Dell Powers Ahead: Strong FY27 Growth Projected with Landmark $43 Billion AI Backlog
Dell Technologies (NYSE: DELL) has concluded a truly landmark fiscal year 2026 (FY26), setting numerous company records and signaling an incredibly optimistic outlook for fiscal year 2027. The tech giant, renowned for its comprehensive portfolio spanning from client devices to advanced data center solutions, announced its impressive financial results for the fourth quarter and full fiscal year ended January 30, 2026, on February 26, 2026. What truly stands out, however, is Dell's commanding position in the rapidly expanding artificial intelligence (AI) market, evidenced by a colossal $43 billion AI-optimized server backlog that promises to drive substantial growth into the coming fiscal year. These stellar
dell financial results are not just numbers; they tell a story of strategic foresight, robust execution, and a dominant play in the AI revolution.
A Defining Year: FY26 Performance Highlights and Robust Financials
Fiscal year 2026 proved to be an exceptional period for Dell Technologies, marked by record-breaking performance across key financial metrics. The company reported a full-year revenue of an astounding $113.5 billion, representing a significant 19% year-over-year increase. This robust growth underscores Dell's ability to capitalize on diverse market demands and its broad customer base.
Beyond top-line revenue, profitability soared. Diluted earnings per share (EPS) for the full year reached a record $8.68, climbing an impressive 36% from the previous year. Non-GAAP diluted EPS also saw a substantial increase, hitting $10.30, up 27% year over year. Such strong earnings growth provides a clear indicator of efficient operations and strong demand for Dell's offerings.
Perhaps equally important for long-term stability and shareholder confidence, Dell achieved a record full-year cash flow from operations of $11.2 billion. As Jeff Clarke, vice chairman and chief operating officer, aptly put it, "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." This level of cash generation is a powerful testament to the company's financial health and its capacity to invest in future growth while also returning value to shareholders.
The fourth quarter of FY26 also contributed significantly to this overall success, capping the year with record revenue of $33.4 billion, a substantial 39% increase compared to the prior year's fourth quarter. This strong finish demonstrates consistent momentum and positive market reception for Dell's products and services as the fiscal year concluded.
The AI Imperative: Fueling Future Growth with a $43 Billion Backlog
The true pivot point and primary driver for Dell's projected FY27 success lies squarely in the burgeoning artificial intelligence sector. Dell has strategically positioned itself as a leading provider of the essential infrastructure required to power AI workloads, from complex data centers to cutting-edge AI-optimized servers. The company's focus on this high-growth area is yielding extraordinary results.
Throughout FY26, Dell closed more than $64 billion in AI-optimized server orders, demonstrating an unprecedented demand for its specialized hardware. Of these orders, the company successfully shipped more than $25 billion worth of equipment during the year. What is truly remarkable, however, is the sheer scale of the remaining orders: Dell is entering FY27 with a record backlog of $43 billion in AI-optimized server orders.
This massive backlog is far more than just a number; it is a powerful indicator of Dell's leadership and engineering prowess in a fiercely competitive market. It signifies that Dell's differentiated AI solutions are resonating deeply with customers who are investing heavily in AI capabilities. As organizations globally race to integrate AI into their operations, the demand for robust, scalable, and high-performance computing infrastructure is skyrocketing, and Dell is clearly at the forefront of meeting this need. This monumental backlog provides significant revenue visibility and acts as a powerful catalyst for the anticipated growth in the coming year. For deeper insights into this transformative shift, read our related article:
Dell Technologies Reports Record FY26 Revenue, Fueled by AI.
Jeff Clarke emphasized the transformative power of AI, stating, "The AI opportunity is transforming our company... powerful proof that our engineering leadership and differentiated AI solutions are winning." This perspective highlights not just a market trend, but a fundamental reshaping of Dell's business strategy and product roadmap.
FY27 Outlook: Ambitious Targets and Strategic Confidence
Building on the incredible momentum of FY26 and the substantial AI backlog, Dell has provided exceptionally strong guidance for fiscal year 2027. The company projects full-year revenue of $140 billion at the midpoint of its range, which would represent an impressive 23% year-over-year growth. This projection significantly surpasses Dell's long-term growth targets and reflects immense confidence in its market position and strategic direction.
Furthermore, Dell anticipates robust profitability growth for FY27. The company expects diluted EPS growth of 33% at the midpoint and non-GAAP diluted EPS growth of 25% at the midpoint. These forecasts underscore a belief that the company's investments in AI infrastructure, coupled with its consistent performance across its core businesses, will translate directly into enhanced shareholder value.
David Kennedy, chief financial officer, expressed this confidence unequivocally: "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." This statement perfectly encapsulates the multi-faceted strengths Dell is leveraging: a comprehensive product portfolio, an efficient operating model, and an expanding, loyal customer base.
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Key Takeaway for Investors: Dell's aggressive FY27 guidance, backed by a tangible AI backlog, suggests that the company is not merely benefiting from a market trend but actively driving it. The significant projected growth in both revenue and EPS indicates a healthy and expanding business with strong future prospects.
Delivering Shareholder Value: Dividends and Buybacks
In addition to its impressive operational and growth forecasts, Dell Technologies reiterated its commitment to returning value to its shareholders. The company announced a 20% increase in its cash dividend, signaling financial strength and confidence in sustained future performance. This dividend hike makes Dell an even more attractive prospect for income-focused investors.
Moreover, Dell augmented its share repurchase authorization by an additional $10 billion. This strategic move allows the company to buy back its own shares from the open market, which can reduce the number of outstanding shares and thereby increase earnings per share for remaining shareholders. During FY26, Dell returned a record $7.5 billion to shareholders through a combination of share repurchases and dividends, repurchasing approximately 54 million shares. In the fourth quarter alone, $2.2 billion was returned to shareholders.
These actions demonstrate Dell's robust financial health and a proactive management approach to optimizing capital allocation. Increasing dividends and share buybacks are strong signals from management that they believe the company's stock is undervalued and that they are committed to enhancing shareholder returns. To learn more about Dell's shareholder return strategies, explore our article:
Dell Boosts Dividends & Buybacks After Record FY26 Cash Flow.
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Practical Tip for Shareholders: A consistent and increasing dividend, coupled with strategic share buybacks, often indicates a company with stable cash flows and a management team confident in its long-term outlook. Monitoring these actions can provide valuable insights into a company's financial discipline and commitment to its investors.
Conclusion
Dell Technologies' fiscal year 2026 was, by all accounts, a resounding success, marked by record revenues, surging profitability, and unprecedented cash generation. However, the most compelling story lies in the company's formidable position within the AI market. With an astounding $43 billion AI-optimized server backlog, Dell is not merely participating in the AI revolution; it is actively powering it. The ambitious FY27 guidance, projecting significant revenue and EPS growth, is firmly underpinned by this demand and Dell's strategic leadership in delivering essential AI infrastructure. Coupled with an increased cash dividend and substantial share repurchase authorization, Dell is demonstrating unwavering commitment to both innovation and shareholder value. As the digital landscape continues to evolve, Dell Technologies is poised not just for continued growth, but for a leading role in shaping the future of enterprise technology.
