Dell Technologies filed an 8-K on 1 September 2026 under Item 2.02 to report its fiscal Q2 2027 results (the quarter ended 31 July 2026). Revenue hit a record $47.0 billion, up 58% year over year, non-GAAP EPS more than tripled to $7.04, and management raised the full-year revenue outlook by $25 billion in one step.

The numbers

• Revenue: $46,971m (~$47.0bn), +58% YoY (from $29,776m) and +7.1% QoQ (from $43,842m in Q1 FY27). Analysts had been looking for roughly $44.4–44.5bn — a clear beat.
• Non-GAAP EPS: $7.04 vs consensus of about $4.90 and Dell's own guidance of $4.80 (±$0.10) — a very large beat. Up 203% YoY (from $2.32) and +44.9% QoQ (from $4.86).
• GAAP EPS: $6.34, up 273% YoY. GAAP net income was $4,133m against $1,164m a year ago.
• AI-optimised servers: record revenue of $16,401m, +100% YoY — but only +1.7% QoQ (from $16,132m). The AI server line has essentially been flat sequentially for a quarter.
• AI orders and backlog: a record $60.9bn of AI server orders booked in the quarter, exiting with a record $95bn backlog.
• Infrastructure Solutions Group (ISG): revenue $31,782m, +89% YoY. Operating income $4,781m — a 15.0% operating margin, versus 10.5% in Q1 FY27 and 8.8% a year ago.
• Other ISG lines: traditional servers and networking $10,531m (+122%), storage $4,850m (+26%).
• Client Solutions Group (PCs): revenue $15,034m, +20% YoY; operating income $1,142m at a 7.6% margin.
• Cash: adjusted free cash flow $8,149m (+224%), but cash flow from operations fell 13% YoY to $2,225m — see the caveat below.
• Guidance — raised: Q3 FY27 revenue of $49.0bn (+81% YoY) and non-GAAP EPS of $6.50. Full-year FY27 revenue lifted from $167bn to $192bn (+69% YoY), with AI-optimised server revenue raised from $60bn to $74bn, and full-year non-GAAP EPS from $17.90 to $25.50.
• Shareholder returns: a record $4.3bn returned in the quarter; the board declared a $0.63 quarterly dividend on 1 September, payable 30 October to holders of record on 20 October.

What was filed: an 8-K, Item 2.02

A Form 8-K is the "something happened" filing. Unlike the 10-Q and 10-K, which arrive on a fixed calendar, an 8-K is triggered by an event and is generally due within four business days. It is the fastest official channel a US-listed company has for telling the market something material.

Item 2.02 — "Results of Operations and Financial Condition" — is the item a company uses when it publicly announces results for a completed period. The 8-K itself is usually a one-page cover sheet; the substance sits in Exhibit 99.1, the earnings press release attached under Item 9.01. When you see an 8-K with Items 2.02 and 9.01 together, that is almost always an earnings report.

One quirk worth knowing: results furnished under Item 2.02 are furnished rather than filed, which changes their legal status slightly. It does not change the fact that the numbers are the company's own official disclosure — the audited detail simply follows later in the 10-Q.

Why it matters

The margin question got an answer. Going into this print, the central worry about Dell was not demand — it was profitability. Selling an AI server means reselling an expensive GPU, and the chip vendor captures most of the gross margin on that GPU. Dell's ISG operating margin had compressed to 10.5% in the prior quarter as AI became a larger share of the mix. This quarter ISG margin went to 15.0% while AI server revenue still doubled year over year. That combination — mix shifting toward the lower-margin product and segment margin expanding — is the single most informative line in the release.

Growth is broadening beyond AI servers. Traditional servers and networking grew 122%, storage 26%, and commercial PCs 22%. That matters because AI-optimised server revenue was up 100% YoY but only 1.7% sequentially. If you looked only at the AI line, this would read as a plateau quarter. The rest of the portfolio is what produced the sequential revenue growth.

The backlog is the forward-looking number. A $95bn backlog against $192bn of guided full-year revenue is a large book of committed work, and $60.9bn of orders in a single quarter is why management could add $25bn to the year in one move. Backlog is not revenue, though: it converts on a schedule that depends on GPU supply, customer readiness and datacentre power. It also tells you nothing about the margin at which it will convert.

Watch operating cash flow. Net income rose 255% year over year while cash generated by operations fell 13% to $2.2bn. That gap is the working capital cost of scaling a hardware business this fast — inventory and receivables absorb cash before customers pay. Dell's headline adjusted free cash flow figure of $8.1bn is a non-GAAP measure calculated differently; when the two move in opposite directions, the GAAP operating cash flow line is the more conservative read.

Input costs are the live risk. Server DRAM pricing has been rising, and memory is a large bill of materials item for both servers and PCs. Whether that gets passed through to customers or absorbed into margin is the thing next quarter will test.

Beginner takeaway

Dell reported a record quarter across almost every line, beat both revenue and profit expectations by a wide margin, and raised its full-year outlook substantially. The most useful detail is not the headline growth rate — it is that the segment carrying the low-margin AI hardware expanded its operating margin anyway, which was the exact thing sceptics said could not happen.

The two numbers to keep an eye on going forward are the sequential (quarter-on-quarter) AI server revenue, which was nearly flat this time, and operating cash flow, which is not yet keeping pace with reported profit. Neither is a problem today; both are the sort of thing that shows up in the numbers before it shows up in a headline.

FAQ

Why does Dell's fiscal Q2 end on 31 July when it is September? Dell's fiscal year runs roughly February to January, so its "fiscal 2027" second quarter covers May–July 2026. Many technology companies use offset fiscal years, which is why a company can report "Q2 FY27" in the calendar third quarter of 2026.

What is the difference between GAAP EPS of $6.34 and non-GAAP EPS of $7.04? GAAP follows the standard accounting rules. Non-GAAP strips out items management considers non-operational — mainly stock-based compensation and amortisation of acquired intangibles. Neither is "the real number"; GAAP is the audited one, non-GAAP is what analyst estimates are usually quoted against, which is why beats and misses are measured on it.

Is a $95bn backlog the same as $95bn of future revenue? No. Backlog is orders received but not yet recognised as revenue. It signals demand, but the timing depends on component supply and customer deployment schedules, and orders can in principle be modified or cancelled. It is a strong indicator, not a guarantee.

Why did operating cash flow fall while profit rose? Because growing a hardware business consumes cash up front. Dell has to buy components and build systems before customers pay for them, so inventory and receivables rise and temporarily absorb cash that profit has already recorded. It is normal in a fast-scaling quarter, but persistent divergence between profit and cash is worth watching.

As of 1 September 2026. Source: official SEC filing — read it directly here. We summarise filings for education and may make errors, so always verify against the official document. Educational content only — not investment advice, not a buy/sell recommendation.