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Stock Sentiment
Estimates vs. Actuals / Guide
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Q2: Rev $29.8B vs. $29.2B ; EPS $2.32 vs. $2.29 .
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Q3 guide vs. Street: slight above on both revenue and EPS
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FY26 guide vs. Street: above on both metrics
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Sentiment bullets:
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Bullish: AI shipments/guide up; ISG +44% YoY; strong cash generation.
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Neutral: Commercial PC steady; broader CSG basically flat.
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Bearish: Storage −3% YoY; margin mix still a watch-item.
What Happened This Quarter
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Raised FY26 AI shipment target to $20B (from prior commentary).
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FY26 revenue and EPS guide issued above Street.
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ISG mix stronger; storage slightly down; CSG consumer softness persisted.
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$1.3B returned via buybacks/dividends.
Key Operating Highlights
| KPI | YoY | Why it matters | |
|---|---|---|---|
| ISG revenue | $16.8B | +44% | AI infrastructure demand driving top-line. |
| Servers & Networking | $12.9B | +69% | Core AI compute engine; mix shift to higher-ticket configs. |
| Storage | $3.9B | −3% | Modest drag within ISG. |
| CSG revenue | $12.5B | +1% | Commercial PCs +2%; consumer −7%. |
| Cash from ops | $2.5B | n/a | Supports capital return & AI investment. |
Guidance Update
Confirms backlog is converting to revenue while cash generation funds buybacks/dividends.
| Period | Metric | Company Guide | Street | Flag |
|---|---|---|---|---|
| Q3 FY26 | Revenue | $26.5–27.5B (mid: $27.0B) | ~$26.7B | |
| Q3 FY26 | Non-GAAP EPS | $2.45 | ~$2.40 | |
| FY26 | Revenue | $105–109B (mid: $107B) | $104.8B | |
| FY26 | Non-GAAP EPS | $9.55 (midpoint) | $9.37 | |
| Guide from the press release; Street from your pre-earnings brief. |
Earnings Are In
Dell reports a nice beat across the board and shares are up 2.2% after- hours. Lets take a look at the numbers.
| Metric | Actual | Consensus | Beat/Miss |
|---|---|---|---|
| Revenue | $29.8B | $29.2B | Beat |
| EPS (Non-GAAP) | $2.32 | $2.29 | Beat |
Dell came through with a clean double beat and stronger full-year guide. AI servers are the engine: ISG revenue up 44% YoY with servers/networking up 69%. Management raised AI shipment target to $20B for FY26, showing demand remains robust. Margins dipped YoY (18.3% vs. 21.4%) but cash flow was strong at $2.5B.
How Dell Stock Performed After Recent Earnings Releases
| Quarter | EPS Surprise | 1-Day Move | 7-Day Move | 14-Day Move |
|---|---|---|---|---|
| Q1 2026 | –8.3% | –2.08% | +0.52% | +2.58% |
| Q4 2025 | +6.4% | –4.70% | –16.22% | –8.45% |
| Q3 2025 | +4.4% | –12.25% | –12.93% | –16.55% |
| Q2 2025 | +10.5% | +4.34% | –3.70% | +6.35% |
Dell (NYSE: DELL) reports fiscal Q2 2026 earnings after the close. The PC and server giant has become a key player in the AI infrastructure buildout, booking more than $12 billion in AI server orders in Q1 alone. However, profitability pressures in PCs and traditional servers weighed on results, with EPS missing by 8% despite record revenue.
The key question tonight is whether Dell can turn that $14B+ backlog into profitable growth. Here are the figures Wall Street is expecting.
What to Expect When Dell Reports Tonight
- Revenue: $29.19 billion
- EPS (Normalized): $2.29
- FY 2026 Revenue: $104.8 billion
- FY 2026 EPS: $9.37
- FY 2027 Revenue: $112.1 billion
- FY 2027 EPS: $10.79
That implies +17% YoY revenue growth this quarter, with EPS expected to surge +21% YoY.
Key Areas to Watch When Dell Reports
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AI Servers & Backlog Conversion- $12.1B in AI orders booked in Q1, with shipments of $1.8B. Backlog grew to $14.4B. Management reaffirmed $15B+ AI revenue target for FY2026.
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Enterprise Adoption & Sovereign AI- 3,000+ enterprise customers now deploying Dell AI Factories. Orders span Blackwell, Hopper, ARM, and x86 architectures. Department of Energy win (NERSC-10) highlights sovereign AI traction.
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Traditional Server Moderation- While AI drove record ISG revenue, traditional server demand slowed in North America. Dell expects sub-seasonal performance in Q2, a key risk for gross margins.
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PC Refresh & AI PCs- Commercial PC demand rose +9% YoY in Q1, driven by AI-enabled Windows 11 refresh. Consumer PCs remain weak (–19% YoY), weighing on CSG profitability.
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Margins & Tariff Headwinds- Gross margin dipped 80 bps in Q1 to 21.6% due to mix and tariffs. Management guided Q2 gross margin dollars +10% QoQ, but investors will be watching AI margin dilution vs. absolute dollar accretion
The post Live: Will Dell Pop After Tonight’s Earnings? appeared first on 24/7 Wall St..
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Author: Joel South
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