# Dell Technologies (DELL) Q2 2026 Earnings Call Summary
## Summary Introduction
In the Q2 2026 earnings call, Dell Technologies showcased a robust financial performance and strategic agility amidst a dynamic market environment. The company reported a record revenue of $29.8 billion, a 19% increase year-over-year, driven by significant growth in both its Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). This performance reflects Dell’s strong market positioning and alignment with macroeconomic trends such as digital transformation and AI integration. Dell’s leadership announced strategic initiatives including new partnerships and product launches, particularly in AI technologies, which have bolstered investor confidence. The company also addressed potential challenges such as supply chain dynamics and regional market variability, emphasizing strategic responses that leverage Dell’s operational strengths and innovation capabilities.
## Summarized Content
– Dell Technologies reported a record revenue of $29.8 billion in Q2 FY2026, marking a 19% increase year-over-year, with significant growth in both Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). Earnings per share also rose by 19% to $2.32, reflecting robust operational efficiency and strong AI server shipments.
– The company highlighted its strategic focus on AI, noting record AI server shipments worth $8.2 billion during the quarter and a backlog of $11.7 billion. Dell also launched new AI solutions in partnership with NVIDIA, enhancing its product offerings and addressing diverse industry needs.
– Dell anticipates continued growth, particularly in AI hardware and services, projecting the market to double.
– The company has raised its full-year revenue guidance for FY ’26 to between $105 billion and $109 billion, representing a midpoint increase of 12%. They anticipate mid- to high-20s percentage growth in ISG due to AI server shipments and traditional server growth, while storage is expected to remain flat. Full-year diluted non-GAAP earnings per share (EPS) guidance has also been increased to $9.55, plus or minus $0.25, up 17% at the midpoint.
– Key strategic focuses include driving revenue growth and market share gains profitably, continuing modernization efforts, and generating significant cash flow with strong capital returns to shareholders. The upcoming Security Analyst Meeting on October 7 will further discuss growth and.
– Dell is strategically focusing on increasing its proprietary Dell IP storage products, which are more margin-rich compared to partner IP products. This shift is expected to enhance profitability, especially as the company works on improving margins across these products and anticipates outperforming the market with its Dell IP storage portfolio.
– Despite challenges in growth and demand, particularly in North America, Dell remains optimistic about the second half of the fiscal year, projecting stronger performance due to a favorable product mix and seasonality in storage. The company also highlighted significant opportunities in AI and enterprise sectors, expecting these areas to contribute positively to future revenue and profitability.
– Dell reported a backlog rich in Blackwell technology variants, indicating strong ongoing demand for its latest products. The company is working closely with.
– Jeffrey W. Clarke highlighted the opportunity for growth in the PC market due to the upcoming end of life for Windows 10, with about half of the installed base yet to upgrade, which is expected to drive PC sales into the next year. The company aims to outperform the market and improve share, supported by new product launches and a focus on increasing operating margins.
– Yvonne McGill discussed expectations for the second half of the year, noting a focus on storage and the Integrated Solutions Group (ISG) business, particularly in the fourth quarter. She mentioned that profitability improvements are expected across the company, driven by a favorable mix towards Dell’s proprietary products in storage and efficiency gains across the portfolio.
– The company is actively working to increase.
## Highlights
– Dell Technologies reported a record revenue of $29.8 billion in Q2 FY2026, marking a 19% increase year-over-year, with significant growth in both Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). Earnings per share also rose by 19% to $2.32, reflecting robust operational efficiency and strong AI server shipments.
– The company highlighted its strategic focus on AI, noting record AI server shipments worth $8.2 billion during the quarter and a backlog of $11.7 billion. Dell also launched new AI solutions in partnership with NVIDIA, enhancing its product offerings and addressing diverse industry needs.
– Dell anticipates continued growth, particularly in AI hardware and services, projecting the market to double.
– The company has raised its full-year revenue guidance for FY ’26 to between $105 billion and $109 billion, representing a midpoint increase of 12%. They anticipate mid- to high-20s percentage growth in ISG due to AI server shipments and traditional server growth, while storage is expected to remain flat. Full-year diluted non-GAAP earnings per share (EPS) guidance has also been increased to $9.55, plus or minus $0.25, up 17% at the midpoint.
– Key strategic focuses include driving revenue growth and market share gains profitably, continuing modernization efforts, and generating significant cash flow with strong capital returns to shareholders. The upcoming Security Analyst Meeting on October 7 will further discuss growth and.
– Dell is strategically focusing on increasing its proprietary Dell IP storage products, which are more margin-rich compared to partner IP products. This shift is expected to enhance profitability, especially as the company works on improving margins across these products and anticipates outperforming the market with its Dell IP storage portfolio.
– Despite challenges in growth and demand, particularly in North America, Dell remains optimistic about the second half of the fiscal year, projecting stronger performance due to a favorable product mix and seasonality in storage. The company also highlighted significant opportunities in AI and enterprise sectors, expecting these areas to contribute positively to future revenue and profitability.
– Dell reported a backlog rich in Blackwell technology variants, indicating strong ongoing demand for its latest products. The company is working closely with.
– Jeffrey W. Clarke highlighted the opportunity for growth in the PC market due to the upcoming end of life for Windows 10, with about half of the installed base yet to upgrade, which is expected to drive PC sales into the next year. The company aims to outperform the market and improve share, supported by new product launches and a focus on increasing operating margins.
– Yvonne McGill discussed expectations for the second half of the year, noting a focus on storage and the Integrated Solutions Group (ISG) business, particularly in the fourth quarter. She mentioned that profitability improvements are expected across the company, driven by a favorable mix towards Dell’s proprietary products in storage and efficiency gains across the portfolio.
– The company is actively working to increase.
## Key Facts and Performance
In Q2 2026, Dell Technologies demonstrated exceptional financial and operational performance, with a record revenue of $29.8 billion, marking a 19% increase from the previous year. This growth was significantly driven by the Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG), with notable contributions from AI server shipments and strategic product enhancements.
### Regional Growth
– **Americas**: Despite some challenges in North America, overall performance remained strong with expectations of a rebound in the second half of the fiscal year.
– **EMEA**: Details on performance specific to EMEA were not disclosed.
– **Asia Pacific**: The region continues to show potential for growth, although specific figures were not discussed.
### Operational Performance
– **ISG**: Projected mid- to high-20s percentage growth, driven primarily by AI server shipments and traditional server growth.
– **CSG**: Continued to perform well with expectations of further growth driven by the PC market, particularly with the upcoming Windows 10 end of life scenario.
### Strategic Updates
– **AI Initiatives**: Launched new AI solutions in partnership with NVIDIA, targeting a diverse range of industry needs.
– **Storage Solutions**: Increasing focus on proprietary Dell IP storage products to enhance profitability.
– **Product Backlog**: A significant backlog rich in Blackwell technology variants indicates strong ongoing demand.
### Financial Metrics
– **Revenue**: $29.8 billion in Q2, with a full-year guidance raised to between $105 billion and $109 billion.
– **Earnings Per Share**: Q2 EPS rose by 19% to $2.32, with full-year EPS guidance increased to $9.55, plus or minus $0.25.
– **Margins and Profitability**: Specific figures on margins were not detailed, but there is a strategic focus on improving profitability, especially through proprietary products.
The strategic and operational advancements are expected to not only enhance profitability but also strengthen market share and investor confidence amid competitive and macroeconomic challenges.
## Outlook
For the remainder of FY 2026, Dell Technologies has set optimistic revenue and earnings projections, with revenue guidance adjusted to between $105 billion and $109 billion and EPS expected to be around $9.55. The company anticipates strong growth in the AI sector and improvements in storage solutions, driven by a shift towards more profitable proprietary products.
### Strategic Plans
– **AI Expansion**: Continued focus on expanding AI hardware and services.
– **Storage Modernization**: Enhancements in storage technology and a shift towards proprietary solutions.
– **Operational Efficiencies**: Ongoing efforts to streamline operations and improve margins across all business segments.
### Risks and Challenges
– **Supply Chain Dynamics**: Ongoing adjustments to mitigate supply chain risks.
– **Macroeconomic Factors**: Navigating through inflationary pressures and regional economic variabilities.
– **Cost Pressures**: Managing increased operational costs while striving to maintain profitability.
Leadership remains confident in the company’s strategic direction and operational resilience, which are expected to drive sustained growth and market competitiveness.
## Conclusion
Dell Technologies’ Q2 2026 performance highlights its strong financial health and strategic foresight. With record revenues and an optimistic outlook, the company is well-positioned to capitalize on market opportunities, particularly in AI and advanced storage solutions. Despite some regional challenges and macroeconomic uncertainties, Dell’s focus on innovation, operational efficiency, and strategic market positioning continues to inspire investor confidence. The company’s resilience and proactive strategies underscore its competitive strength and potential for sustained growth in the evolving tech landscape.
