Dell Technologies announced its fourth quarter and full-year fiscal 2026 results, delivering record revenue, earnings, and cash flow while projecting a dramatic surge in artificial intelligence server sales in fiscal 2027.
The company reported full-year revenue of $113.5 billion, up 19% year over year, with diluted earnings per share of $8.68, up 36%. Non-GAAP diluted earnings per share reached $10.30, up 27%, while cash flow from operations hit a record $11.2 billion. In the fourth quarter alone, revenue rose 39% year over year to a record $33.4 billion, with non-GAAP diluted EPS of $3.89.
But the headline for investors was Dell’s outlook for its AI infrastructure business.
For fiscal 2027, Dell expects full-year revenue between $138 billion and $142 billion, representing 23% growth at the midpoint of $140 billion. Most notably, the company said full-year AI-Optimized Servers revenue is expected to be roughly $50 billion, up 103% year over year — more than doubling from the prior year.
Dell closed more than $64 billion in AI-optimized server orders in fiscal 2026 and shipped more than $25 billion during the year. The company is entering fiscal 2027 with a record backlog of $43 billion, reflecting sustained demand for AI infrastructure.
Within the Infrastructure Solutions Group, full-year revenue reached $60.8 billion, up 40% year over year, while quarterly AI-Optimized Servers revenue surged 342% year over year to $9.0 billion. Infrastructure Solutions Group operating income rose 27% for the full year to $7.1 billion.
The Client Solutions Group generated $51.0 billion in full-year revenue, up 5% year over year. Fourth-quarter revenue for the segment increased 14% to $13.5 billion.
Dell also announced a 20% increase in its cash dividend and a $10 billion increase in its share repurchase authorization. During fiscal 2026, the company returned a record $7.5 billion to shareholders through share repurchases and dividends.
Looking ahead, Dell expects fiscal 2027 non-GAAP diluted EPS of $12.90 at the midpoint, up 25% year over year, and GAAP diluted EPS of $11.52 at the midpoint, up 33%.
The results underscore how rapidly AI infrastructure has become central to Dell’s business model, with AI-Optimized Servers now positioned to generate approximately $50 billion in annual revenue — a milestone that highlights the scale of enterprise and hyperscale demand fueling the AI data center buildout.
KEY QUOTES:
“FY26 was a defining year in our company’s history, with record full-year revenue of $113.5 billion, record EPS, and record cash generation. The AI opportunity is transforming our company. We closed more than $64 billion in AI-optimized server orders, shipped more than $25 billion throughout the year, and are entering FY27 with record backlog of $43 billion — powerful proof that our engineering leadership and differentiated AI solutions are winning.”
Jeff Clarke, Vice Chairman And Chief Operating Officer, Dell Technologies
“We delivered record revenue of $33.4 billion in our fourth quarter, capping a record year for the company. Our strong execution drove record annual cash flow of more than $11 billion and record capital returned to shareholders of $7.5 billion. We have the portfolio, operating model and growing customer base to exceed our long-term growth targets in FY27, with expected revenue of $140 billion at the midpoint of our range and EPS growth of 25%.”
David Kennedy, Chief Financial Officer, Dell Technologies
