Dell Technologies (DELL) Surges on Strong Earnings: $23.4B Revenue Marks 5% Growth

Dell just flexed its enterprise muscle—posting a 5% revenue jump to $23.4B in Q1. Investors cheered, pushing shares up as legacy hardware proves it’s not dead yet.

Key drivers? Hybrid cloud demand and that sweet, sweet corporate upgrade cycle. Because nothing says ’productivity’ like CFOs panic-buying servers before fiscal year-end.

Bonus cynicism: Another quarter of ’beat and raise’—until the next supply chain hiccup sends tech valuations into the shredder.

TLDR

• Dell stock at $112.16 after Q1 earnings report.

• Revenue grew 5% to $23.4 billion, with EPS up 17%.

• AI server orders hit $12.1 billion, surpassing annual shipments.

• Consumer revenue fell 19%, pressuring margins.

• Dell raised its annual profit forecast on AI demand strength.

Dell Technologies Inc. (NYSE: DELL) traded at $112.16 as of 11:10 AM EDT, down 1.29%, after releasing its Q1 2026 earnings on May 29, 2025.

Dell Technologies Inc. (DELL)

The company reported a 5% rise in revenue to $23.4 billion, driven by surging demand for AI-optimized servers and a strong performance in its Infrastructure Solutions Group (ISG). Earnings per share grew 17% year-over-year to $1.55, far outpacing revenue growth, and Dell raised its full-year profit outlook, boosting investor sentiment.

Dell Technologies $DELL
Q1Earnings
EPS $1.55 vs $1.69 ❌
Revenue $23.38B vs $23.19B ✅(+5.3% Y/Y)
Q2 Guidance
EPS $2.25 vs $2.11✅
Revenue $28.5B – $29.5B vs 25.26B✅
FY26
EPS $9.40 vs $9.17 ✅
Revenue $101.0B – $105.0B vs $102.97B ✅ pic.twitter.com/UROhaI7k9y

— 𝐓🌏️投資/決算 (@dangerousteee) May 29, 2025

Strong AI Momentum and ISG Growth

A standout from the quarter was Dell’s AI server business. AI server orders totaled $12.1 billion in Q1, already exceeding the company’s total AI-related shipments for fiscal 2025. Major clients, including Elon Musk’s AI startup xAI and CoreWeave, have fueled this growth. Dell’s Infrastructure Solutions Group (ISG) saw revenue climb 12% year-over-year to $10.3 billion, underscoring its strong position in AI infrastructure, aided by key partnerships with Nvidia and Google.

The company also announced its involvement in powering the Doudna supercomputer, using Dell and Nvidia technology, further cementing its leadership in AI innovation.

Mixed Segment Performance and Margin Pressures

While commercial revenue ROSE 9% to $11 billion, Dell’s consumer revenue fell sharply by 19% to $1.5 billion, highlighting ongoing challenges in the consumer market. Competitive pressures also weighed on gross margins, which slipped by 80 basis points to 21.6%.

Operating income improved 10% to $1.7 billion, or 7.1% of total revenue, but the gains were partly offset by a competitive pricing environment and regional sales mix issues, especially in traditional server markets.

Record Cash Flow and Strong Shareholder Returns

Dell generated record cash FLOW from operations, hitting $2.8 billion in Q1. The company returned $2.4 billion to shareholders, including the repurchase of 22.1 million shares, demonstrating its commitment to capital returns despite market headwinds.

Looking ahead, Dell issued Q2 revenue guidance of $28.5 billion to $29.5 billion, reflecting 16% growth at the midpoint, and full-year revenue guidance of $101 billion to $103 billion, representing 8% growth at the midpoint.

Stock Performance and Market Outlook

Despite the positive earnings report, Dell’s stock has underperformed in the short term. Year-to-date, shares are down 1.65%, and over the past year, the stock has dropped 32.83%. Still, its long-term performance is strong, with a three-year return of 143.2% and a five-year return of 382.6%, significantly outpacing the S&P 500.