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4 days ago
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DELL Q1 Earnings Miss Estimates, Revenues Up Y/Y, Shares Fall
Dell Technologies DELL reported non-GAAP earnings of $1.55 per share in first-quarter fiscal 2026, missing the Zacks Consensus Estimate by 9.88%. The bottom line increased 17% year over increased 5% year over year to $23.38 billion and surpassed the consensus mark by 1.04%. The rise was primarily driven by growth across all its core segments. After the results were announced, shares of DELL plunged 0.84% in pre-market trading. Product revenues rose 9% year over year to $17.59 billion, beating the Zacks Consensus Estimate by 4.43%. Dell Technologies Inc. price-consensus-eps-surprise-chart | Dell Technologies Inc. Quote Services revenues declined 6% year over year to $5.77 billion missing the Zacks Consensus Estimate by 2.40%.Infrastructure Solutions Group (ISG) revenues increased 12% year over year to $10.31 upside can be attributed to servers and networking revenues of 6.32 billion, which grew 16% year over year, with demand strength across AI and traditional servers. Storage revenues increased 6% year over year to $3.99 the reported quarter, Dell Technologies' AI-optimized server momentum saw an increase of $12.1 billion in orders. The flagship PowerEdge XE9680 experienced strong demand, contributing to the momentum in the AI Technologies shipped $1.8 billion worth of AI servers in the fiscal first quarter, and the AI server backlog remained healthy at $14.4 revenues were $12.50 billion, up 5% year over year. Commercial Client revenues increased 9% year over year to $11.04 billion, while Consumer revenues fell 19% to $1.46 billion. The company's fiscal first-quarter non-GAAP gross profit increased 1% year over year to $5.05 billion. The gross margin contracted 80 basis points (bps) year over year to 21.6%.SG&A expenses fell 5% year over year to $2.96 billion. Research and development expenses increased 6% year over year to $808 million in the reported operating expenses declined 2% year over year to $3.39 billion. Operating expenses, as a percentage of revenues, contracted 110 bps on a year-over-year basis to 14.5%.The non-GAAP operating income was $1.66 billion, up 10% year over year. The operating margin expanded 30 bps year over year to 7.1%.The ISG segment's operating income jumped 36% year over year to $998 million. The CSG segment's operating income was $653 million, down 16% year over year. As of May 2, 2025, DELL had $7.70 billion in cash and cash equivalents compared with $3.63 billion as of Jan. 31, debt was $28.78 billion as of May 2, 2025, compared with $24.57 billion as of Jan. 31, company generated a cash flow from the operation of $2.8 billion. The adjusted free cash flow was $2.23 billion in first-quarter fiscal Technologies returned $2.4 billion of capital to its shareholders through $2 billion of share repurchases and paid out $396 million in dividends. For the second quarter of fiscal 2026, revenues are expected to be between $28.5 billion and $29.5 billion, with the mid-point of $29 billion suggesting 16% year-over-year Technologies anticipates 19% growth at the midpoint for the combined ISG and CSG, with ISG growing significantly and CSG up to a low-to-mid single earnings are expected to be $2.25 per share (+/- 10 cents), indicating 15% growth at the fiscal 2026, revenues are expected to be between $101 billion and $105 billion, with the mid-point of $103 billion indicating 8% year-over-year Technologies anticipates 10% growth at the mid-point for ISG and CSG combined, with ISG expected to increase in the high teens and CSG likely to grow in the low to mid-single digits. Non-GAAP earnings are expected to be $9.40 per share (+/- 25 cents), up 15% at the midpoint. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Dell Technologies has a Zacks Rank #3 (Hold) at APH, Juniper Networks JNPR and Upwork UPWK are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. APH, JNPR and UPWK sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks shares have gained 28.1% in the year-to-date period. The Zacks Consensus Estimate for APH's full-year 2025 earnings is pegged at $2.66 per share, up by 8 cents over the past 30 days, suggesting growth of 40.74% from the year-ago quarter's reported shares have lost 4% in the year-to-date period. The Zacks Consensus Estimate for JNPR's full-year fiscal 2025 earnings has been revised upward to $2.09 in the past 30 days, suggesting year-over-year growth of 21.51%.UPWK shares have lost 4.5% in the year-to-date period. The Zacks Consensus Estimate for UPWK's full-year 2025 earnings is pegged at $1.14 per share, implying a rise of 9.62% from the year-ago quarter's levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report Upwork Inc. (UPWK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
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4 days ago
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Dell Shares Climb After Raising Profit Outlook on AI Boom
May 30 - Shares of Dell Technologies (NYSE:DELL) climbed about 2% in Friday premarket trading after the company lifted its full-year profit outlook and issued stronger-than-expected guidance for the current quarter. In fiscal first quarter, Dell posted adjusted EPS of $1.55, below LSEG's $1.69 estimate, but revenue rose 1% above forecasts at $23.38 billion versus $23.14 billion expected. For the current quarter, management sees adjusted EPS of $2.25 and revenue between $28.5 billion and $29.5 billion, comfortably above consensus projections. Executives attributed the upbeat guidance to unprecedented demand for AI systems, including $7 billion in AI hardware slated to ship this quarter. Dell's Infrastructure Solutions Group, which houses its server and networking business, generated $10.3 billion in Q1 revenue, up 12% year-over-year, driven largely by AI-focused orders. On the full-year front, Dell maintained its revenue forecast of about $103 billion but raised adjusted EPS guidance by ten cents to $9.40. The company also highlighted a $14.4 billion backlog of confirmed AI system orders, up from $12.1 billion in Q1, which it expects to convert into revenue over the coming quarters. Based on the one year price targets offered by 19 analysts, the average target price for Dell Technologies Inc is $129.92 with a high estimate of $156.00 and a low estimate of $95.00. The average target implies a upside of +14.33% from the current price of $113.63. Based on GuruFocus estimates, the estimated GF Value for Dell Technologies Inc in one year is $76.84, suggesting a downside of -32.38% from the current price of $113.63. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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4 days ago
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Dell Shares Climb After Raising Profit Outlook on AI Boom
May 30 - Shares of Dell Technologies (NYSE:DELL) climbed about 2% in Friday premarket trading after the company lifted its full-year profit outlook and issued stronger-than-expected guidance for the current quarter. In fiscal first quarter, Dell posted adjusted EPS of $1.55, below LSEG's $1.69 estimate, but revenue rose 1% above forecasts at $23.38 billion versus $23.14 billion expected. For the current quarter, management sees adjusted EPS of $2.25 and revenue between $28.5 billion and $29.5 billion, comfortably above consensus projections. Executives attributed the upbeat guidance to unprecedented demand for AI systems, including $7 billion in AI hardware slated to ship this quarter. Dell's Infrastructure Solutions Group, which houses its server and networking business, generated $10.3 billion in Q1 revenue, up 12% year-over-year, driven largely by AI-focused orders. On the full-year front, Dell maintained its revenue forecast of about $103 billion but raised adjusted EPS guidance by ten cents to $9.40. The company also highlighted a $14.4 billion backlog of confirmed AI system orders, up from $12.1 billion in Q1, which it expects to convert into revenue over the coming quarters. Based on the one year price targets offered by 19 analysts, the average target price for Dell Technologies Inc is $129.92 with a high estimate of $156.00 and a low estimate of $95.00. The average target implies a upside of +14.33% from the current price of $113.63. Based on GuruFocus estimates, the estimated GF Value for Dell Technologies Inc in one year is $76.84, suggesting a downside of -32.38% from the current price of $113.63. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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5 days ago
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Dell Technologies Inc (DELL) Q1 2026 Earnings Call Highlights: Strong AI Server Demand and ...
Revenue: $23.4 billion, up 5% year-over-year. Earnings Per Share (EPS): $1.55, up 17% year-over-year. Gross Margin: $5.1 billion, or 21.6% of revenue, down 80 basis points. Operating Income: $1.7 billion, up 10%, or 7.1% of revenue. Net Income: $1.1 billion, up 13% year-over-year. Cash Flow from Operations: Record $2.8 billion for Q1. ISG Revenue: $10.3 billion, up 12% year-over-year. CSG Revenue: $12.5 billion, up 5% year-over-year. Commercial Revenue: $11.0 billion, up 9% year-over-year. Consumer Revenue: $1.5 billion, down 19% year-over-year. AI Server Orders: $12.1 billion in Q1, with $1.8 billion shipped. Storage Revenue: $4.0 billion, up 6% year-over-year. Shareholder Returns: $2.4 billion returned, including 22.1 million shares repurchased. Q2 Revenue Guidance: $28.5 billion to $29.5 billion, up 16% at midpoint. Full-Year Revenue Guidance: $101 billion to $103 billion, up 8% at midpoint. Warning! GuruFocus has detected 4 Warning Signs with MRVL. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Dell Technologies Inc (NYSE:DELL) reported a 5% increase in revenue, reaching $23.4 billion, driven by growth across all core markets. Earnings per share increased by 17% to $1.55, growing three times faster than revenue. The company experienced unprecedented demand for AI-optimized servers, with $12.1 billion in orders booked in the first quarter. Dell Technologies Inc (NYSE:DELL) achieved record cash generation for the first quarter, with cash flow from operations reaching $2.8 billion. The company is leading in AI innovation, with significant advancements in AI infrastructure and partnerships with key industry players like NVIDIA and Google. Consumer revenue declined by 19%, indicating challenges in the consumer market. Gross margin decreased by 80 basis points due to a competitive pricing environment, particularly in the CSG segment. The demand environment for traditional servers moderated compared to the previous quarter, with a lower mix of higher-margin North American sales. Operating income rate improvements were partially offset by a more competitive environment and geographical mix challenges. The company faces variability in timing and choices around technology, leading to a non-linear nature of demand and associated shipments. Q: Can you provide insights on the AI server revenue performance and expectations for fiscal '26, given the significant backlog and increased engagement? A: Jeffrey Clarke, Co-Chief Operating Officer, explained that Dell had $12.1 billion in AI server orders in Q1, surpassing all of last year. The backlog is healthy at $14.4 billion, and the five-quarter pipeline continues to grow. Clarke expressed confidence in exceeding the $15 billion target for AI server revenue, emphasizing the complexity and dependencies of customer deployments. Q: How should we interpret the second-half guidance for AI servers, and what are the expectations for ISG and CSG demand? A: Clarke noted that Dell expects to ship $7 billion of AI servers in the first half, with a growing five-quarter pipeline. The enterprise component of the pipeline is expanding faster than the CSP part. Yvonne McGill, CFO, added that while they are optimistic about AI opportunities, they are maintaining a conservative full-year guide due to the dynamic environment. Q: Can you elaborate on the storage and services attach opportunities alongside AI servers? A: Clarke highlighted Dell's expansion of its storage portfolio and data management platforms, which are crucial for AI server nodes. While there has been modest improvement in storage and networking attach, significant progress has been made in deployment and installation services. Clarke emphasized the potential for increased storage attach, particularly in enterprise environments. Q: Are there any assumptions about tariffs in your numbers, and how should we view AI server margins? A: Clarke confirmed that the guidance includes all known tariff impacts, and Dell has successfully navigated these challenges. McGill added that the guide reflects a 10% quarter-over-quarter increase in gross margin dollars, driven by AI server profitability and improvements in the storage portfolio. Q: Is the incremental spend on AI servers affecting traditional server demand, and what drove the strong operating cash flow in Q1? A: Clarke stated that traditional server demand has grown for six consecutive quarters, with expectations for moderation. The market is projected to grow 4-5%, and Dell aims to outperform. Tyler Johnson, SVP, noted that strong cash flow was driven by profitability and working capital improvements, with no one-off impacts. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
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Dell Technologies Inc (DELL) Q1 2026 Earnings Call Highlights: Strong AI Server Demand and ...
Revenue: $23.4 billion, up 5% year-over-year. Earnings Per Share (EPS): $1.55, up 17% year-over-year. Gross Margin: $5.1 billion, or 21.6% of revenue, down 80 basis points. Operating Income: $1.7 billion, up 10%, or 7.1% of revenue. Net Income: $1.1 billion, up 13% year-over-year. Cash Flow from Operations: Record $2.8 billion for Q1. ISG Revenue: $10.3 billion, up 12% year-over-year. CSG Revenue: $12.5 billion, up 5% year-over-year. Commercial Revenue: $11.0 billion, up 9% year-over-year. Consumer Revenue: $1.5 billion, down 19% year-over-year. AI Server Orders: $12.1 billion in Q1, with $1.8 billion shipped. Storage Revenue: $4.0 billion, up 6% year-over-year. Shareholder Returns: $2.4 billion returned, including 22.1 million shares repurchased. Q2 Revenue Guidance: $28.5 billion to $29.5 billion, up 16% at midpoint. Full-Year Revenue Guidance: $101 billion to $103 billion, up 8% at midpoint. Warning! GuruFocus has detected 4 Warning Signs with MRVL. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Dell Technologies Inc (NYSE:DELL) reported a 5% increase in revenue, reaching $23.4 billion, driven by growth across all core markets. Earnings per share increased by 17% to $1.55, growing three times faster than revenue. The company experienced unprecedented demand for AI-optimized servers, with $12.1 billion in orders booked in the first quarter. Dell Technologies Inc (NYSE:DELL) achieved record cash generation for the first quarter, with cash flow from operations reaching $2.8 billion. The company is leading in AI innovation, with significant advancements in AI infrastructure and partnerships with key industry players like NVIDIA and Google. Consumer revenue declined by 19%, indicating challenges in the consumer market. Gross margin decreased by 80 basis points due to a competitive pricing environment, particularly in the CSG segment. The demand environment for traditional servers moderated compared to the previous quarter, with a lower mix of higher-margin North American sales. Operating income rate improvements were partially offset by a more competitive environment and geographical mix challenges. The company faces variability in timing and choices around technology, leading to a non-linear nature of demand and associated shipments. Q: Can you provide insights on the AI server revenue performance and expectations for fiscal '26, given the significant backlog and increased engagement? A: Jeffrey Clarke, Co-Chief Operating Officer, explained that Dell had $12.1 billion in AI server orders in Q1, surpassing all of last year. The backlog is healthy at $14.4 billion, and the five-quarter pipeline continues to grow. Clarke expressed confidence in exceeding the $15 billion target for AI server revenue, emphasizing the complexity and dependencies of customer deployments. Q: How should we interpret the second-half guidance for AI servers, and what are the expectations for ISG and CSG demand? A: Clarke noted that Dell expects to ship $7 billion of AI servers in the first half, with a growing five-quarter pipeline. The enterprise component of the pipeline is expanding faster than the CSP part. Yvonne McGill, CFO, added that while they are optimistic about AI opportunities, they are maintaining a conservative full-year guide due to the dynamic environment. Q: Can you elaborate on the storage and services attach opportunities alongside AI servers? A: Clarke highlighted Dell's expansion of its storage portfolio and data management platforms, which are crucial for AI server nodes. While there has been modest improvement in storage and networking attach, significant progress has been made in deployment and installation services. Clarke emphasized the potential for increased storage attach, particularly in enterprise environments. Q: Are there any assumptions about tariffs in your numbers, and how should we view AI server margins? A: Clarke confirmed that the guidance includes all known tariff impacts, and Dell has successfully navigated these challenges. McGill added that the guide reflects a 10% quarter-over-quarter increase in gross margin dollars, driven by AI server profitability and improvements in the storage portfolio. Q: Is the incremental spend on AI servers affecting traditional server demand, and what drove the strong operating cash flow in Q1? A: Clarke stated that traditional server demand has grown for six consecutive quarters, with expectations for moderation. The market is projected to grow 4-5%, and Dell aims to outperform. Tyler Johnson, SVP, noted that strong cash flow was driven by profitability and working capital improvements, with no one-off impacts. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
