Dell Beats Q4 Estimates with $9B AI Server Revenue and $33.4B Sales
Dell reported fiscal Q4 non-GAAP EPS of $3.89, up 45% y/y and beating estimates by 9.9%, as revenues climbed 39% y/y to $33.4B, driven by a 53% gain in product sales. The company ended fiscal 2026 with a $43B AI backlog and guided Q1’27 revenue to $35.2B (51% growth).
1. Q4 Earnings Overview
Dell delivered fiscal Q4 non-GAAP EPS of $3.89, up 45% year-over-year and beating estimates by 9.9%, as revenues climbed 39% y/y to $33.4B. Product revenues rose 53% to $27.6B while services dipped 2% to $5.8B; Infrastructure Solutions Group sales jumped 73% to $19.6B and Commercial Client Group reached $13.5B, up 14%.
2. AI Server Performance
AI-optimized server revenue surged 342% y/y to $9B, driving record quarterly orders of $34.1B and total fiscal 2026 AI orders of $64.1B. The company shipped $25.2B of AI systems in Q4 and exited the quarter with a $43B AI backlog, highlighting sustained enterprise demand.
3. Fiscal 2027 Guidance
For Q1 fiscal 2027, Dell expects revenues of $34.7B–$35.7B (51% y/y growth), including $13B from AI servers and a 2% rise in Commercial Client sales. Full-year guidance calls for $138B–$142B in revenue (23% growth) and non-GAAP EPS of $12.90, underpinned by over $50B in AI server shipments.
4. Balance Sheet and Cash Flow
Dell ended the quarter with $11.5B in cash and cash equivalents against $31.5B in debt, generated $4.7B in operating cash flow and $5.1B in free cash flow, and returned $2.2B of capital to shareholders in Q4, reinforcing financial flexibility.