; access to the capital markets by Dell Technologies or its customers; weak economic conditions, changing customer mix, and the effect of additional regulation on Dell Technologies’ financial services activities; counterparty default risks; material impairment of the value of 4 goodwill or intangible assets; the loss by Dell Technologies of any contracts for ISG services and solutions and its ability to perform such contracts at their estimated costs; loss by Dell Technologies of government contracts; Dell Technologies’ ability to develop and protect its proprietary intellectual property or obtain licenses to intellectual property developed by others on commercially reasonable and competitive terms; disruptions in Dell Technologies’ infrastructure; Dell Technologies’ ability to hedge effectively its exposure to fluctuations in foreign currency exchange rates and interest rates; adverse legislative or regulatory tax changes, expiration of tax holidays or favorable tax rate structures, or unfavorable outcomes in tax audits and other tax compliance matters; declines in fair value or impairment of portfolio investments; unfavorable results of legal proceedings; evolving and varied expectations and regulatory requirements relating to sustainability issues; the effect of global climate change and related legal, regulatory or market measures; compliance with environmental and safety laws; compliance requirements of anti-corruption laws, economic sanctions and other trade laws, human rights laws, or other laws regulating its international operations; Dell Technologies’ dependence on the services of Michael Dell and key employees; Dell Technologies’ level of indebtedness; and business and financial factors and legal restrictions affecting continuation of Dell Technologies’ quarterly cash dividend policy and dividend rate.
This list of risks, uncertainties, and other factors is not complete. Dell Technologies discusses some of these matters more fully, as well as certain risk factors that could affect Dell Technologies’ business, financial condition, results of operations, and prospects, in its reports filed with the SEC, including Dell Technologies’ annual report on Form 10-K for the fiscal year ended January 30, 2026, quarterly reports on Form 10-Q, and current reports on Form 8-K. These filings are available for review through the SEC’s website at www.sec.gov. Any or all forward-looking statements Dell Technologies makes may turn out to be wrong and can be affected by inaccurate assumptions Dell Technologies might make or by known or unknown risks, uncertainties, and other factors, including those identified in this press release. Accordingly, you should not place undue reliance on the forward-looking statements made in this press release, which speak only as of its date. Dell Technologies does not undertake to update, and expressly disclaims any duty to update, its forward- looking statements, whether as a result of circumstances or events that arise after the date they are made, new information, or otherwise. 5
July 31, 2026 January 30, 2026 ────────────────────────────────────────────────────────────────────────────── ASSETS Current assets: Cash and cash equivalents $ 11,569 $ 11,528 Accounts receivable, net of allowance of 22,918 17,585 $56 and $77 Short-term financing receivables, net of 12,805 8,458 allowance of $186 and $121 Inventories 21,290 10,437 Other current assets 11,965 9,594 Total current assets 80,547 57,602 Property, plant, and equipment, 7,417 6,676 net Long-term investments 2,679 1,730 Long-term financing receivables, net of 7,625 5,822 allowance of $128 and $92 Goodwill 19,448 19,547 Intangible assets, net 4,347 4,533 Other non-current assets 5,330 5,376 Total assets $ 127,393 $ 101,286 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt $ 8,481 $ 7,990 Accounts payable 49,723 33,630 Accrued and other 10,738 8,315 Short-term deferred revenue 14,761 13,334 Total current liabilities 83,703 63,269 Long-term debt 25,985 23,513 Long-term deferred revenue 14,957 13,596 Other non-current liabilities 4,175 3,378 Total liabilities 128,820 103,756 Shareholders’ equity (deficit): Common stock and capital in excess of 9,277 9,457 $0.01 par value Treasury stock at cost -20,010 -14,533 Retained earnings 10,065 3,325 Accumulated other comprehensive -759 -719 loss Total shareholders' equity -1,427 -2,470 (deficit) Total liabilities and shareholders' $ 127,393 $ 101,286 equity
(a) Corporate and other includes VMware Resale and other items that are managed at the corporate level and are not allocated to reportable segments.
(b) Depreciation expense directly attributable to each reportable segment is included in the operating results of each segment. However, the Chief Operating Decision Maker does not evaluate depreciation expense by operating segment, and therefore such expense is not separately presented.
(c) Amortization of intangibles includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction completed in September 2016.
(d) Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date.
(e) Other corporate expenses includes severance expenses, payroll taxes associated with stock-based compensation, incentive charges related to equity investments, transaction-related expenses, and impairment charges.
(f) Income and expenses within Interest and other, net, is not allocated to the reportable segments. Therefore, the company only reports reportable segment operating income. 10
These tables present information about the company’s non-GAAP gross margin, non- GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non- GAAP earnings per share - diluted, free cash flow and adjusted free cash flow, all of which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America (“GAAP”). A detailed discussion of Dell Technologies’ reasons for including certain of these non-GAAP financial measures, the limitations associated with these measures, the items excluded from these measures, and the company’s reason for excluding those items are presented in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures” in the company’s periodic reports filed with the SEC. Dell Technologies encourages investors to review the non-GAAP discussion in these reports in conjunction with the presentation of non-GAAP financial measures. 11
(a) The company’s non-GAAP income tax is calculated using a fixed estimated annual tax rate. 13
(a) The company’s non-GAAP income tax is calculated using a fixed estimated annual tax rate. 14
(a) Capital expenditures and capitalized software development costs, net includes proceeds from sales of facilities, land, and other assets.
(b) Financing receivables represent the operating cash flow impact from the change in financing receivables.
(c) Equipment under operating leases represents the net impact of capital expenditures and depreciation expense for leases and contractually embedded leases identified within flexible consumption arrangements. 15
(a) Amortization of intangibles represents an estimate for acquisitions completed as of July 31, 2026 and does not include estimates for potential acquisitions, if any, during fiscal 2027.
(b) Consists primarily of severance expenses, payroll taxes associated with stock-based compensation, transaction-related expenses, impairment charges, and incentive charges related to equity investments. No estimate is included for severance expense as such expense cannot be reasonably estimated at this time.
(c) No estimates are included for potential fair value adjustments on strategic investments given the potential volatility of either gains or losses on those equity investments.
(d) The fiscal 2027 aggregate adjustment to reconcile non-GAAP income tax expense to GAAP income tax expense is approximately $0.3 billion. The aggregate adjustment for income taxes is the estimated combined income tax effect for the adjustments shown above as well as an adjustment for discrete tax items. The company’s non-GAAP income tax is calculated using a fixed estimated annual tax rate. 16
Full text with the tables
Exhibit 99.1
Dell Technologies Delivers Second Quarter Fiscal 2027 Financial Results
ROUND ROCK, Texas
—
Sept. 1, 2026
—
Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2027
second quarter and provides guidance for its fiscal 2027 third quarter and full
year.
Second-Quarter Summary
• Record revenue of $47.0 billion, up 58% year over year
• Record diluted earnings per share (EPS) of $6.34, up 273% year over year, and
record non-GAAP diluted EPS of $7.04, up 203%
• Cash flow from operations of $2.2 billion
• Full-year FY27 revenue guidance of $192.0 billion, up 69% year over year
• Full-year FY27 EPS guidance of $24.37 and non-GAAP EPS guidance of $25.50, up
181% and 148% year over year, respectively
“IT environments have shifted from cost centers to value drivers that fuel
growth and competitive advantage, and customers are investing accordingly –
creating opportunity across our portfolio,” said Jeff Clarke, vice chairman and
chief operating officer, Dell Technologies. “That’s clearest in our AI server
business where we booked a record $60.9 billion in orders, recognized a record
$16.4 billion in revenue and exited the quarter with a record $95 billion
backlog. We’re seeing broader revenue growth as well, with traditional servers
and networking up 122%, storage up 26% and our client solutions up 20% year over
year. Our second quarter results underscore the compounding benefits of our
competitive advantages, the breadth of our portfolio and the strength of our
operating model.”
“In our second quarter, we delivered record revenue of $47 billion, record EPS
and a record $4.3 billion returned to shareholders,” said David Kennedy, chief
financial officer, Dell Technologies. “Our advantages reinforce one another, and
throughout the quarter we used these strengths to drive growth, share gains,
profitability and cash generation. With AI momentum accelerating and our
opportunity expanding across the portfolio, we’re raising our full-year FY27
revenue outlook by $25 billion to $192 billion, up nearly 70% year over year.”
Infrastructure Solutions Group
(ISG)
• Record revenue: $31.8 billion, up 89% year over year
• Record AI-Optimized Servers revenue: $16.4 billion, up 100% year over year
• Record Traditional Servers and Networking revenue: $10.5 billion, up 122% year
over year
• Record second-quarter Storage revenue: $4.9 billion, up 26% year over year
• Record operating income: $4.8 billion, up 225% year over year
Client Solutions Group
(CSG)
• Revenue: $15.0 billion, up 20% year over year
• Record Commercial Client revenue: $13.2 billion, up 22% year over year
• Consumer revenue: $1.8 billion, up 7% year over year
1
• Operating income: $1.1 billion, up 42% year over year
Capital Return
Dell Technologies returned a record $4.3 billion to shareholders in the second
quarter through share repurchases and dividends.
Additionally, on Sept. 1 the company’s board of directors declared a quarterly
cash dividend of $0.63 per common share, which will be payable on Oct. 30 to
shareholders of record as of Oct. 20.
Guidance Summary
(in billions, except percentages and per share amounts)
Third-Quarter Guidance
Q3FY27 (% Y/Y)
────────────────────────────────────────────────────────
Revenue $ 49.0 81 %
GAAP diluted EPS $ 6.10 168 %
Non-GAAP diluted EPS $ 6.50 151 %
Full-Year Guidance
FY27 Updated (%
FY27 Previous Y/Y)
──────────────────────────────────────────────────────────────────────────────
Revenue $ 167.0 $ 192.0 69 %
AI-Optimized $ 60.0 $ 74.0 200 %
Servers revenue
GAAP diluted $ 17.31 $ 24.37 181 %
EPS
Non-GAAP $ 17.90 $ 25.50 148 %
diluted EPS
2
Second Quarter Fiscal 2027 Financial Results
Thr… July Augu… Six July Aug…
Mon… 31, 1, Mon… 31, 1,
End… 2026 2025 Chan… End… 2026 2025
──────────────────────────────────────────────────────────────────────────────
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sha…
amo…
and
per…
una…
Net $ 46,… $ 29,7… 58% $ 90,8… $ 53,… 71%
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in…
Net $ 4,1… $ 1,164 255% $ 7,571 $ 2,1… 256%
in…
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ca… $ 2,2… $ 2,543 (13… $ 6,306 $ 5,3… 18%
fr…
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—
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ca…
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per $ 7.04 $ 2.32 203% $ 11.90 $ 3.86 208%
sh…
—
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Information about Dell Technologies’ non-GAAP financial measures is provided
under “Non-GAAP Financial Measures” below. All comparisons in this press release
are year over year unless otherwise noted.
Operating Segments Results
Th… Six
Mo… Mo…
En… En…
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31, 1, 31, 1,
20… 20… Ch… 20… 20… Ch…
──────────────────────────────────────────────────────────────────────────────
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3
Conference call information
As previously announced, the company will hold a conference call to discuss its
performance and financial guidance on Sept. 1 at 3:30 p.m. CST. Prior to the
start of the conference call, prepared remarks and a presentation containing
additional financial and operating information may be downloaded from
investors.delltechnologies.com. The conference call will be presented live over
the internet and can be accessed at https://investors.delltechnologies.com/news-
events/upcoming-events.
For those unable to listen to the live presentation, the final remarks and
presentation with additional financial and operating information will be
available following the presentation, and an archived version will be available
at the same location for one year.
About Dell Technologies
Dell Technologies (NYSE: DELL) helps organizations and individuals build their
digital future and
transform how they work, live and play. The company provides customers with the
industry’s broadest
and most innovative technology and services portfolio for the AI era.
Contacts
Investors: Investor_Relations@Dell.com
Media: Media.Relations@Dell.com
# # #
Copyright © 2026 Dell Inc. or its subsidiaries. All Rights Reserved. Dell
Technologies, Dell, EMC and Dell EMC are trademarks of Dell Inc. or its
subsidiaries. Other trademarks may be trademarks of their respective owners.
Non-GAAP Financial Measures:
This press release presents information about non-GAAP gross margin, non-GAAP
operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP
earnings per share – diluted, free cash flow, and adjusted free cash flow, all
of which are non-GAAP financial measures provided as a supplement to the results
provided in accordance with generally accepted accounting principles in the
United States of America (“GAAP”). A reconciliation of each non-GAAP financial
measure to the most directly comparable GAAP financial measure is provided in
the attached tables for each of the fiscal periods indicated.
Special Note on Forward-Looking Statements:
Statements in this press release that relate to future results and events are
forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934 and Section 27A of the Securities Act of 1933 and are based
on Dell Technologies’ current expectations. In some cases, you can identify
these statements by such forward-looking words as “anticipate,” “believe,”
“confidence,” “could,” “estimate,” “expect,” “guidance,” “intend,” “may,”
“objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,”
“will” and “would,” or similar words or expressions that refer to future events
or outcomes.
Forward-looking statements include, among others, any statements regarding Dell
Technologies’ expectations for third-quarter and full-year fiscal 2027 revenue,
GAAP diluted earnings per share and non-GAAP diluted earnings per share, and for
full-year fiscal 2027 AI-optimized servers revenue, as well as any other
statements regarding Dell Technologies’ prospects and its future operations,
financial condition, volumes, cash flows, expenses or other financial items,
including management’s plans or strategies and objectives for any of the
foregoing and any assumptions, expectations or beliefs underlying any of the
foregoing.
Dell Technologies’ results or events in future periods could differ materially
from those expressed or implied by these forward-looking statements because of
risks, uncertainties, and other factors that include, but are not limited to,
the following: adverse global economic conditions; competitive pressures; Dell
Technologies’ ability to successfully execute its strategy; Dell Technologies’
relationships with third-party suppliers for products and components; Dell
Technologies’ use of single-source or limited-source suppliers; effects on Dell
Technologies’ operating performance related to demand for AI solutions;
management of Dell Technologies’ AI solutions and use of AI in internal
functions and operations; Dell Technologies’ ability to deliver high-quality
products, software, and services and to manage solutions and products and
services transitions in an effective manner; Dell Technologies’ ability to
successfully implement its cost efficiency plans; security incidents, including
cyber-attacks; Dell Technologies’ foreign operations and ability to generate
substantial non-U.S. net revenue; Dell Technologies’ product, services,
customer, and geographic sales mix, and seasonal sales trends; the performance
of Dell Technologies’ sales channel partners; Dell Technologies’ ability to
successfully execute on strategic initiatives including acquisitions and
divestitures; access to the capital markets by Dell Technologies or its
customers; weak economic conditions, changing customer mix, and the effect of
additional regulation on Dell Technologies’ financial services activities;
counterparty default risks; material impairment of the value of
4
goodwill or intangible assets; the loss by Dell Technologies of any contracts
for ISG services and solutions and its ability to perform such contracts at
their estimated costs; loss by Dell Technologies of government contracts; Dell
Technologies’ ability to develop and protect its proprietary intellectual
property or obtain licenses to intellectual property developed by others on
commercially reasonable and competitive terms; disruptions in Dell Technologies’
infrastructure; Dell Technologies’ ability to hedge effectively its exposure to
fluctuations in foreign currency exchange rates and interest rates; adverse
legislative or regulatory tax changes, expiration of tax holidays or favorable
tax rate structures, or unfavorable outcomes in tax audits and other tax
compliance matters; declines in fair value or impairment of portfolio
investments; unfavorable results of legal proceedings; evolving and varied
expectations and regulatory requirements relating to sustainability issues; the
effect of global climate change and related legal, regulatory or market
measures; compliance with environmental and safety laws; compliance requirements
of anti-corruption laws, economic sanctions and other trade laws, human rights
laws, or other laws regulating its international operations; Dell Technologies’
dependence on the services of Michael Dell and key employees; Dell Technologies’
level of indebtedness; and business and financial factors and legal restrictions
affecting continuation of Dell Technologies’ quarterly cash dividend policy and
dividend rate.
This list of risks, uncertainties, and other factors is not complete. Dell
Technologies discusses some of these matters more fully, as well as certain risk
factors that could affect Dell Technologies’ business, financial condition,
results of operations, and prospects, in its reports filed with the SEC,
including Dell Technologies’ annual report on Form 10-K for the fiscal year
ended January 30, 2026, quarterly reports on Form 10-Q, and current reports on
Form 8-K. These filings are available for review through the SEC’s website at
www.sec.gov. Any or all forward-looking statements Dell Technologies makes may
turn out to be wrong and can be affected by inaccurate assumptions Dell
Technologies might make or by known or unknown risks, uncertainties, and other
factors, including those identified in this press release. Accordingly, you
should not place undue reliance on the forward-looking statements made in this
press release, which speak only as of its date. Dell Technologies does not
undertake to update, and expressly disclaims any duty to update, its forward-
looking statements, whether as a result of circumstances or events that arise
after the date they are made, new information, or otherwise.
5
DELL TECHNOLOGIES INC.
Condensed Consolidated Statements of Income and Related Financial Highlights
(in millions, except per share amounts and percentages; unaudited)
Th… Ju… Au… Six J… A…
Mo… 31, 1, Mo… 3… 1,
En… 20… 20… Ch… En… 2… 2…
──────────────────────────────────────────────────────────────────────────────
N…
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S… 5,… 5,… —% 1… 1… —%
T…
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D… 652 686 (5… 654 694 (…
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m…
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a…
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d…
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i…
t…
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r…
Amounts are based on underlying data and may not visually foot due to rounding.
6
DELL TECHNOLOGIES INC.
Condensed Consolidated Statements of Financial Position
(in millions; unaudited)
July 31, 2026 January 30, 2026
──────────────────────────────────────────────────────────────────────────────
ASSETS
Current assets:
Cash and cash equivalents $ 11,569 $ 11,528
Accounts receivable, net of
allowance of 22,918 17,585
$56 and $77
Short-term financing receivables,
net of 12,805 8,458
allowance of $186 and $121
Inventories 21,290 10,437
Other current assets 11,965 9,594
Total current assets 80,547 57,602
Property, plant, and equipment, 7,417 6,676
net
Long-term investments 2,679 1,730
Long-term financing receivables,
net of 7,625 5,822
allowance of $128 and $92
Goodwill 19,448 19,547
Intangible assets, net 4,347 4,533
Other non-current assets 5,330 5,376
Total assets $ 127,393 $ 101,286
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Short-term debt $ 8,481 $ 7,990
Accounts payable 49,723 33,630
Accrued and other 10,738 8,315
Short-term deferred revenue 14,761 13,334
Total current liabilities 83,703 63,269
Long-term debt 25,985 23,513
Long-term deferred revenue 14,957 13,596
Other non-current liabilities 4,175 3,378
Total liabilities 128,820 103,756
Shareholders’ equity (deficit):
Common stock and capital in
excess of 9,277 9,457
$0.01 par value
Treasury stock at cost -20,010 -14,533
Retained earnings 10,065 3,325
Accumulated other comprehensive -759 -719
loss
Total shareholders' equity -1,427 -2,470
(deficit)
Total liabilities and
shareholders' $ 127,393 $ 101,286
equity
7
DELL TECHNOLOGIES INC.
Condensed Consolidated Statements of Cash Flows
(in millions; unaudited)
Three July Six July
Months 31, August Months 31, August
Ended 2026 1, 2025 Ended 2026 1, 2025
──────────────────────────────────────────────────────────────────────────────
Cash
flows
from
opera…
activ…
Net $ 4,133 $ 1,164 $ 7,571 $ 2,129
income
Adjus…
to
recon…
net
income
to -1,908 1,379 -1,265 3,210
net
cash
provi…
by
opera…
activ…
Change
in
cash 2,225 2,543 6,306 5,339
from
opera…
activ…
Cash
flows
from
inves…
activ…
Purch…
of -211 -28 -335 -125
inves…
Matur…
and
sales 89 28 90 59
of
inves…
Capit…
expen…
and
capit… -1,239 -675 -2,202 -1,243
softw…
devel…
costs
Dives…
of
busin… — — — 533
and
asset…
net
Other 24 20 43 33
Change
in
cash -1,337 -655 -2,404 -743
from
inves…
activ…
Cash
flows
from
finan…
activ…
Repur…
of -3,796 -940 -5,424 -2,920
common
stock
Repur…
of
common
stock -18 -5 -555 -357
for
emplo…
tax
withh…
Payme…
of
divid… -405 -366 -869 -762
and
divid…
equiv…
Proce…
from 4,386 962 6,851 7,270
debt
Repay…
of -1,017 -1,114 -3,805 -3,424
debt
Debt-…
costs
and -32 -2 -34 -35
other,
net
Change
in
cash -882 -1,465 -3,836 -228
from
finan…
activ…
Effect
of
excha…
rate
chang…
on -22 15 -35 104
cash,
cash
equiv…
and
restr…
cash
Change
in
cash,
cash -16 438 31 4,472
equiv…
and
restr…
cash
Cash,
cash
equiv…
and
restr… 11,753 7,853 11,706 3,819
cash
at
begin…
of the
period
Cash,
cash
equiv…
and
restr… $ 11,737 $ 8,291 $ 11,737 $ 8,291
cash
at end
of the
period
8
DELL TECHNOLOGIES INC.
Segment Information
(in millions, except percentages; unaudited; continued on next page)
Th… Ju… Au… Six Ju… Aug…
Mo… 31, 1, Mo… 31, 1,
En… 20… 20… Ch… En… 20… 2025
──────────────────────────────────────────────────────────────────────────────
I…
S…
G…
(…
N…
r…
A… $ 16… $ 8,… 10… $ 32… $ 10,… 22…
S…
T…
S… 10… 4,… 12… 19… 9,1… 10…
a…
N…
S… 4,… 3,… 26% 9,… 7,8… 17%
T…
I… $ 31… $ 16… 89% $ 60… $ 27,… 12…
n…
r…
O…
i…
I…
o… $ 4,… $ 1,… 22… $ 7,… $ 2,4… 21…
i…
%
of
I… 15… % 8.8 % 12… % 9.1 %
n…
r…
%
of
t…
r… 81 % 65 % 77 % 63 %
s…
o…
i…
C…
S…
G…
(…
N…
r…
C… $ 13… $ 10… 22% $ 26… $ 21,… 20%
C… 1,… 1,… 7% 3,… 3,1… 8%
T…
C… $ 15… $ 12… 20% $ 29… $ 25,… 19%
n…
r…
O…
i…
C…
o… $ 1,… $ 803 42% $ 2,… $ 1,4… 59%
i…
%
of
C… 7.6 % 6.4 % 7.8 % 5.8 %
n…
r…
%
of
t…
r… 19 % 35 % 23 % 37 %
s…
o…
i…
Amounts are based on underlying data and may not visually foot due to rounding.
9
DELL TECHNOLOGIES INC.
Segment Information
(in millions; unaudited; continued)
Three July Six July
Months 31, August Months 31, August
Ended 2026 1, 2025 Ended 2026 1, 2025
──────────────────────────────────────────────────────────────────────────────
Recon…
to
conso…
net
reven…
Repor…
segme… $ 46,816 $ 29,303 $ 90,434 $ 52,129
net
reven…
Corpo…
and 155 473 379 1,025
other
(a)
Total
conso… $ 46,971 $ 29,776 $ 90,813 $ 53,154
net
reven…
Recon…
to
conso…
opera…
incom…
Repor…
segme…
opera… $ 5,923 $ 2,273 $ 10,148 $ 3,924
income
(b)
Corpo…
and 6 11 16 26
other
(a)
Amort…
of -96 -125 -193 -251
intan…
(c)
Stock…
compe… -184 -179 -373 -369
expen…
(d)
Other
corpo… -264 -207 -557 -392
expen…
(e)
Total
conso…
opera… $ 5,385 $ 1,773 $ 9,041 $ 2,938
income
(f)
_________________
(a) Corporate and other includes VMware Resale and other items that are managed
at the corporate level and are not allocated to reportable segments.
(b) Depreciation expense directly attributable to each reportable segment is
included in the operating results of each segment. However, the Chief Operating
Decision Maker does not evaluate depreciation expense by operating segment, and
therefore such expense is not separately presented.
(c) Amortization of intangibles includes non-cash purchase accounting
adjustments that are primarily related to the EMC merger transaction completed
in September 2016.
(d) Stock-based compensation expense consists of equity awards granted based on
the estimated fair value of those awards at grant date.
(e) Other corporate expenses includes severance expenses, payroll taxes
associated with stock-based compensation, incentive charges related to equity
investments, transaction-related expenses, and impairment charges.
(f) Income and expenses within Interest and other, net, is not allocated to the
reportable segments. Therefore, the company only reports reportable segment
operating income.
10
SUPPLEMENTAL SELECTED NON-GAAP FINANCIAL MEASURES
These tables present information about the company’s non-GAAP gross margin, non-
GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-
GAAP earnings per share - diluted, free cash flow and adjusted free cash flow,
all of which are non-GAAP financial measures provided as a supplement to the
results provided in accordance with generally accepted accounting principles in
the United States of America (“GAAP”). A detailed discussion of Dell
Technologies’ reasons for including certain of these non-GAAP financial
measures, the limitations associated with these measures, the items excluded
from these measures, and the company’s reason for excluding those items are
presented in “Management’s Discussion and Analysis of Financial Condition and
Results of Operations — Non-GAAP Financial Measures” in the company’s periodic
reports filed with the SEC. Dell Technologies encourages investors to review the
non-GAAP discussion in these reports in conjunction with the presentation of
non-GAAP financial measures.
11
DELL TECHNOLOGIES INC.
Selected Financial Measures
(in millions, except per share amounts and percentages; unaudited)
Th… Ju… Au… Six Ju… Aug…
Mo… 31, 1, Mo… 31, 1,
En… 20… 20… Ch… En… 20… 2025
──────────────────────────────────────────────────────────────────────────────
N… $ 46… $ 29… 58% $ 90… $ 53,… 71%
r…
N…
g… $ 9,… $ 5,… 78% $ 17… $ 10,… 68%
m…
%
of 21… % 18… % 19… % 20.0 %
n…
r…
N…
o… $ 4,… $ 3,… 22% $ 7,… $ 6,6… 15%
e…
%
of 8.5 % 11… % 8.5 % 12.6 %
n…
r…
N…
o… $ 5,… $ 2,… 16… $ 10… $ 3,9… 15…
i…
%
of 12… % 7.7 % 11… % 7.4 %
n…
r…
N…
n… $ 4,… $ 1,… 18… $ 7,… $ 2,6… 19…
i…
%
of 9.8 % 5.3 % 8.6 % 5.0 %
n…
r…
N…
e…
p… $ 7.… $ 2.… 20… $ 11… $ 3.86 20…
s…
—
d…
Amounts are based on underlying data and may not visually foot due to rounding.
12
DELL TECHNOLOGIES INC.
Reconciliation of Selected Non-GAAP Financial Measures
(in millions, except percentages; unaudited; continued on next page)
Thr… July Augu… Six July Augu…
Mon… 31, 1, Mont… 31, 1,
End… 2026 2025 Cha… Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Gr… $ 9,8… $ 5,447 80% $ 17,… $ 10,3… 70%
ma…
No…
ad…
Am…
of 31 39 57 80
in…
St…
co… 43 37 87 76
ex…
Ot…
co… 25 49 120 89
ex…
No…
gr… $ 9,9… $ 5,572 78% $ 17,… $ 10,6… 68%
ma…
Op… $ 4,4… $ 3,674 21% $ 8,5… $ 7,446 15%
ex…
No…
ad…
Am…
of -65 -86 -136 -171
in…
St…
co… -141 -142 -286 -293
ex…
Ot…
co… -239 -158 -437 -303
ex…
No…
op… $ 4,0… $ 3,288 22% $ 7,7… $ 6,679 15%
ex…
Op… $ 5,3… $ 1,773 204% $ 9,0… $ 2,938 208%
in…
No…
ad…
Am…
of 96 125 193 251
in…
St…
co… 184 179 373 369
ex…
Ot…
co… 264 207 557 392
ex…
No…
op… $ 5,9… $ 2,284 160% $ 10,… $ 3,950 157%
in…
Net $ 4,1… $ 1,164 255% $ 7,5… $ 2,129 256%
in…
No…
ad…
Am…
of 96 125 193 251
in…
St…
co… 184 179 373 369
ex…
Ot…
co… 260 200 548 142
ex…
Fa…
va…
ad… -73 -4 -704 -21
on
eq…
in…
Ag…
ad…
for -9 -73 -200 -193
in…
ta…
(a)
No…
net $ 4,5… $ 1,591 189% $ 7,7… $ 2,677 191%
in…
____________________
(a) The company’s non-GAAP income tax is calculated using a fixed estimated
annual tax rate.
13
DELL TECHNOLOGIES INC.
Reconciliation of Selected Non-GAAP Financial Measures
(unaudited; continued)
Thr… July Aug… Six Ju… Aug…
Mon… 31, 1, Mon… 31, 1,
End… 2026 2025 Ch… End… 20… 2025 Ch…
──────────────────────────────────────────────────────────────────────────────
Ea…
per
sh… $ 6.34 $ 1.70 273 % $ 11… $ 3.07 277 %
—
di…
No…
ad…
Am…
of 0.15 0.19 0.… 0.36
in…
St…
co… 0.28 0.26 0.… 0.53
ex…
Ot…
co… 0.39 0.29 0.… 0.21
ex…
Fa…
va…
ad… -0.… -0.… -1… -0.…
on
eq…
in…
Ag…
ad…
for -0.… -0.… -0… -0.…
in…
ta…
(a)
No…
ea…
per $ 7.04 $ 2.32 203 % $ 11… $ 3.86 208 %
sh…
—
di…
____________________
(a) The company’s non-GAAP income tax is calculated using a fixed estimated
annual tax rate.
14
DELL TECHNOLOGIES INC.
Reconciliation of Selected Non-GAAP Financial Measures
(in millions, except percentages; unaudited; continued)
Thr… July Aug… Six Ju… Aug…
Mon… 31, 1, Mon… 31, 1,
End… 2026 2025 Ch… End… 20… 2025 Ch…
──────────────────────────────────────────────────────────────────────────────
Ca…
fl… $ 2,2… $ 2,5… -13 % $ 6,… $ 5,3… 18 %
fr…
op…
No…
ad…
Ca…
ex…
and
ca…
so… -1,… -675 -2… -1,…
de…
co…
net
(a)
Fr…
ca… $ 986 $ 1,8… -47 % $ 4,… $ 4,0… — %
fl…
Fr…
ca… $ 986 $ 1,8… -47 % $ 4,… $ 4,0… — %
fl…
No…
ad…
Fi…
re… 6,6… 592 6,… 569
(b)
Eq…
un…
op… 496 58 806 85
le…
(c)
Ad…
fr… $ 8,1… $ 2,5… 224 % $ 11… $ 4,7… 138 %
ca…
fl…
____________________
(a) Capital expenditures and capitalized software development costs, net
includes proceeds from sales of facilities, land, and other assets.
(b) Financing receivables represent the operating cash flow impact from the
change in financing receivables.
(c) Equipment under operating leases represents the net impact of capital
expenditures and depreciation expense for leases and contractually embedded
leases identified within flexible consumption arrangements.
15
DELL TECHNOLOGIES INC.
Reconciliation of Non-GAAP Financial Measures in Summary Guidance
(unaudited)
Three Fiscal
Months October Year January
Ending 30, 2026 Ending 29, 2027
──────────────────────────────────────────────────────────────────────────────
Previous Updated
Earnings
per $ 6.10 $ 17.31 $ 24.37
share —
diluted
Non-GAAP
adjustm…
Amortiz…
of 0.15 0.59 0.60
intangi…
(a)
Stock-b… 0.29 1.16 1.16
compens…
Other
corpora… — 0.45 0.84
expenses
(b)
Fair
value
adjustm…
on — -0.97 -1.08
equity
investm…
(c)
Aggrega…
adjustm…
for -0.04 -0.64 -0.39
income
taxes
(d)
Non-GAAP
earnings
per $ 6.50 $ 17.90 $ 25.50
share —
diluted
____________________
(a) Amortization of intangibles represents an estimate for acquisitions
completed as of July 31, 2026 and does not include estimates for potential
acquisitions, if any, during fiscal 2027.
(b) Consists primarily of severance expenses, payroll taxes associated with
stock-based compensation, transaction-related expenses, impairment charges, and
incentive charges related to equity investments. No estimate is included for
severance expense as such expense cannot be reasonably estimated at this time.
(c) No estimates are included for potential fair value adjustments on strategic
investments given the potential volatility of either gains or losses on those
equity investments.
(d) The fiscal 2027 aggregate adjustment to reconcile non-GAAP income tax
expense to GAAP income tax expense is approximately $0.3 billion. The aggregate
adjustment for income taxes is the estimated combined income tax effect for the
adjustments shown above as well as an adjustment for discrete tax items. The
company’s non-GAAP income tax is calculated using a fixed estimated annual tax
rate.
16