Dell Surpasses Revenue Expectations with Record Quarterly Earnings, Achieving $29.8 Billion Revenue

Dell Technologies reported a record Q2 revenue of $29.8 billion, surpassing expectations. The company maintained strong operational cash flow and returned $1.3 billion to shareholders. Dell's financial health shows revenue growth of 10.7% over the past year and solid profitability margins, but a negative debt-to-equity ratio and Altman Z-Score suggest potential financial stress. Analysts have a favorable outlook with a target price of $143.07.

Dell Technologies Inc. (DELL) reported robust financial results for the second quarter of fiscal year 2026, exceeding analyst expectations. The company's revenue reached a record $29.8 billion, up 19% year-over-year, surpassing the expected $29.2 billion. The earnings per share (EPS) of $2.32 also beat the forecast of $2.29, marking a 19% year-over-year increase [1].

The company's strong performance was driven by robust demand for its AI server products and new product launches such as the business notebook for the entry-level commercial PC market. Dell's strategic focus on AI and automation has placed the company at the forefront of technological innovation, contributing to its competitive edge in the market.

Dell Technologies maintained strong operational cash flow of $2.5 billion and returned $1.3 billion to shareholders through share repurchases and dividends during the quarter. The company's financial health shows revenue growth of 10.7% over the past year and solid profitability margins. However, a negative debt-to-equity ratio and Altman Z-Score suggest potential financial stress [1].

The company raised its full-year revenue guidance to a range of $105-$109 billion, with a midpoint of $107 billion. The AI server shipment guidance was also increased to $20 billion, reflecting strong demand in this sector. Dell projects its Infrastructure Solutions Group (ISG) to grow in the mid to high 20s, while its Client Solutions Group (CSG) is expected to grow in the low to mid-single digits [1].

Analysts have a favorable outlook for Dell Technologies, with a target price of $143.07, suggesting reasonable valuation relative to its growth prospects [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-dell-technologies-beats-q2-2025-forecasts-stock-rises-93CH-4215704