"Dell ( NYSE: DELL) reports fiscal Q2 2026 earnings after the close. The PC and server giant has become a key player in the AI infrastructure buildout, booking more than $12 billion in AI server orders in Q1 alone. However, profitability pressures in PCs and traditional servers weighed on results, with EPS missing by 8% despite record revenue. The key question tonight is whether Dell can turn that $14B+ backlog into profitable growth. Here are the figures Wall Street is expecting."
"AI Servers & Backlog Conversion- $12.1B in AI orders booked in Q1, with shipments of $1.8B. Backlog grew to $14.4B. Management reaffirmed $15B+ AI revenue target for FY2026. Enterprise Adoption & Sovereign AI- 3,000+ enterprise customers now deploying Dell AI Factories. Orders span Blackwell, Hopper, ARM, and x86 architectures. Department of Energy win (NERSC-10) highlights sovereign AI traction. Traditional Server Moderation- While AI drove record ISG revenue, traditional server demand slowed in North America. Dell expects sub-seasonal performance in Q2, a key risk for gross margins."
Dell reported fiscal Q2 2026 results driven by record revenue, but EPS missed by 8% due to profitability pressures in PCs and traditional servers. The company booked over $12 billion in AI server orders in Q1 and shipped $1.8 billion, growing its AI backlog to $14.4 billion and reaffirming a $15B+ AI revenue target for FY2026. Commercial PC demand rose 9% year-over-year while consumer PC demand fell 19% year-over-year. Gross margin dipped 80 basis points to 21.6%, and management guided Q2 gross margin dollars to rise about 10% sequentially. Key risks include converting the AI backlog into profitable growth amid traditional server softness and tariff-driven margin headwinds.
Read at 24/7 Wall St.
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