DELL US S&P 500Russell 1000 Earnings call

Dell Technologies (DELL) · Q2 2026 results and valuation

Share price: $373.68 · 2026-11-11

Dell Technologies develops, sells, repairs, and supports personal computers, servers, data storage devices, network switches, software, and computer peripherals. The company operates in the technology sector and provides products such as printers and webcams. Source: Wikipedia

Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q2 2027 · published 1 Sep 2026 and 28 May 2026

Net income up 20.2% on the previous quarter. Management sounded very upbeat, though noticeably less so answering analysts.

1 · Numbers

+20.2%

Net income vs Q1 2026

Outlook given

Net income 4.13B vs 3.44B

Revenue +7.1%

Against the same quarter last year (Q2 2025) it is +255.1%, so it is not just seasonal.

Why Against the same quarter last year (+255.1%), net income rose primarily because of strong operating income, which was driven by higher revenue, scale, and price discipline across servers, storage, and CSG.

2 · How management spoke

Very upbeat

Among the most upbeat of all company calls

Answers to analysts: very upbeat, but clearly less so than the script.

Similar to last call.

3 · What stood out

Dell booked a record $60.9 billion in AI orders and recognized $16.4 billion in AI server revenue in Q2.

Valuation

Is Dell Technologies undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2026-01-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 3.5% growth a year (3-year revenue growth), the model's fair value is $161.10 a share — the stock trades 132% above it. Today's price assumes 13.5% growth a year.

Current price

$373.68

close of 2026-11-11

Market implies growth of i

+13.5% for 10 yrs

Fair value / share

$161.10

Buy below

$120.82

Price vs fair value

Overvalued 132%

Price vs buy-below price

Overvalued >200%

Management expects

Revenue +120% · from the Q2 2026 report: “ISG is expected to grow roughly 120% because AI server revenue is projected to rise 3x year-over-year to $74 billion.”

A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Guidance

ISG is expected to grow roughly 120% because AI server revenue is projected to rise 3x year-over-year to $74 billion.
Guidance

Dell's full year operating expense rate guidance of approximately 8% of revenue is the lowest in the company's 42-year history, demonstrating the operating leverage the model can deliver.
Figure

Revenue grew to $47 billion, up 58%, and earnings per share rose 203% to $7.04.

Source quote
“Revenue was $47 billion, up 58%, and earnings per share was $7.04, up 203%.”
Figure

Dell booked a record $60.9 billion in AI orders and recognized $16.4 billion in AI server revenue in Q2.

Source quote
“In Q2, we booked a record $60.9 billion in AI orders and recognized $16.4 billion in AI server revenue.”
Guidance

Dell gained more than 10 points of traditional server share over the past two quarters and expects to gain more share again this quarter.

3 more

Key theme

Dell expects AI to account for 75% of all data center demand by 2030, adding 200 gigawatts of power over that same time frame.

Source quote
“We're expecting AI to be 75% of all data center demand by 2030, adding 200 gigawatts of power over that same time frame.”
Guidance

Dell increased its guidance by $25 billion due to improved ability to optimize incoming supply, shape demand, and manage fulfillment.
Guidance

Dell raised its full-year revenue guidance by $25 billion to $192 billion with $25.50 of EPS.

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Very upbeat (was very upbeat)

Answers to analysts Very upbeat (was typical)

Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 92% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.

Sentences that drove the tone

“Revenue was up 26% as strong demand for our Dell IP portfolio translated into revenue growth and improved storage profitability.”

“Storage returned to growth and share gain with strong demand for Dell IP storage products and CSG revenue is growing at the fastest rate in 5 years.”

“Dell IP continues to increase as a percentage of our storage mix and margins continued to improve, supporting overall ISG profitability.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-07-31)

Metric	Q2 2026period end 2026-07-31	Q1 2026period end 2026-05-01	Change	Q2 2025	YoY
Revenue	46.97B	43.84B	+7.1%	29.78B	+57.7%
Gross profit	9.83B	7.78B	+26.3%	5.45B	+80.5%
Operating income	5.38B	3.66B	+47.3%	1.77B	+203.7%
Net income	4.13B	3.44B	+20.2%	1.16B	+255.1%
EPS	6.34	5.24	+21.0%	1.70	+272.9%
P/E today 19.1	23.6	16.7	+6.9	18.6	+5.0

Topics

Most discussed now

Dell Technologies' modernization efforts are driving greater efficiency and significant operating leverage, enabling us to grow earnings…
Dell Technologies' deployment and service capabilities are helping customers integrate solutions across their IT environment and capture…
Storage revenue was $4.9 billion, up 26%, with strong demand across the Dell IP portfolio, driving revenue growth and significant...
Net income was up 189% to $4.6 billion, primarily driven by strong operating income.
It is increasing space, driving power efficiency and cooling, and it's obviously driving demand.

Faded since Q1 2026

Fading This drove meaningful scale, record cash generation and continued strong capital returns for shareholders.
Fading Dell Technologies wes're seeing pockets of fundamental new demand.
Fading Dell Technologies had significant unit growth in traditional servers.

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-10-21 Director or officer change · SEC 8-K
Dell Technologies Inc. announced that Christopher Garcia will succeed Richard Rothberg as chief legal officer and Secretary, effective February 1, 2027.
2026-09-15 Material agreement; New financial obligation · SEC 8-K
The company entered into supplemental indentures on September 15, 2026, for senior notes due in 2029, 2031, 2033, and 2037 with interest rates of 5.100%, 5.400%, 5.600%, and 5.900% respectively.
2026-09-10 Other events · SEC 8-K
Dell Technologies Inc. entered into an underwriting agreement on September 9, 2026, to issue and sell $1,250,000,000 of 5.100% Senior Notes due 2029 and $1,250,000,000 of 5.400% Senior Notes.
2026-09-01 Results of operations · SEC 8-K
Dell Technologies Inc. issued a press release on September 1, 2026, regarding its financial results for the fiscal quarter ended July 31, 2026.
2026-07-06 Change to shareholder rights; Articles or bylaws amended · SEC 8-K
Dell Technologies Inc. approved bylaws amendments effective July 2, 2026, requiring shareholders to hold at least $1,000,000 in market value or 3% of voting shares to submit proposals.
2026-07-01 Change to shareholder rights; Shareholder vote results; Other events · SEC 8-K
Dell Technologies Inc. will move its incorporation from Delaware to Texas on July 1, 2026, requiring shareholders to own at least 3% of outstanding shares to initiate derivative proceedings.
2026-06-17 Unregistered share sale · SEC 8-K
Dell Technologies Inc. issued 3,438,364 shares of Class C common stock through the conversion of an equal number of Class B common stock shares between June 1 and June 12, 2026.
2026-06-16 Material agreement; New financial obligation · SEC 8-K
The company entered into supplemental indentures on June 16, 2026, for senior notes due in 2031, 2034, and 2037 with interest rates of 4.750%, 5.000%, and 5.250% respectively.

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-11.

Cash & runway

Cash & equivalents

$11.57B

2026-07-31

Long-term investments

$2.68B

total liquidity $14.25B

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: -4.9% YoY, -0.6% QoQ.

Quarter	Shares
Q4 2024	703.0M
Q2 2025	692.0M
Q3 2025	678.0M
Q4 2025	671.0M
Q2 2026	649.0M
Q3 2026	645.0M

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 226 filings; 50 filings parsed.

Sold by insiders

903.7K shares

$509.3M · 529 transactions

Bought by insiders

0 shares

0 transactions

Net direction

net selling

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

Q3

revenue to be $49 billion at the midpoint

Source quote
“For Q3, we expect revenue to be $49 billion at the midpoint, up roughly 80% year-on-year.”
For the full year

revenue guide of $192 billion at the midpoint

Source quote
“For the full year, we are raising our revenue guide by $25 billion to $192 billion at the midpoint, up roughly 70%, with diluted non-GAAP EPS of $25.50, up approximately 150%.”
next month

new 18G servers will begin shipping

Source quote
“They're going to have to be consolidated with new technology, whether it's our 17G and the consolidation ratios are 6:8:1 or a new 18G, they will begin shipping next month, where we see consolidation rates in the 12 to 14 servers per new 18G server.”
second half

growth rates maintaining what you've seen in the first half

Source quote
“Again, we see as part of our guide, our second half growth rates maintaining what you've seen in the first half.”
second half

traditional server growing triple digits

Source quote
“We'll continue to guide traditional server growing triple digits again for the second half as we drive that through.”