Record Results Reflect Compounding Advantages

• • Dell delivered record Q2 FY27 revenue of $47 billion, up 58%, with diluted EPS growing more than three times faster than revenue — driven by operating leverage, storage profitability and pricing discipline across the portfolio.
  • AI server momentum accelerated to a record $60.9 billion in orders and a $95 billion backlog, while traditional servers, storage and client all posted strong growth — prompting Dell to raise full-year revenue guidance by $25 billion to $192 billion.

Something important is happening in IT infrastructure. Budgets once viewed as cost centers are now viewed as value drivers, helping customers drive growth, productivity and competitive advantage. That shift is creating demand across our entire portfolio and showing up in every line of our P&L.

In Q2 FY27 we delivered record revenue of $47 billion, up 58%, and record diluted earnings per share (EPS) of $6.34 and record non-GAAP diluted EPS of $7.04, up 273% and 203% respectively. Earnings grew significantly faster than revenue, and that gap is the story of the quarter.

We returned a record $4.3 billion to shareholders in dividends and share repurchases and raised our full-year revenue guidance by $25 billion to $192 billion, making us a nearly 70% bigger business this year. These results reflect what happens when broad-based demand meets operational discipline and a portfolio that spans the entire IT environment.

Growing profitably: How EPS grew 203%

EPS growth was powered by growth across our portfolio, profitability, operating discipline and thoughtful capital deployment all working together.

Three structural drivers came together this quarter:

• • Operating leverage at scale. Years of standardizing, simplifying and automating our operations are now compounding in the P&L. Operating expenses as a percentage of revenue declined 250 basis points to 8.5%. Our full-year operating expense rate guidance is the lowest in our company’s 42-year history.
  • Storage profitability was up. Storage is becoming a more meaningful contributor to our growth and profitability. Dell IP continues to increase as a percentage of our storage mix, and margins continue to improve, which supports overall ISG profitability.
  • Pricing discipline in an environment of component inflation and strong demand.

We are confident in their durability, so we raised our full-year non-GAAP diluted EPS guidance to $25.50, up approximately 148%. With our growth, share gains, profitability and cash generation, you are seeing the compounding benefits of our durable competitive advantages, differentiated operating model and operational discipline.

Delivering growth across the portfolio

Our business model is agile, and that agility is translating into broad-based revenue growth. We are able to pivot with demand, optimize supply and leverage the breadth of our portfolio to gain profitable share.

Here is what that looked like in Q2:

• • Record infrastructure revenue of $31.8 billion, up 89%, the tenth consecutive quarter of double-digit or better revenue growth.
  • AI server momentum accelerated. We booked a record $60.9 billion in AI orders, recognized a record $16.4 billion in AI server revenue and exited the quarter with a record $95 billion backlog. Our AI customer base grew from 5,000 to 6,500 in a single quarter. We became the first to ship rack systems on the NVIDIA Vera Rubin platform, and demand is broadening across neoclouds, sovereign deployments and the enterprise.
  • Traditional server and networking revenue reached a record $10.5 billion, up 122%, with the last two quarters nearly matching any prior full year. Demand is driven by a generational infrastructure refresh and incremental CPU demand from inference and agentic workloads. Over the past two quarters we have gained more than 10 points of traditional server share, and demand continues to outpace available supply.
  • Storage revenue grew 26% to $4.9 billion. Dell IP storage has grown above market for six consecutive quarters, and because it carries higher margins, its growth is a meaningful contributor to the profitability story above.
  • Client revenue of $15 billion, up 20%, the fastest rate in five years, with commercial client growing 22% for the eighth consecutive quarter.

This is now more than a GPU story. Inference and agents are pulling CPU demand along with them, and every one of those clusters needs storage and networking underneath it. Of the $25 billion we added to our full-year revenue forecast, $11 billion comes from workloads beyond the GPU. Our addressable market is expanding, and we are winning at every level.

Raising guidance and building long-term value

We had a strong first half of the year and we expect the second half to be stronger. We are raising our expectations and guidance across every line of business.

For Q3 FY27:

• • Revenue of $49.0 billion at the midpoint, up roughly 80%
  • Infrastructure to grow roughly 145%, supported by $19 billion in AI server revenue
  • Client revenue expected to be up roughly 15%

For the full fiscal year:

• • Revenue raised by $25 billion to $192.0 billion at the midpoint, up roughly 70%
  • Non-GAAP diluted EPS of $25.50, up approximately 150%
  • AI server revenue raised by $14 billion to $74 billion, up 3x year over year
  • Traditional servers to grow just over 100%, storage up in the mid-teens and client revenue to grow in the mid-teens

Our portfolio, engineering depth, global supply chain and deep customer relationships position us at the center of the broadest infrastructure buildout in a generation. I am proud of our team’s execution and grateful to the customers who trust us to help them build for what comes next. We like our hand heading into next year.

Guidance Summary

(in billions, except percentages and per share amounts)

Third-Quarter Guidance