Dell Technologies Soars to Record FY26 Revenue, Propelled by the AI Revolution
ROUND ROCK, Texas – February 26, 2026 – Dell Technologies (NYSE: DELL) has announced truly remarkable financial results for its fiscal year 2026, ending January 30, 2026. The tech giant not only shattered previous records in revenue, earnings per share (EPS), and cash generation but also unveiled an ambitious outlook for FY27, largely driven by its strategic leadership in artificial intelligence. These dell financial results paint a picture of a company undergoing a profound transformation, positioning itself at the forefront of the generative AI era.
The company's performance underscores a pivotal shift in the technology landscape, where the demand for robust, AI-optimized infrastructure is soaring. Dell's ability to capitalize on this trend has been instrumental in its unprecedented success, setting a new benchmark for what's possible in a rapidly evolving market.
A Landmark Year: Dell's FY26 Financial Triumphs
Fiscal Year 2026 stands as a defining period in Dell Technologies' history, characterized by record-breaking financial performance across key metrics. The company reported a record full-year revenue of $113.5 billion, representing a substantial 19% increase year over year. This top-line growth was mirrored by exceptional profitability and cash flow generation, demonstrating the efficacy of Dell's operational strategies and market positioning.
- Record Diluted EPS: Full-year diluted EPS surged by an impressive 36% year over year to $8.68. Non-GAAP diluted EPS also saw significant growth, climbing 27% to $10.30, reflecting strong underlying business health.
- Unprecedented Cash Flow: Dell generated a record $11.2 billion in cash flow from operations for the full year. This robust cash generation provides the company with substantial flexibility for strategic investments, debt reduction, and returning capital to shareholders.
The fourth quarter of FY26 was equally stellar, serving as a powerful close to a record-setting year. Dell reported record quarterly revenue of $33.4 billion, a remarkable 39% increase compared to the previous year. Fourth-quarter diluted EPS rose by an astounding 57% to $3.37, with non-GAAP diluted EPS increasing 45% to $3.89. Cash flow from operations for the quarter also hit a record $4.7 billion.
Jeff Clarke, vice chairman and chief operating officer of Dell Technologies, emphasized the transformative impact of AI on the company: "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." This sentiment resonates deeply with the company's strategic direction and future prospects, clearly highlighting AI as the primary growth engine.
The AI Revolution: Driving Dell's Unprecedented Growth
The cornerstone of Dell's record-breaking dell financial results is undoubtedly its formidable leadership in AI-optimized infrastructure. As businesses worldwide grapple with the complexities and opportunities presented by generative AI, the demand for specialized computing power and data management solutions has exploded. Dell has been exceptionally well-prepared to meet this demand, leveraging its long-standing expertise in enterprise IT and server technology.
Dell's success in AI is not merely anecdotal; it's backed by concrete figures:
- Massive AI-Optimized Server Orders: The company closed more than $64 billion in AI-optimized server orders throughout FY26. This colossal figure demonstrates the enterprise-wide shift towards AI adoption and Dell's trusted position as a provider of critical infrastructure.
- Significant Shipments: Over $25 billion of these AI-optimized servers were shipped during the fiscal year, indicating strong execution capabilities and efficient supply chain management to deliver on customer needs.
- Record Backlog: Dell is entering FY27 with a staggering $43 billion in AI-optimized server backlog. This substantial backlog provides a clear indicator of sustained demand and a strong revenue pipeline for the coming fiscal year. It's powerful proof of Dell's "engineering leadership and differentiated AI solutions are winning," as stated by Jeff Clarke.
This success stems from Dell's deep understanding of enterprise-grade requirements. Businesses implementing AI need not just powerful hardware, but also integrated solutions that offer scalability, security, manageability, and robust support. Dell's comprehensive portfolio, which spans from high-performance servers and storage to networking and services, allows it to deliver end-to-end AI infrastructure tailored to specific industry needs and workloads. Whether it's for large language model training, inferencing, or data analytics, Dell's AI-optimized solutions are designed to handle the most demanding computational tasks.
Practical Tip: For businesses considering AI implementation, Dell's strong performance in AI infrastructure signals a reliable partner. When evaluating solutions, look for providers that offer integrated hardware and software, scalable architectures, and strong ecosystem partnerships, as these are critical for successful long-term AI adoption.
Investing in the Future: Robust Guidance and Shareholder Value
Beyond the impressive FY26 results, Dell Technologies has provided exceptionally strong guidance for fiscal year 2027, signaling continued confidence in its growth trajectory, particularly its AI segment. The company anticipates full-year revenue for FY27 to reach approximately $140 billion at the midpoint of its range, representing a robust 23% year-over-year growth. This projection is underpinned by an expected 33% growth in diluted EPS and 25% growth in non-GAAP diluted EPS at the midpoint.
David Kennedy, chief financial officer of Dell Technologies, highlighted the strategic advantages: "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 forward-looking statement reinforces the company's strategic positioning and operational efficiency.
In a strong demonstration of its financial health and commitment to shareholder returns, Dell also announced a 20% increase in its cash dividend. Furthermore, the company authorized a $10 billion increase in its share repurchase program. These actions follow a year where Dell returned a record $7.5 billion to shareholders, repurchasing approximately 54 million shares. In the fourth quarter alone, $2.2 billion was returned through buybacks and dividends. These substantial commitments to returning capital underscore management's confidence in Dell's sustained profitability and future cash generation. For more details on the strong FY27 projections, you can read about Dell Projects Strong FY27 Growth with $43 Billion AI Backlog. For a deeper dive into the shareholder value initiatives, see Dell Boosts Dividends & Buybacks After Record FY26 Cash Flow.
Insight for Investors: A significant increase in dividends and share repurchase authorization often signals that a company's leadership believes its stock is undervalued and/or it expects strong, consistent free cash flow in the future. It reflects confidence in the long-term business outlook and a commitment to enhancing shareholder value.
Beyond the Numbers: What Dell's Performance Means for the Tech Landscape
These outstanding dell financial results are more than just an indicator of a single company's success; they reflect broader, profound shifts within the enterprise technology market. Dell's performance highlights several critical trends:
- AI as a Core Business Driver: The sheer volume of AI-optimized server orders and backlog firmly establishes AI infrastructure as a fundamental necessity, not just a niche product. Businesses are no longer experimenting with AI; they are strategically investing in the underlying compute power required to gain a competitive edge.
- Enterprise Trust in Established Players: In the complex world of AI, enterprises often gravitate towards established vendors with a proven track record in reliability, support, and ecosystem integration. Dell's long-standing relationships and global service capabilities give it a significant advantage.
- The Future of Data Centers: As AI models grow in complexity, traditional data center architectures are evolving. Dell's focus on specialized, high-density, and energy-efficient AI solutions is indicative of the direction the industry is heading. Hybrid cloud strategies, often underpinned by powerful on-premise AI capabilities, are becoming standard.
- Resilience in the Face of Economic Uncertainty: While other sectors might face headwinds, the strategic imperative of AI adoption appears to be driving continued investment in technology infrastructure, demonstrating the tech sector's resilience.
Dell's ability to pivot and aggressively pursue the AI opportunity speaks volumes about its strategic agility and engineering prowess. It's a testament to how a legacy hardware company can successfully transform and lead in emerging, high-growth segments.
Conclusion
Dell Technologies' fiscal year 2026 was truly historic, marked by record-breaking revenue, earnings, and cash flow, undeniably fueled by its aggressive and successful foray into AI-optimized solutions. With an impressive $43 billion AI-optimized server backlog and robust FY27 guidance, Dell is not just reacting to the AI revolution; it's actively shaping it. The company's commitment to innovation, coupled with its strong financial health and dedication to shareholder returns, solidifies its position as a dominant force in the global technology landscape. As businesses continue their journey into AI, Dell Technologies stands ready to power their transformation, promising sustained growth and leadership in the years to come.