What are Dell's expected Q2 numbers?

Dell's Q2 midpoint guidance is $44.5B revenue (49% YoY growth) and $4.80 non-GAAP EPS (107% YoY growth). Full-year guidance is $167.0B revenue (47% growth) and $17.90 EPS (74% growth).

Why did Dell's gross margin decline?

Gross margin was 17.8% last quarter, down from 21.1% a year earlier. The compression was driven almost entirely by AI server mix, as management said AI server profitability sits within its mid-single-digit operating income rate target.

What did Dell report last quarter?

Last quarter (Q1 FY27), Dell reported revenue of $43.84 billion, beating consensus by 22.58%. Non-GAAP EPS of $4.86 landed 63.99% above estimates. The company booked $24.4B in AI orders and recognized $16.1B in AI server revenue.

AI Stocks & MarketsAI Business & IndustryYahoo Finance AI1h agoAug 26, 2026, 01:01 JST2 min read

Dell Shares Up 247% YTD, Earnings Could Test Rally

Send on LINE

Key takeaway

Dell reports earnings on September 1 after a massive AI-driven rally. Shares are up 247% this year, and expectations are very high.
Analysts see $44.5B revenue for the quarter. A guide-up on AI servers would matter more than a beat.
Watch the backlog conversion and order pace.

3 Key Points

What happened
Dell Technologies reports fiscal Q2 results on September 1, 2026. Shares have climbed 247.32% year to date, with the stock closing Monday at $433.19 after starting the year near $124.72. The rally is powered by AI infrastructure spending from SpaceX and CoreWeave, two of Dell's largest customers.
Why it matters
Analysts expect revenue of $44.5B (49% YoY growth) and non-GAAP EPS of $4.80 (107% YoY growth) for the quarter. The consensus price target is $508.78 with 19 buy ratings and 8 holds. However, an in-line quarter is unlikely to sustain the stock at current levels since the rally has already priced in a beat and a raise.
What to watch
Watch the guidance and backlog lines. A guide-up on full-year AI server revenue above the $60B midpoint would matter more than any quarterly beat. Last quarter, Dell booked $24.4B in AI orders and exited with a $51.3B AI backlog. The stock is currently down 9.72% in the past week.

Ask the AI about this article →

Summaries like this, in your inbox every morning.

Get news like this every morning — free

Context & Analysis

Dell's dramatic transformation from hardware company to AI infrastructure play has driven extraordinary returns, with shares up 821.53% over five years and 235.33% over the trailing twelve months. The company's success is tied to concentrated demand from SpaceX and CoreWeave, which are spending heavily on AI infrastructure. However, this concentration creates vulnerability, as these large customers can extract price, dictate terms, and shift volume elsewhere.

The margin picture is a key tension. While storage and traditional server strength provide some balance—ISG operating margin expanded to 10.5% and traditional server revenue grew 92% year over year—the AI segment operates at mid-single-digit operating margins. This creates a structural question about whether rapid revenue growth at these margins deserves the current valuation multiple.

The report's reception will depend on whether numbers merely match guidance or exceed it meaningfully. Since last quarter set an unusually high bar with revenue beating consensus by 22.58%, a quarter that merely matches guidance may disappoint relative to expectations. The key indicators are backlog conversion speed, new order momentum, and any guide-up on the $60B full-year AI server revenue midpoint.

FAQ

What are Dell's expected Q2 numbers?: Dell's Q2 midpoint guidance is $44.5B revenue (49% YoY growth) and $4.80 non-GAAP EPS (107% YoY growth). Full-year guidance is $167.0B revenue (47% growth) and $17.90 EPS (74% growth).
Why did Dell's gross margin decline?: Gross margin was 17.8% last quarter, down from 21.1% a year earlier. The compression was driven almost entirely by AI server mix, as management said AI server profitability sits within its mid-single-digit operating income rate target.
What did Dell report last quarter?: Last quarter (Q1 FY27), Dell reported revenue of $43.84 billion, beating consensus by 22.58%. Non-GAAP EPS of $4.86 landed 63.99% above estimates. The company booked $24.4B in AI orders and recognized $16.1B in AI server revenue.

Yahoo Finance AIRead Original Article