Krish Sankar's questions to Dell Technologies (DELL) leadership • Q2 2026
Question
Krish Sankar from TD Cowen posed a two-part question, asking about the AI server mix between liquid and air cooling and its margin implications, and why the full-year EPS guidance was raised by a much smaller percentage than the revenue guidance.
Answer
Jeff Clarke, COO, answered that the AI backlog and pipeline are biased towards direct liquid cooling for large-scale deployments. CFO Yvonne McGill addressed the guidance question by explaining that the revenue increase is primarily driven by $5 billion in lower-margin AI servers, with a smaller contribution from the core business. She noted that the EPS lift is based on numerous drivers, including mix and operational efficiencies across the company.