Dell Technologies has reported revenue of $23.4 billion (up 5 percent) and operating income of $1.2 billion (up 21 percent) for its fiscal-2026 first-quarter.
Dell’s revenue in the first-quarter of fiscal-2026 reflects growth across key segments. The Infrastructure Solutions Group (ISG) posted revenue of $10.3 billion (up 12 percent), driven by record-high servers and networking revenue of $6.3 billion (up 16 percent), and storage revenue of $4 billion (up 6 percent). ISG operating income surged 36 percent to reach $1.0 billion.
PC focus
The Client Solutions Group (CSG), which includes notebooks and desktops, reported revenue of $12.5 billion (up 5 percent), with commercial PC revenue of $11 billion ((up 9 percent), and consumer PC revenue of $1.5 billion (down 19 percent. CSG operating income came in at $653 million (down 16 percent). These results demonstrate Dell’s continued strength in commercial and infrastructure markets, despite softness in the consumer segment.
Global PC shipments are expected to reach 274 million units in 2025, marking a 4.1 percent increase from the previous year. This growth is driven in part by a 90-day tariff pause and exemption for personal computers, which has led PC manufacturers to ramp up shipments in the US, according to Malini Paul, senior research manager of Devices Research.
However, there remains uncertainty about the PC market beyond this period, and IDC forecasts a slight contraction in 2026 due to volume stabilization after the Windows 11 migration and a tough year-over-year comparison. While commercial demand for PCs is expected to remain healthy in 2025, rising prices and declining consumer sentiment amid worsening macroeconomic conditions could negatively impact the market in the second half of the year, IDC said in a report.
AI focus
Dell’s revenue growth is increasingly driven by its strategic investments in AI-optimized infrastructure. The surge in demand for AI-powered servers, equipped with Nvidia’s cutting-edge chips, has positioned Dell as a key player in the rapidly evolving AI market. With AI workloads requiring specialized compute resources, Dell has capitalized on this need by delivering high-performance servers that meet the demands of customers such as xAI and CoreWeave.
In the first quarter of fiscal 2026 alone, Dell secured $12.1 billion in AI orders — more than the total shipments of AI servers in all of fiscal 2025 — highlighting the extraordinary momentum of its AI portfolio. This has left the company with a backlog of $14.4 billion, demonstrating sustained demand.
The impact of AI-driven revenue is clearly reflected in Dell’s first-quarter performance: Infrastructure Solutions Group revenue grew 12 percent year over year, with servers and networking revenue reaching a record $6.3 billion, up 16 percent. This surge in AI server sales, coupled with strategic partnerships such as the U.S. Department of Energy’s new supercomputer Doudna — built on Dell and Nvidia’s technology — underscores the critical role AI is playing in Dell’s growth trajectory, Reuters news report said.
Jeff Clarke, Dell’s vice chairman and chief operating officer, in the earnings report, has highlighted the company’s record-breaking performance in servers and networking, achieving $6.3 billion in revenue in the first quarter.
Jeff Clarke also underscores the soaring demand for Dell’s AI-optimized servers, as reflected by $12.1 billion in AI orders in a single quarter — more than the total AI shipments for all of fiscal 2025. This demand has created a $14.4 billion backlog, signaling strong, sustained interest in Dell’s AI solutions.
Better days ahead
Despite challenges such as competitive pricing, tariffs, and a shifting geographic mix, Dell has raised its annual profit forecast, indicating confidence in its ability to sustain AI-fueled growth. The company expects full-year adjusted profit to reach $9.40 per share, up from its previous forecast of $9.30, while full-year revenue is projected to grow 8 percent at the midpoint.
Baburajan Kizhakedath
