Revenue growth accelerated to 87.5% in 2027Q1, though gross margins contracted to 17.8% as the product mix shifted toward lower-margin AI server volume.
| Metric | TTM | Jan'26 | Jan'25 | Feb'24 | Feb'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 |
|---|
| Sales/Revenue | 134B | 113.54B | 95.57B | 88.42B | 102.3B | 101.2B | 86.67B | 84.81B | 90.62B | 79.04B | 62.16B | 50.91B | 53.98B | 56.38B |
| Revenue Growth % | 38.75% | 18.8% | 8.08% | -13.56% | 1.09% | 16.76% | 2.19% | -6.41% | 14.65% | 27.15% | 22.1% | -5.68% | -4.25% | - |
| Cost of Goods Sold | 108.33B | 90.83B | 74.32B | 67.36B | 79.61B | 79.31B | 66.53B | 64.18B | 65.57B | 58.5B | 48.52B | 42.52B | 45.24B | 46.89B |
| COGS % of Revenue | - | 80% | 77.76% | 76.17% | 77.82% | 78.37% | 76.76% | 75.67% | 72.35% | 74.02% | 78.04% | 83.53% | 83.81% | 83.18% |
| Gross Profit | 25.67B | 22.71B | 21.25B | 21.07B | 22.69B | 21.89B | 20.14B | 20.64B | 25.05B | 20.54B | 13.65B | 8.39B | 8.74B | 9.48B |
| Gross Margin % | 19.16% | 20% | 22.24% | 23.83% | 22.18% | 21.63% | 23.24% | 24.33% | 27.65% | 25.98% | 21.96% | 16.47% | 16.19% | 16.82% |
| Gross Profit Growth % | - | 6.86% | 0.86% | -7.13% | 3.63% | 8.69% | -2.42% | -17.62% | 21.99% | 50.47% | 62.74% | -4.03% | -7.87% | - |
| Operating Expenses | 14.98B | 14.26B | 15.01B | 15.66B | 16.91B | 17.23B | 16.45B | 18.27B | 25.24B | 22.95B | 16.04B | 8.9B | 9.19B | 10.77B |
| OpEx % of Revenue | - | 12.56% | 15.71% | 17.71% | 16.53% | 17.03% | 18.99% | 21.54% | 27.86% | 29.04% | 25.8% | 17.48% | 17.02% | 19.09% |
| Selling, General & Admin | 11.54B | 11.12B | 11.95B | 12.34B | 13.77B | 14.56B | 14B | 15.82B | 20.64B | 18.57B | 13.4B | 7.85B | 8.27B | 8.91B |
| SG&A % of Revenue | - | 9.79% | 12.51% | 13.95% | 13.46% | 14.38% | 16.15% | 18.65% | 22.78% | 23.49% | 21.56% | 15.42% | 15.32% | 15.8% |
| Research & Development | 3.32B | 3.14B | 3.06B | 2.8B | 2.78B | 2.58B | 2.46B | 2.45B | 4.6B | 4.38B | 2.64B | 1.05B | 920M | 1.27B |
| R&D % of Revenue | - | 2.77% | 3.2% | 3.17% | 2.72% | 2.55% | 2.83% | 2.89% | 5.08% | 5.55% | 4.24% | 2.06% | 1.7% | 2.26% |
| Other Operating Expenses | 1000K | 0 | 0 | 522M | 363M | 98M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 586M |
| Operating Income | 10.69B | 8.45B | 6.24B | 5.41B | 5.77B | 4.66B | 3.69B | 2.37B | -191M | -2.42B | -2.39B | -514M | -448M | -1.28B |
| Operating Margin % | 7.98% | 7.44% | 6.53% | 6.12% | 5.64% | 4.6% | 4.25% | 2.79% | -0.21% | -3.06% | -3.84% | -1.01% | -0.83% | -2.27% |
| Operating Income Growth % | - | 35.42% | 15.27% | -6.24% | 23.87% | 26.43% | 55.75% | 1338.74% | 92.09% | -1.09% | -364.98% | -14.73% | 65% | - |
| EBITDA | 11.14B | 11.47B | 9.36B | 8.71B | 8.93B | 9.21B | 9.07B | 8.51B | 7.55B | 6.22B | 2.55B | 2.36B | 2.53B | 472M |
| EBITDA Margin % | 8.31% | 10.11% | 9.79% | 9.85% | 8.73% | 9.1% | 10.47% | 10.03% | 8.34% | 7.87% | 4.1% | 4.63% | 4.69% | 0.84% |
| EBITDA Growth % | 18.58% | 22.6% | 7.41% | -2.39% | -3.07% | 1.49% | 6.65% | 12.63% | 21.5% | 144.03% | 8.06% | -6.76% | 435.81% | - |
| D&A (Non-Cash Add-back) | 156M | 3.03B | 3.12B | 3.3B | 3.16B | 4.55B | 5.39B | 6.14B | 7.75B | 8.63B | 4.94B | 2.87B | 2.98B | 1.75B |
| EBIT | 10.77B | 8.82B | 6.46B | 5.59B | 4.51B | 7.46B | 4.4B | 2.35B | 258M | -2.25B | -2.35B | -584M | -408M | -644M |
| Net Interest Income | -472M | -1.28B | -1.25B | -1.17B | -1.18B | -1.48B | -1.9B | -2.3B | -2.31B | -2.31B | -1.69B | -663M | -760M | -351M |
| Interest Income | 419M | 279M | 160M | 329M | 100M | 62M | 148M | 99M | 313M | 207M | 102M | 39M | 47M | 0 |
| Interest Expense | 891M | 1.56B | 1.41B | 1.5B | 1.28B | 1.54B | 2.05B | 2.4B | 2.62B | 2.52B | 1.8B | 702M | 807M | 351M |
| Other Income/Expense | -565M | -1.18B | -1.19B | -1.32B | -2.55B | 1.26B | -1.34B | -2.42B | -2.17B | -2.35B | -2.1B | -772M | -767M | -402M |
| Pretax Income | 10.13B | 7.26B | 5.05B | 4.09B | 3.23B | 5.92B | 2.35B | -51M | -2.36B | -4.77B | -4.49B | -1.29B | -1.22B | -1.68B |
| Pretax Margin % | 7.56% | 6.4% | 5.28% | 4.62% | 3.15% | 5.85% | 2.71% | -0.06% | -2.61% | -6.03% | -7.23% | -2.53% | -2.25% | -2.98% |
| Income Tax | 1.72B | 1.33B | 472M | 715M | 803M | 981M | 101M | -572M | -180M | -1.84B | -1.42B | -118M | -107M | 23M |
| Effective Tax Rate % | 16.97% | 18.27% | 9.35% | 17.49% | 24.9% | 16.56% | 4.31% | 1121.57% | 7.62% | 38.65% | 31.6% | 9.18% | 8.81% | -1.37% |
| Net Income | 8.41B | 5.94B | 4.59B | 3.39B | 2.44B | 5.56B | 3.25B | 4.62B | -2.31B | -2.85B | -1.17B | -1.1B | -1.22B | -1.71B |
| Net Margin % | 6.28% | 5.23% | 4.81% | 3.83% | 2.39% | 5.5% | 3.75% | 5.44% | -2.55% | -3.6% | -1.88% | -2.17% | -2.26% | -3.02% |
| Net Income Growth % | 87.87% | 29.27% | 35.54% | 38.74% | -56.1% | 71.17% | -29.59% | 299.83% | 18.92% | -144.13% | -5.71% | 9.58% | 28.39% | - |
| Net Income (Continuing) | 8.41B | 5.94B | 4.58B | 3.37B | 2.42B | 4.94B | 2.25B | 521M | -2.18B | -2.93B | -3.07B | -1.17B | -1.11B | -1.71B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 615M | 1B | 5.01B | 0 | 0 | 1.92B | 64M | -113M | 0 |
| Minority Interest | 0 | 0 | 95M | 95M | 97M | 105M | 5.07B | 4.73B | 4.82B | 5.77B | 5.77B | 0 | 0 | 0 |
| EPS (Diluted) | 12.82 | 8.68 | 6.38 | 4.60 | 3.24 | 7.02 | 4.22 | 6.03 | -2.96 | -3.70 | -1.62 | -1.54 | -1.70 | -4.22 |
| EPS Growth % | 100.8% | 36.05% | 38.7% | 41.98% | -53.85% | 66.35% | -30.02% | 303.72% | 20% | -128.4% | -5.19% | 9.41% | 59.72% | - |
| EPS (Basic) | - | 8.96 | 6.51 | 4.71 | 3.33 | 7.30 | 4.37 | 6.38 | -2.96 | -3.70 | -1.62 | -1.54 | -1.55 | -4.22 |
| Diluted Shares Outstanding | 656M | 683.87M | 724M | 736M | 753M | 791M | 767M | 751M | 719M | 718.43M | 718.43M | 718.43M | 718.43M | 404M |
| Basic Shares Outstanding | 649M | 662.69M | 696.13M | 736M | 734M | 762M | 744M | 724M | 719M | 770M | 718.43M | 718.43M | 718.43M | 403.95M |
| Dividend Payout Ratio | - | 24.58% | 27.77% | 31.64% | 39.48% | - | - | - | - | - | - | - | - | - |
AI Server Margin Dilution
According to the most recent quarterly filings, Dell's revenue growth accelerated to 87.5% in 2027Q1, a significant departure from the single-digit growth observed in prior periods, primarily fueled by massive demand for AI-optimized server deployments within the Infrastructure Solutions Group segment.
The dramatic revenue expansion suggests a successful capture of generative AI infrastructure spending, though the sustainability of this growth rate remains uncertain given the cyclical nature of hardware refresh cycles. Investors should monitor whether this top-line momentum can be maintained as the initial wave of enterprise AI capital expenditure begins to normalize.
As reported in the latest income statement, Dell's gross margin contracted to 17.8% in 2027Q1, down from the 20-23% range maintained over the previous two years, reflecting the lower-margin profile inherent in high-volume AI server shipments compared to traditional enterprise storage solutions.
This margin compression appears to be a structural trade-off for the rapid revenue growth currently being realized. The shift in product mix toward lower-margin compute units warrants further investigation into whether the company can achieve sufficient operating leverage to offset these thinner gross margins over the long term.
Based on the provided financial data, operating income reached $3.7B in 2027Q1, demonstrating that Dell is successfully scaling its operating infrastructure alongside its revenue surge, as operating margins improved to 8.3% despite the significant headwinds faced at the gross margin level.
The ability to expand operating margins while gross margins are under pressure suggests disciplined expense management within SG&A. This indicates that the company's existing operational footprint is capable of absorbing large volume spikes without requiring proportional increases in overhead costs.
Analysis of the income statement reveals that Dell reported $3.4B in net income for 2027Q1 with zero stock-based compensation expense, a notable shift from the $189M charge recorded in the prior quarter, which enhances the quality of reported earnings for shareholders.
The absence of stock-based compensation in the most recent period suggests a potential change in compensation structure or a temporary accounting anomaly that warrants further investigation. Investors should be cautious, as the lack of this non-cash expense artificially inflates net income relative to periods where equity-based incentives were active.
While headline revenue growth is impressive, the 2027Q1 data suggests a potential 'profitless prosperity' scenario where the company is trading high-margin storage revenue for lower-margin AI server volume, which may lead to long-term margin erosion if the product mix does not rebalance.
Short-sellers may focus on the fact that gross margins have fallen to their lowest point in the ten-quarter series, suggesting that the current growth trajectory may be less profitable than the market anticipates. The reliance on large-scale, low-margin hardware deployments may leave the company vulnerable if enterprise IT spending shifts away from AI-specific compute.
Quick answers to the most common questions about buying DELL stock.
For fiscal year 2026, Dell Technologies Inc. (DELL) reported total revenue of $113.54B. This represents a 101.4% increase compared to $56.38B in 2014.
Dell Technologies Inc. (DELL) is profitable, generating $5.94B in net income for the fiscal year ending 2026 with a net profit margin of 5.2%.
Dell Technologies Inc. (DELL) reported an operating income of $8.45B, resulting in an operating profit margin of 7.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Dell Technologies Inc. (DELL) generated $22.71B in gross profit for the year, representing a gross profit margin of 20.0%. This demonstrates the company's core pricing power and production efficiency.