Dell Technologies: Fiscal 4Q26 and FY26 Financial Results

Full-Year Summary

• Record full-year revenue of $113.5 billion, up 19% YoY
• Record full-year diluted earnings per share (EPS) of $8.68, up 36% YoY, and record full-year non-GAAP diluted EPS of $10.30, up 27%
• Record full-year cash flow from operations of $11.2 billion
• Announcing a cash dividend increase of 20% and $10 billion increase in share repurchase authorization
• FY27 guidance: Full-year revenue growth of 23% at the midpoint, diluted EPS growth of 33% at the midpoint, and non-GAAP diluted EPS growth of 25% at the midpoint

Fourth-Quarter Summary

• Record revenue of $33.4 billion, up 39% YoY
• Record fourth-quarter diluted EPS of $3.37, up 57% YoY, and record non-GAAP diluted EPS of $3.89, up 45%
• Record cash flow from operations of $4.7 billion

“FY26 was a defining year in our company’s history, with record full-year revenue of $113.5 billion, record EPS, and record cash generation,” said Jeff Clarke, vice chairman and COO, Dell Technologies. “The AI opportunity is transforming our company. We closed more than $64 billion in AI-optimized server orders, shipped more than $25 billion throughout the year, and are entering FY27 with record backlog of $43 billion – powerful proof that our engineering leadership and differentiated AI solutions are winning.”

“We delivered record revenue of $33.4 billion in our fourth quarter, capping a record year for the company,” said David Kennedy, CFO, Dell Technologies. “Our strong execution drove record annual cash flow of more than $11 billion and record capital returned to shareholders of $7.5 billion. We have the portfolio, operating model and growing customer base to exceed our long-term growth targets in FY27, with expected revenue of $140 billion at the midpoint of our range and EPS growth of 25%.”

Infrastructure Solutions Group (ISG)

• Record full-year revenue: $60.8 billion, up 40% YoY
• Record full-year operating income: $7.1 billion, up 27% YoY
• Record quarterly revenue: $19.6 billion, up 73% YoY
• Record quarterly AI-Optimized Servers revenue: $9.0 billion, up 342% YoY
• Record quarterly Traditional Servers and Networking revenue: $5.9 billion, up 27% YoY
• Fourth-quarter Storage revenue: $4.8 billion, up 2% YoY
• Record quarterly operating income: $2.9 billion, up 41% YoY

Client Solutions Group (CSG)

• Full-year revenue: $51.0 billion, up 5% YoY
• Full-year operating income: $2.8 billion, down 5% YoY
• Fourth-quarter revenue: $13.5 billion, up 14% YoY
• Fourth-quarter Commercial Client revenue: $11.6 billion, up 16% YoY
• Fourth-quarter Consumer revenue: $1.9 billion, flat YoY
• Fourth-quarter operating income: $629 million, flat YoY

Capital Return

The company also announced a cash dividend increase of 20% and $10 billion increase in share repurchase authorization. Dell Technologies returned $2.2 billion to shareholders in the fourth quarter through share repurchases and dividends. During the year, the company returned a record $7.5 billion to shareholders and repurchased roughly 54 million shares.

Guidance Summary

• Full-year FY27 revenue expected between $138.0 billion and $142.0 billion, up 23% YoY at the midpoint of $140.0 billion
• Full-year AI-Optimized Servers revenue expected to be roughly $50 billion, up 103% YoY
• Full-year FY27 GAAP diluted EPS expected to be $11.52 at the midpoint, up 33% YoY, and non-GAAP diluted EPS to be $12.90 at the midpoint, up 25%
• First-quarter FY27 revenue expected between $34.7 billion and $35.7 billion, up 51% YoY at the midpoint of $35.2 billion
• First-quarter FY27 GAAP diluted EPS expected to be $2.55 at the midpoint, up 86% YoY, and non-GAAP diluted EPS to be $2.90 at the midpoint, up 87%

Click to enlarge

Click to enlarge