Executive Summary
Dell Technologies reported a solid QQ2 2026 performance, with revenue of $29.776 billion, up 22.2% year-over-year and 27.4% quarter-over-quarter. Gross profit of $5.447 billion yielded a gross margin of 18.29%, while operating income reached $1.773 billion for an operating margin of 5.95%. Net income stood at $1.164 billion, and diluted earnings per share (EPS) was $1.70. Free cash flow (FCF) totaled $1.868 billion, underscoring strong cash generation and healthy capital allocation, including a sizable stock repurchase and continued dividend funding. The company maintains a robust cash position with $8.145 billion in cash and equivalents, and net debt of approximately $20.54 billion after financing activity. Despite a negative book equity position driven by high intangible assets and goodwill, Dell’s ongoing FCF, debt management, and revenue growth point to a constructive near-term outlook as AI/cloud demand supports data-center solutions and client-server refresh cycles.
Key Performance Indicators
Key Insights
Revenue: $29.776B, YoY +22.2%, QoQ +27.37%; Gross Profit: $5.447B, Gross Margin 18.29%, YoY +2.64%, QoQ +10.33%; Operating Income: $1.773B, Margin 5.95%, YoY +6.29%, QoQ +52.19%; Net Income: $1.164B, Margin 3.91%, YoY +2.83%, QoQ +20.62%; EPS (Diluted): $1.70; EBITDA: $0.756B; Operating Cash Flow: $2.543B; Free Cash Flow: $1.869B; Cash & Equivalents: $8.145B; Net Debt: $20.544B; Total Debt: $28.689B; Current Assets: $45.512B; Current Liabilities: $54.862B; Total Assets: $89.176B; Negative sh...
Financial Highlights
Revenue: $29.776B, YoY +22.2%, QoQ +27.37%; Gross Profit: $5.447B, Gross Margin 18.29%, YoY +2.64%, QoQ +10.33%; Operating Income: $1.773B, Margin 5.95%, YoY +6.29%, QoQ +52.19%; Net Income: $1.164B, Margin 3.91%, YoY +2.83%, QoQ +20.62%; EPS (Diluted): $1.70; EBITDA: $0.756B; Operating Cash Flow: $2.543B; Free Cash Flow: $1.869B; Cash & Equivalents: $8.145B; Net Debt: $20.544B; Total Debt: $28.689B; Current Assets: $45.512B; Current Liabilities: $54.862B; Total Assets: $89.176B; Negative shareholders’ equity: -$2.767B; Capex: $0.675B.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
29.78B |
22.20% |
27.37% |
| Gross Profit |
5.45B |
2.64% |
10.33% |
| Operating Income |
1.77B |
6.29% |
52.19% |
| Net Income |
1.16B |
2.83% |
20.62% |
| EPS |
1.68 |
N/A |
20.86% |
Management Commentary
No management quotes were provided in the source transcript data. The qualitative summary below reflects the disclosed financial results and typical management commentary observed in Dell’s QQ2 release cycle. - Revenue growth driven by a favorable mix toward enterprise solutions and data-center/aix infrastructure, with signs of improving demand in ESG (Servers, Networking, Storage) as hyperscale and enterprise customers accelerate refresh cycles. - Margin dynamics show a compression from Q1 due to continued competitive pricing pressures and product mix but still delivered positive operating leverage as cost controls and higher-margin product/solution offerings offset some cost headwinds. - Cash flow remained robust with CFO of $2.543B and FCF of $1.868B, underscoring Dell’s ability to fund capital returns and debt repayment while maintaining liquidity. - Capital allocation remained active, including $945M in share repurchases and $366M in dividends, consistent with a disciplined approach to returning capital to shareholders while financing ongoing invest ments in core growth of ESG and Client Solutions portfolios.
Forward Guidance
No explicit forward-looking guidance was provided in the data set. Management commentary typically emphasizes continued demand strength in enterprise and data-center environments, with a focus on AI acceleration, cloud build-outs, and modernization of IT infrastructure. Investors should monitor: (1) trajectory of data-center hardware demand and server/storage refresh cycles, (2) supply chain normalization and component pricing, (3) execution on cost management and gross margin recovery, and (4) balance sheet deleveraging aided by continued free cash flow generation. The absence of formal guidance implies sensitivity to macroeconomic variables and customer procurement cycles, but the current FCF profile provides some resilience to near-term volatility.