Dell Q1 Earnings: Revenue Beat, EPS Miss, Company Highlights 'Unprecedented Demand' For AI-Optimized Servers

Dell Technologies Inc DELL reported financial results for the first quarter on Thursday after the bell. Here’s a rundown of the report.

Q1 Earnings: Dell reported first-quarter revenue of $23.38 billion, beating the consensus estimate of $23.14 billion, according to Benzinga Pro. The company reported adjusted earnings of $1.55 per share, missing analyst estimates of $1.69 per share.

Total revenue was up 5% year-over-year. Infrastructure Solutions Group revenue totaled $10.3 billion in the first quarter, up 12% year-over-year. Client Solutions Group revenue came in at $12.5 billion, up 5% year-over-year.

Cash flow from operations was $2.8 billion in the first quarter. Dell said it returned $2.4 billion to shareholders via share repurchases and dividends in the quarter. The company ended the period with $7.7 billion in cash and cash equivalents.

“We achieved first-quarter record servers and networking revenue of $6.3 billion, and we’re experiencing unprecedented demand for our AI-optimized servers,” said Jeff Clarke, vice chairman and chief operating officer of Dell.

“We generated $12.1 billion in AI orders this quarter alone, surpassing the entirety of shipments in all of FY25 and leaving us with $14.4 billion in backlog.”

Guidance: Dell expects second-quarter revenue to be between $28.5 billion and $29.5 billion. The company anticipates second-quarter adjusted earnings of $2.25 per share. Dell expects fiscal 2026 revenue of $101 billion to $105 billion and full-year adjusted earnings of $9.40 per share.

Dell’s management team will hold a conference call at 4:30 p.m. ET to further discuss the quarter with investors and analysts.

DELL Price Action: Dell shares were up 4.16% in Thursday’s after-hours session, trading at $113.63 at the time of publication, according to Benzinga Pro.

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