Dell Technologies (NYSE:DELL) reported a strong FY26 Q4, with revenue of $33.38 billion and EPS of $3.89 beating expectations by roughly 5% and 13% respectively. The AI infrastructure business has crossed a threshold that changes the Dell story. Q4 AI server orders came in at $34.1 billion with $9.5 billion shipped, and Dell exited the year with a record $43 billion backlog. Prior guidance had implied roughly $25 billion in full-year AI server shipments, meaning Q4 alone nearly matched that entire figure.
Management guided FY27 revenue to $138 to $142 billion, implying 23% growth at the midpoint, with EPS of $12.90, up 25% year over year. Q1 alone was guided to $34.7 to $35.7 billion, roughly 20% above expectations. AI server revenue is expected to reach $50 billion in FY27, supported by a backlog almost entirely composed of Grace Blackwell systems, with the next GPU architecture not yet in the order book and representing potential upside not yet in guidance.
Margins face real pressure from multiple directions: AI servers remain a mid-single-digit operating margin business, PC profitability was sacrificed for share gains, and memory costs have risen sharply. Management has moved to address these headwinds through pricing corrections implemented in January and a success in its push into higher-margin storage products.
For more details, key highlights, and commentary, check out the high-level earnings summary.
