Total Revenue

+5% (from $22,244M to $23,378M)

Total revenue increased modestly due to overall strength across both segments, with improvements in ISG and CSG revenue contributing to a higher top‐line despite a challenging services mix, reinforcing trends observed in the previous period. " "

ISG Revenue

+12% (from $9,227M to $10,317M)

ISG revenue was boosted largely by the growing demand for AI-optimized servers and strong performance in servers and networking, continuing the upward momentum seen in the prior period and driving a robust 12% increase. " "

CSG Revenue

+4.5% (from $11,967M to $12,509M)

CSG revenue gained modestly as a result of a revitalized PC refresh cycle and sustained performance in commercial segments, overcoming previous challenges related to reduced unit sales and price declines. " "

Operating Income

+26% (from $920M to $1,165M)

Operating income surged by 26% due to improved margin performance—primarily stemming from the ISG segment—and disciplined cost management that offset lower margins in other areas, a significant improvement relative to last year’s figures. " "

Products Revenue

+9% (from $16,127M to $17,599M)

Products revenue grew by 9% fueled by strong ISG product performance, especially in AI-driven offerings, and a favorable shift in the product mix compared to the previous period, reflecting enhanced demand for Dell’s hardware solutions. " "

Services Revenue

–5.6% (from $6,117M to $5,779M)

Services revenue declined by 5.6% as a result of reduced revenue from VMware distribution and differences in deferred revenue recognition, challenges that continued from the previous period despite growth in some CSG and ISG service sub-segments. " "

Operating Cash Flow

+169% (from $1,043M to $2,796M)

Operating cash flow increased dramatically (approximately 169%) driven by significant adjustments reconciliating net income to cash flow, enhanced working capital management (notably improvements in accounts payable and inventory changes), and operational efficiencies that marked a clear improvement over the prior period. " "

Revenue

Q2 2026

Expected to be between $22.5B and $23.5B, with a midpoint of $23B, representing a 3% growth "

Expected to be between $28.5B and $29.5B, with a midpoint of $29B, up 16% "

raised

ISG and CSG Combined Growth

Q2 2026

Expected to grow 6% at the midpoint (ISG: low teens; CSG: flat) "

Expected to grow 19% at the midpoint "

raised

Operating Expenses (OpEx)

Q2 2026

Expected to decline in the low single digits year-over-year "

Expected to be down low single digits year-over-year "

no change

Diluted Non-GAAP EPS

Q2 2026

Expected to be $1.65 ± $0.10, representing a 25% growth at the midpoint "

Expected to be $2.25 ± $0.10, up 15% at the midpoint "

raised

Diluted Share Count

Q2 2026

Expected to be between 706 million and 710 million shares "

Expected to be roughly 685 million shares "

lowered

Operating Income

Q2 2026

no prior guidance

Expected to be up roughly 8% "

no prior guidance

Revenue

FY 2026

Expected to be between $101B and $105B, with a midpoint of $103B, representing an 8% growth " "

Expected to be between $101B and $105B, with a midpoint of $103B, up 8% "

no change

ISG Growth

FY 2026

Expected to grow in the high teens " "

Expected to grow high teens "

no change

CSG Growth

FY 2026

Expected to grow in the low to mid-single digits " "

Expected to grow low to mid-single digits "

no change

ISG and CSG Combined Growth

FY 2026

Expected to grow 10% at the midpoint "

Expected to grow 10% at the midpoint "

no change

Operating Expenses (OpEx)

FY 2026

Expected to decline in the low single digits year-over-year "

Expected to be down low single digits year-over-year "

no change

Operating Income

FY 2026

no prior guidance

Expected to be up roughly 9% "

no prior guidance

Diluted Non-GAAP EPS

FY 2026

Expected to be $9.30 ± $0.25, representing a 14% growth at the midpoint "

Expected to be $9.40 ± $0.25, up 15% at the midpoint "

raised

AI Server Demand & Pipeline Growth

Mentioned consistently in Q2–Q4 2025 with strong order demand, robust backlog figures (e.g., $4.1B–$9B) and substantial pipeline growth across enterprise and CSP customers " " "

Q1 2026 shows exceptionally strong AI server demand with record order values ($12.1B), a backlog of $14.4B, and a 5‐quarter pipeline that is “multiples of the backlog” " " "

Improved volume and pipeline strength with continued enterprise momentum despite mixed profitability concerns

Traditional Servers & Storage Demand Evolution

Consistently discussed in Q2–Q4 2025: traditional servers showed multi-quarter growth driven by consolidation and repatriation trends, while storage (especially Dell IP storage) led with double-digit gains in parts " " "

Q1 2026 revealed that traditional server demand remained positive with six consecutive quarters of YoY growth, though moderated by a lower North American mix; storage revenue increased 6% " " "

Servers show moderate growth while storage remains robust, reflecting a slight softening in higher‐margin geographies

Dell IP Storage Solutions Expansion

Emphasized in Q2–Q4 2025 with strong demand for PowerStore, PowerScale, and PowerFlex products, record storage profitability, and a strategic pivot to Dell IP over partner IP " " "

Q1 2026 continued focus on expanding Dell IP storage with 6% revenue growth and enhanced product capabilities (e.g., integration of security and AI analytics) " " "

Consistent strategic emphasis with improved margins and continued innovation in product capabilities

PC Refresh Cycle & New AI PC Introductions

Discussed across Q2–Q4 2025: refresh cycle driven by Windows 10 end‐of‐life and aging installed base; new AI PCs, including Lunar Lake-based and AMD AI models, were introduced to stimulate market interest " " "

Q1 2026 notes that the PC refresh cycle is behind prior cycles yet highlights strong traction in commercial segments and broadened AI PC portfolio (e.g., Pro Max notebooks) " "

Refresh cycle remains slower than ideal, but new AI-enabled products are positioned as growth drivers with mixed near-term pace

Competitive Environment & Pricing Pressures

Q2–Q4 2025 calls noted aggressive pricing in consumer and competitive pressures across segments; operating margins were pressured, especially in CSG, though AI server segments maintained a market premium " " "

Q1 2026 maintains stability in ASPs and disciplined pricing across commercial PCs and ISG, with no major price moves despite ongoing competition " "

Stable pricing strategies with consistent management of competitive pressures help balance growth and profitability

Supply Chain Constraints Impacting AI Server Shipments

Q2 2025 described complex logistics (data center readiness, power, cooling) and Q3 2025 noted constraints during the Blackwell ramp-up, while Q4 2025 stated supply was not a major issue " " "

Q1 2026 did not mention any supply chain constraints, indicating improved conditions and fewer disruptions "

Constraints have eased in Q1, suggesting improved supply chain agility and a positive outlook for shipment execution

Trade Tariffs & Macro-economic Challenges

Q2 2025 provided limited info; Q3 and Q4 2025 highlighted fluid tariff environments and ongoing macro uncertainties impacting demand and margins " "

Q1 2026 discussed incorporating known tariff impacts into guidance and observed a demand slowdown, particularly in North America, due to macroeconomic factors " " "

Continued caution with tariffs and macro challenges, though strategic measures are in place to mitigate impacts

Operational Excellence & Execution Efficiency

Across Q2–Q4 2025, Dell stressed modernization, cost discipline, and improved operating income, with notable reductions in operating expenses and optimized processes " " "

Q1 2026 reiterated a focus on operational excellence through supply chain agility, reduced operating expenses, and disciplined capital allocation (including record cash flow and shareholder returns) " "

A consistent emphasis on efficiency and modernization yields improved profitability and strong operational metrics

Financial Flexibility & Free Cash Flow Concerns

Q2–Q4 2025 saw discussions on free cash flow pressures from lower CSG growth and investments in AI, with mixed signals in free cash generation and capital returns " " "

Q1 2026 showcased record cash flow from operations ($2.8B), increased cash reserves, and significant capital returns, indicating strong financial flexibility " "

Enhanced free cash flow and robust liquidity contrast earlier concerns, reflecting improved financial execution

Shifting Profitability & Margin Dynamics

Q2–Q4 2025 addressed challenges of margin dilution in AI servers despite gross margin dollar accretion, improved ISG margins, and the impact of competitive pricing on CSG " " "

Q1 2026 showed continued improvement in ISG operating income, stable AI server contribution to margin accretion, and acknowledgment of seasonal impacts on traditional servers " " "

Progressive margin management with strategic focus on high-margin segments and AI-driven profitability enhances overall dynamics

Repatriation of Workloads from Cloud (No Longer Emphasized)

Q2 2025 mentioned workload repatriation from the cloud as a demand driver for traditional servers "

Q3 2025 and Q4 2025 did not reference this topic, and it is absent in Q1 2026 discussions

The topic has faded from recent commentary, suggesting a reduced emphasis on cloud repatriation as a growth driver

Direct Sales and Partner Program Advantages (Less Emphasized)

Q2 2025 highlighted Dell’s broad coverage model combining direct sales and partner programs; Q3 and Q4 2025 mentioned these channels, especially for storage growth " "

Q1 2026 did not mention direct sales or partner program advantages

There is a reduced emphasis on dealer/channel advantages, indicating a possible strategic shift or lower priority in current messaging