Mehdi Hosseini's questions to Dell Technologies (DELL) leadership • Q2 2026
Question
Mehdi Hosseini of Susquehanna International Group asked for the key drivers behind the implied corporate gross margin improvement for Q3 and questioned why Dell doesn't scale its higher-margin services business more aggressively to boost profitability.
Answer
CFO Yvonne McGill attributed the margin improvement primarily to second-half seasonality, with a strong fourth quarter expected for the high-margin storage business, particularly Dell's own IP products. Regarding services, COO Jeff Clarke responded that they are actively trying to scale the services business, and the most effective way to do so is to grow hardware sales and attach all forms of services to those products.