StorageNarrow moat

Dell Technologies (DELL) — moat facet

Storage came to Dell with EMC, and at $16.6 billion it sells less than it did in fiscal 2023.

Storage is the part of Dell that came from EMC, and it has not grown in years. It sold $16,631 million in fiscal 2026, about 15% of company revenue and about 27% of the infrastructure segment12.

Storage revenue by fiscal year ($M)2,217FY20168,942FY201716,465FY202217,958FY202316,261FY202416,631FY2026Dell Forms 10-K FY2017, FY2024 and FY2026; EMC from September 2016
The EMC step, then a plateau.

What is inside is the systems that hold corporate data: arrays, file and object storage and the software that manages them, sold with multi-year support. Dell's infrastructure segment was created in fiscal 2017 when "EMC's Information Storage segment and our existing Enterprise Solutions Group were combined"3.

The history is one acquisition and a long plateau. Dell's own storage sales were $2,346 million in fiscal 2015 and $2,217 million in fiscal 2016; in fiscal 2017, with EMC included from September 2016, storage revenue rose 303% to $8,942 million4. The EMC deal was financed with $45.9 billion of new debt5. Storage then sold $16,465 million in fiscal 2022, $17,958 million in fiscal 2023, $16,261 million in fiscal 2024, $16,457 million in fiscal 2025 and $16,631 million in fiscal 202667. Fiscal 2026 was still about 7% below fiscal 20238.

How it is paid: hardware sold upfront, with maintenance and support contracts that run for years and are recognised over time. That support is part of the services line whose margin is about 44.8%9, which is why storage matters more to Dell's profit than its revenue share suggests. Dell does not disclose storage profitability separately; it reports operating income only for the whole infrastructure segment10.

Growth was 1% in fiscal 2026, which Dell attributed to its core storage offerings11. The recent quarters are better: storage sold $4,797 million in the fourth quarter of fiscal 2026, $4,334 million in the first quarter of fiscal 2027 and $4,850 million in the second, up 26%121314. The Future Bets page on storage in the AI rack takes up whether that is AI demand or price.

The outlook depends on attachment: whether customers building AI clusters buy Dell storage alongside Dell servers. The goodwill Dell still carries from EMC, $19,547 million across the company15, is an accounting reminder of what was paid for this business.

Storage is a steady, sticky business that has lost its growth. Its annual revenue is the number that will settle the question: fiscal 2027 above $18 billion, a record, would mean AI has revived it; another year near $16.5 billion would confirm it as a mature line living on its installed base.

Moat trajectory: Holding steady

FY2026 +1%; Q2 FY2027 +26%.

The number that tests this moat
Reported
Storage revenue, full year
$16,631M (FY2026), +1%

The EMC line's growth; FY2027 above $18bn would mean AI has revived it.

Source: Dell Technologies Form 10-K, FY2026 ↗
References
  1. ReportedIt sold $16,631 million in fiscal 2026, about 15% of company revenue and about 27% of the infrastructure segment.
    Dell Technologies Form 10-K for fiscal 2026 (year ended 30 January 2026) - Item 7 MD&A and segment note: ISG and CSG revenue, operating income and drivers. — FY2026 · publ. March 2026 · source ↗
  2. Moat Explorer calcIt sold $16,631 million in fiscal 2026, about 15% of company revenue and about 27% of the infrastructure segment.
    Moat Explorer calculation from Dell Technologies' reported figures ($ millions unless stated; fiscal years labelled by the year they end). Margins FY2026: gross margin 22,707 / 113,538 = 20.0% (FY2024 21,069 / 88,425 = 23.8%; FY2025 21,250 / 95,567 = 22.2%); operating margin 8,149 / 113,538 = 7.2%. Products gross margin 90,405 - 78,057 = 12,348, 12,348 / 90,405 = 13.7%; services gross margin 23,133 - 12,774 = 10,359, 10,359 / 23,133 = 44.8%; services share of revenue 23,133 / 113,538 = 20.4%; services share of gross margin 10,359 / 22,707 = 45.6%. Growth FY2026: revenue 113,538 / 95,567 - 1 = 18.8%; services 23,133 / 24,147 - 1 = -4.2%; ISG revenue 60,826 / 43,593 - 1 = 39.5%; ISG operating income 7,111 / 5,579 - 1 = 27.5%; United States 63,140 / 51,014 - 1 = 23.8%; foreign 50,398 / 44,553 - 1 = 13.1%. Revenue FY2024 to FY2026 113,538 / 88,425 - 1 = 28.4%; employees 97,000 / 120,000 - 1 = -19.2%; revenue per employee 88,425 / 120,000 = 0.74 and 113,538 / 97,000 = 1.17. AI servers: 24,683 / 1,873 = 13.2 times; share of revenue 24,683 / 113,538 = 21.7% (FY2024 1,873 / 88,425 = 2.1%); share of ISG 24,683 / 60,826 = 40.6%; Q2 FY2027 share of ISG 16,401 / 31,782 = 51.6%; first half 16,132 + 16,401 = 32,533, 32,533 / 74,000 = 44.0%; second half needed 74,000 - 32,533 = 41,467, about 20,700 a quarter; FY2027 guidance share 74.0 / 192.0 = 38.5%; FY2027 guidance 74.0 / 24.683 = 3.0 times. Orders: Q4 FY2026 AI orders about 64 - 30 = 34 billion; Q2 FY2027 orders to revenue 60.9 / 16.4 = 3.7. ISG share of segment operating income: FY2024 4,286 / 7,998 = 53.6%; FY2026 7,111 / 9,944 = 71.5%. Q2 FY2027 CSG share 1,142 / (4,781 + 1,142) = 19.3%. ISG operating margin: FY2022 3,736 / 34,366 = 10.9%; FY2023 5,045 / 38,356 = 13.2%. CSG operating margin: FY2024 3,712 / 48,916 = 7.6%; Q1 FY2026 653 / 12,509 = 5.2%; Q2 FY2026 803 / 12,503 = 6.4%; Q4 FY2026 629 / 13,494 = 4.7%; Q1 FY2027 1,170 / 14,609 = 8.0%; Q2 FY2027 1,142 / 15,034 = 7.6%. CSG operating income FY2022 to FY2026 2,833 / 4,365 - 1 = -35.1%. Q2 FY2027 client: CSG revenue 15,034 / 12,503 - 1 = 20.2%; CSG operating income 1,142 / 803 - 1 = 42.2%. Traditional servers and networking first half FY2027 8,543 + 10,531 = 19,074. Servers and networking growth FY2025 27,136 / 17,624 - 1 = 54.0%, FY2026 44,195 / 27,136 - 1 = 62.9%; share of revenue 44,195 / 113,538 = 38.9%; Q2 FY2027 16,401 + 10,531 = 26,932, 26,932 / 46,971 = 57.3%. Line changes FY2022 to FY2026: servers and networking 44,195 / 17,901 - 1 = 146.9%; storage 16,631 / 16,465 - 1 = 1.0%; commercial 44,062 / 45,576 - 1 = -3.3%; consumer 6,922 / 15,888 - 1 = -56.4%. Storage 16,631 / 17,958 - 1 = -7.4%; storage share of revenue 16,631 / 113,538 = 14.6%; storage share of ISG 16,631 / 60,826 = 27.3%. Consumer share of revenue 15,888 / 101,197 = 15.7% (FY2022) and 6,922 / 113,538 = 6.1% (FY2026); consumer against FY2015 6,922 / 10,880 - 1 = -36.4%. Commercial share of revenue 44,062 / 113,538 = 38.8%. Servers and networking plus commercial 44,195 + 44,062 = 88,257, 88,257 / 113,538 = 77.7%. Corporate and other FY2022 101,197 - 17,901 - 16,465 - 45,576 - 15,888 = 5,367; corporate and other change 1,728 / 5,624 - 1 = -69.3%. Geography: United States share 43,986 / 88,425 = 49.7% (FY2024), 51,014 / 95,567 = 53.4% (FY2025), 63,140 / 113,538 = 55.6% (FY2026). Largest customer: 12% x 113,538 = 13,625; 13,625 / 60,826 = 22.4% of ISG; all other customers 113,538 - 13,625 = 99,913. Remaining performance obligations due within twelve months: 132 x 77% = 101.6 billion. Server share: Dell lead over Supermicro 16.5 - 7.6 = 8.9 points in Q1 2026 against 10 - 9.5 = 0.5 points in 2025; Supermicro plus HPE 7.6 + 3.0 = 10.6%. Inventories 21,290 / 10,437 = 2.04 times; payables 49,723 - 33,630 = 16,093; inventory increase 21,290 - 10,437 = 10,853; payables less inventories 49,723 - 21,290 = 28,433; payables less inventories and receivables 49,723 - 21,290 - 22,918 = 5,515. DFS-related debt 20,660 / 14,646 - 1 = 41.1%. Debt: FY2020 7,737 + 44,319 = 52,056; net core debt 13,983 - 11,569 = 2,414; net debt 31,503 - 11,528 = 19,975 (January 2026) and 34,466 - 11,569 = 22,897 (July 2026); interest paid 1,354 / 8,149 = 16.6%. Goodwill and intangibles 19,547 + 4,533 = 24,080, 24,080 / 101,286 = 23.8%; other assets 101,286 - 24,080 = 77,206. Capital returns: buybacks first half FY2027 5.4 billion / 20 million shares = about $270 a share; dividends paid 1,459 / 5,936 = 24.6% of net income; annual dividend 0.37 x 4 = 1.48, 0.445 x 4 = 1.78, 0.525 x 4 = 2.10, 0.63 x 4 = 2.52, 2.52 / 1.48 - 1 = 70%; Q2 FY2027 buybacks and dividends 3,796 + 405 = 4,201. Guidance: FY2027 revenue 192.0 / 113.538 - 1 = 69%; non-AI revenue 192.0 - 74.0 = 118.0 against 113,538 - 24,683 = 88,855, 118.0 / 88.855 - 1 = 32.8%; implied second half 192.0 - 90.8 = 101.2 billion; implied fourth quarter 101.2 - 49.0 = 52.2 billion; implied second-half GAAP EPS 24.37 - 11.58 = 12.79; guidance raised 192 - 140 = 52 billion. Voting at 1 September 2026: Class A 276,744,341 / 635,812,750 = 43.5% of shares; votes 276.7 million x 10 = 2,767 million, Class B 43.6 million x 10 = 436 million, Class C 315.4 million; total 3,519 million; Class A 2,767 / 3,519 = 78.6%, Class B 436 / 3,519 = 12.4%, Class C 315 / 3,519 = 9.0%. Valuation: trailing revenue 113,538 - 53,154 + 90,813 = 151,197; trailing net income 5,936 - 2,129 + 7,571 = 11,378; P/E 357.89 / 11.378 = 31.5; P/S 357.89 / 151.2 = 2.37; year-end market value over the next fiscal year: 37.89 / 4.616 = 8.2, 54.95 / 3.250 = 16.9, 42.90 / 5.563 = 7.7, 28.80 / 2.442 = 11.8, 54.43 / 3.388 = 16.1, 82.18 / 4.592 = 17.9, 86.61 / 5.936 = 14.6. Q2 FY2027 cash from operations 2,225 / 4,133 = 54%. Further: ISG operating income 7,111 / 4,286 - 1 = 65.9%; Q2 FY2026 AI orders about 30 - 12.1 - 12.3 = 5.6 billion; operating income 8,149 / 2,622 = 3.1 times (FY2020 to FY2026); NVIDIA Data Center revenue against Dell ISG revenue 89.0 / 31.782 = 2.8 times; buybacks 2,080 + 2,588 + 6,014 = 10,682; ISG revenue 60,826 / 14,714 = 4.1 times (FY2015 to FY2026); IEIT, Lenovo and HPE 2025 server shares 4.1 + 4.0 + 3.1 = 11.2%; Commercial share of client revenue 45,576 / 61,464 = 74.2% (FY2022), 39,814 / 48,916 = 81.4% (FY2024); consumer share of revenue 9,102 / 88,425 = 10.3% (FY2024); Dell server growth against the market 244.1 / 80.4 = 3.0 times. Services share of Q2 FY2027 revenue 5,859 / 46,971 = 12.5%; commercial share of client revenue 44,062 / 50,984 = 86.4%; client revenue growth FY2026 50,984 / 48,393 - 1 = 5.4%; consumer Q1 FY2027 1,589 / 1,463 - 1 = 8.6%; CSG first half FY2027 2,312 / 29,643 = 7.8%; annual dividend cost 0.63 x 4 x 635.8 million = about 1,602; remaining performance obligations 132 / 38 = 3.5 times; EPS guidance 24.37 / 11.52 = 2.1 times; AI backlog against second-half AI revenue needed 95 / 41.5 = 2.3 times; commercial first half FY2027 13,020 + 13,192 = 26,212, 26,212 / 44,062 = 59.5%; storage share of ISG 16,261 / 33,885 = 48.0% (FY2024) and 4,850 / 31,782 = 15.3% (Q2 FY2027); consumer share of Q2 FY2027 revenue 1,842 / 46,971 = 3.9%; AI orders less AI revenue in Q2 FY2027 60.9 - 16.4 = 44.5 billion; consumer share of client revenue 10,880 / 39,634 = 27.5% (FY2015) and 6,922 / 50,984 = 13.6% (FY2026) - segment margins and growth rates. — FY2015-FY2027 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Dell Technologies' Forms 10-K and 10-Q, results releases, IDC data and market data; operands shown in the source line.
  3. ReportedDell's infrastructure segment was created in fiscal 2017 when "EMC's Information Storage segment and our existing Enterprise Solutions Group were combined".
    Dell Technologies Form 10-K for fiscal 2017 - the EMC acquisition, its financing and purchase price, and results for fiscal 2015-2017. — FY2017 · publ. March 2017 · source ↗
  4. ReportedDell's own storage sales were $2,346 million in fiscal 2015 and $2,217 million in fiscal 2016; in fiscal 2017, with EMC included from September 2016, storage revenue rose 303% to $8,942 million.
    Dell Technologies Form 10-K for fiscal 2017 - the EMC acquisition, its financing and purchase price, and results for fiscal 2015-2017. — FY2017 · publ. March 2017 · source ↗
  5. ReportedThe EMC deal was financed with $45.9 billion of new debt.
    Dell Technologies Form 10-K for fiscal 2017 - the EMC acquisition, its financing and purchase price, and results for fiscal 2015-2017. — FY2017 · publ. March 2017 · source ↗
  6. ReportedStorage then sold $16,465 million in fiscal 2022, $17,958 million in fiscal 2023, $16,261 million in fiscal 2024, $16,457 million in fiscal 2025 and $16,631 million in fiscal 2026.
    Dell Technologies Form 10-K for fiscal 2024 - segment revenue and operating income for fiscal 2022-2024, headcount, and the VMware spin-off and Boomi sale. — FY2024 · publ. March 2024 · source ↗
  7. ReportedStorage then sold $16,465 million in fiscal 2022, $17,958 million in fiscal 2023, $16,261 million in fiscal 2024, $16,457 million in fiscal 2025 and $16,631 million in fiscal 2026.
    Dell Technologies Form 10-K for fiscal 2026 (year ended 30 January 2026) - Item 1 business: history, customers, employees, channels and management. — FY2026 · publ. March 2026 · source ↗
  8. Moat Explorer calcFiscal 2026 was still about 7% below fiscal 2023.
    Moat Explorer calculation from Dell Technologies' reported figures ($ millions unless stated; fiscal years labelled by the year they end). Margins FY2026: gross margin 22,707 / 113,538 = 20.0% (FY2024 21,069 / 88,425 = 23.8%; FY2025 21,250 / 95,567 = 22.2%); operating margin 8,149 / 113,538 = 7.2%. Products gross margin 90,405 - 78,057 = 12,348, 12,348 / 90,405 = 13.7%; services gross margin 23,133 - 12,774 = 10,359, 10,359 / 23,133 = 44.8%; services share of revenue 23,133 / 113,538 = 20.4%; services share of gross margin 10,359 / 22,707 = 45.6%. Growth FY2026: revenue 113,538 / 95,567 - 1 = 18.8%; services 23,133 / 24,147 - 1 = -4.2%; ISG revenue 60,826 / 43,593 - 1 = 39.5%; ISG operating income 7,111 / 5,579 - 1 = 27.5%; United States 63,140 / 51,014 - 1 = 23.8%; foreign 50,398 / 44,553 - 1 = 13.1%. Revenue FY2024 to FY2026 113,538 / 88,425 - 1 = 28.4%; employees 97,000 / 120,000 - 1 = -19.2%; revenue per employee 88,425 / 120,000 = 0.74 and 113,538 / 97,000 = 1.17. AI servers: 24,683 / 1,873 = 13.2 times; share of revenue 24,683 / 113,538 = 21.7% (FY2024 1,873 / 88,425 = 2.1%); share of ISG 24,683 / 60,826 = 40.6%; Q2 FY2027 share of ISG 16,401 / 31,782 = 51.6%; first half 16,132 + 16,401 = 32,533, 32,533 / 74,000 = 44.0%; second half needed 74,000 - 32,533 = 41,467, about 20,700 a quarter; FY2027 guidance share 74.0 / 192.0 = 38.5%; FY2027 guidance 74.0 / 24.683 = 3.0 times. Orders: Q4 FY2026 AI orders about 64 - 30 = 34 billion; Q2 FY2027 orders to revenue 60.9 / 16.4 = 3.7. ISG share of segment operating income: FY2024 4,286 / 7,998 = 53.6%; FY2026 7,111 / 9,944 = 71.5%. Q2 FY2027 CSG share 1,142 / (4,781 + 1,142) = 19.3%. ISG operating margin: FY2022 3,736 / 34,366 = 10.9%; FY2023 5,045 / 38,356 = 13.2%. CSG operating margin: FY2024 3,712 / 48,916 = 7.6%; Q1 FY2026 653 / 12,509 = 5.2%; Q2 FY2026 803 / 12,503 = 6.4%; Q4 FY2026 629 / 13,494 = 4.7%; Q1 FY2027 1,170 / 14,609 = 8.0%; Q2 FY2027 1,142 / 15,034 = 7.6%. CSG operating income FY2022 to FY2026 2,833 / 4,365 - 1 = -35.1%. Q2 FY2027 client: CSG revenue 15,034 / 12,503 - 1 = 20.2%; CSG operating income 1,142 / 803 - 1 = 42.2%. Traditional servers and networking first half FY2027 8,543 + 10,531 = 19,074. Servers and networking growth FY2025 27,136 / 17,624 - 1 = 54.0%, FY2026 44,195 / 27,136 - 1 = 62.9%; share of revenue 44,195 / 113,538 = 38.9%; Q2 FY2027 16,401 + 10,531 = 26,932, 26,932 / 46,971 = 57.3%. Line changes FY2022 to FY2026: servers and networking 44,195 / 17,901 - 1 = 146.9%; storage 16,631 / 16,465 - 1 = 1.0%; commercial 44,062 / 45,576 - 1 = -3.3%; consumer 6,922 / 15,888 - 1 = -56.4%. Storage 16,631 / 17,958 - 1 = -7.4%; storage share of revenue 16,631 / 113,538 = 14.6%; storage share of ISG 16,631 / 60,826 = 27.3%. Consumer share of revenue 15,888 / 101,197 = 15.7% (FY2022) and 6,922 / 113,538 = 6.1% (FY2026); consumer against FY2015 6,922 / 10,880 - 1 = -36.4%. Commercial share of revenue 44,062 / 113,538 = 38.8%. Servers and networking plus commercial 44,195 + 44,062 = 88,257, 88,257 / 113,538 = 77.7%. Corporate and other FY2022 101,197 - 17,901 - 16,465 - 45,576 - 15,888 = 5,367; corporate and other change 1,728 / 5,624 - 1 = -69.3%. Geography: United States share 43,986 / 88,425 = 49.7% (FY2024), 51,014 / 95,567 = 53.4% (FY2025), 63,140 / 113,538 = 55.6% (FY2026). Largest customer: 12% x 113,538 = 13,625; 13,625 / 60,826 = 22.4% of ISG; all other customers 113,538 - 13,625 = 99,913. Remaining performance obligations due within twelve months: 132 x 77% = 101.6 billion. Server share: Dell lead over Supermicro 16.5 - 7.6 = 8.9 points in Q1 2026 against 10 - 9.5 = 0.5 points in 2025; Supermicro plus HPE 7.6 + 3.0 = 10.6%. Inventories 21,290 / 10,437 = 2.04 times; payables 49,723 - 33,630 = 16,093; inventory increase 21,290 - 10,437 = 10,853; payables less inventories 49,723 - 21,290 = 28,433; payables less inventories and receivables 49,723 - 21,290 - 22,918 = 5,515. DFS-related debt 20,660 / 14,646 - 1 = 41.1%. Debt: FY2020 7,737 + 44,319 = 52,056; net core debt 13,983 - 11,569 = 2,414; net debt 31,503 - 11,528 = 19,975 (January 2026) and 34,466 - 11,569 = 22,897 (July 2026); interest paid 1,354 / 8,149 = 16.6%. Goodwill and intangibles 19,547 + 4,533 = 24,080, 24,080 / 101,286 = 23.8%; other assets 101,286 - 24,080 = 77,206. Capital returns: buybacks first half FY2027 5.4 billion / 20 million shares = about $270 a share; dividends paid 1,459 / 5,936 = 24.6% of net income; annual dividend 0.37 x 4 = 1.48, 0.445 x 4 = 1.78, 0.525 x 4 = 2.10, 0.63 x 4 = 2.52, 2.52 / 1.48 - 1 = 70%; Q2 FY2027 buybacks and dividends 3,796 + 405 = 4,201. Guidance: FY2027 revenue 192.0 / 113.538 - 1 = 69%; non-AI revenue 192.0 - 74.0 = 118.0 against 113,538 - 24,683 = 88,855, 118.0 / 88.855 - 1 = 32.8%; implied second half 192.0 - 90.8 = 101.2 billion; implied fourth quarter 101.2 - 49.0 = 52.2 billion; implied second-half GAAP EPS 24.37 - 11.58 = 12.79; guidance raised 192 - 140 = 52 billion. Voting at 1 September 2026: Class A 276,744,341 / 635,812,750 = 43.5% of shares; votes 276.7 million x 10 = 2,767 million, Class B 43.6 million x 10 = 436 million, Class C 315.4 million; total 3,519 million; Class A 2,767 / 3,519 = 78.6%, Class B 436 / 3,519 = 12.4%, Class C 315 / 3,519 = 9.0%. Valuation: trailing revenue 113,538 - 53,154 + 90,813 = 151,197; trailing net income 5,936 - 2,129 + 7,571 = 11,378; P/E 357.89 / 11.378 = 31.5; P/S 357.89 / 151.2 = 2.37; year-end market value over the next fiscal year: 37.89 / 4.616 = 8.2, 54.95 / 3.250 = 16.9, 42.90 / 5.563 = 7.7, 28.80 / 2.442 = 11.8, 54.43 / 3.388 = 16.1, 82.18 / 4.592 = 17.9, 86.61 / 5.936 = 14.6. Q2 FY2027 cash from operations 2,225 / 4,133 = 54%. Further: ISG operating income 7,111 / 4,286 - 1 = 65.9%; Q2 FY2026 AI orders about 30 - 12.1 - 12.3 = 5.6 billion; operating income 8,149 / 2,622 = 3.1 times (FY2020 to FY2026); NVIDIA Data Center revenue against Dell ISG revenue 89.0 / 31.782 = 2.8 times; buybacks 2,080 + 2,588 + 6,014 = 10,682; ISG revenue 60,826 / 14,714 = 4.1 times (FY2015 to FY2026); IEIT, Lenovo and HPE 2025 server shares 4.1 + 4.0 + 3.1 = 11.2%; Commercial share of client revenue 45,576 / 61,464 = 74.2% (FY2022), 39,814 / 48,916 = 81.4% (FY2024); consumer share of revenue 9,102 / 88,425 = 10.3% (FY2024); Dell server growth against the market 244.1 / 80.4 = 3.0 times. Services share of Q2 FY2027 revenue 5,859 / 46,971 = 12.5%; commercial share of client revenue 44,062 / 50,984 = 86.4%; client revenue growth FY2026 50,984 / 48,393 - 1 = 5.4%; consumer Q1 FY2027 1,589 / 1,463 - 1 = 8.6%; CSG first half FY2027 2,312 / 29,643 = 7.8%; annual dividend cost 0.63 x 4 x 635.8 million = about 1,602; remaining performance obligations 132 / 38 = 3.5 times; EPS guidance 24.37 / 11.52 = 2.1 times; AI backlog against second-half AI revenue needed 95 / 41.5 = 2.3 times; commercial first half FY2027 13,020 + 13,192 = 26,212, 26,212 / 44,062 = 59.5%; storage share of ISG 16,261 / 33,885 = 48.0% (FY2024) and 4,850 / 31,782 = 15.3% (Q2 FY2027); consumer share of Q2 FY2027 revenue 1,842 / 46,971 = 3.9%; AI orders less AI revenue in Q2 FY2027 60.9 - 16.4 = 44.5 billion; consumer share of client revenue 10,880 / 39,634 = 27.5% (FY2015) and 6,922 / 50,984 = 13.6% (FY2026) - segment margins and growth rates. — FY2015-FY2027 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Dell Technologies' Forms 10-K and 10-Q, results releases, IDC data and market data; operands shown in the source line.
  9. Moat Explorer calcThat support is part of the services line whose margin is about 44.8%, which is why storage matters more to Dell's profit than its revenue share suggests.
    Moat Explorer calculation from Dell Technologies' reported figures ($ millions unless stated; fiscal years labelled by the year they end). Margins FY2026: gross margin 22,707 / 113,538 = 20.0% (FY2024 21,069 / 88,425 = 23.8%; FY2025 21,250 / 95,567 = 22.2%); operating margin 8,149 / 113,538 = 7.2%. Products gross margin 90,405 - 78,057 = 12,348, 12,348 / 90,405 = 13.7%; services gross margin 23,133 - 12,774 = 10,359, 10,359 / 23,133 = 44.8%; services share of revenue 23,133 / 113,538 = 20.4%; services share of gross margin 10,359 / 22,707 = 45.6%. Growth FY2026: revenue 113,538 / 95,567 - 1 = 18.8%; services 23,133 / 24,147 - 1 = -4.2%; ISG revenue 60,826 / 43,593 - 1 = 39.5%; ISG operating income 7,111 / 5,579 - 1 = 27.5%; United States 63,140 / 51,014 - 1 = 23.8%; foreign 50,398 / 44,553 - 1 = 13.1%. Revenue FY2024 to FY2026 113,538 / 88,425 - 1 = 28.4%; employees 97,000 / 120,000 - 1 = -19.2%; revenue per employee 88,425 / 120,000 = 0.74 and 113,538 / 97,000 = 1.17. AI servers: 24,683 / 1,873 = 13.2 times; share of revenue 24,683 / 113,538 = 21.7% (FY2024 1,873 / 88,425 = 2.1%); share of ISG 24,683 / 60,826 = 40.6%; Q2 FY2027 share of ISG 16,401 / 31,782 = 51.6%; first half 16,132 + 16,401 = 32,533, 32,533 / 74,000 = 44.0%; second half needed 74,000 - 32,533 = 41,467, about 20,700 a quarter; FY2027 guidance share 74.0 / 192.0 = 38.5%; FY2027 guidance 74.0 / 24.683 = 3.0 times. Orders: Q4 FY2026 AI orders about 64 - 30 = 34 billion; Q2 FY2027 orders to revenue 60.9 / 16.4 = 3.7. ISG share of segment operating income: FY2024 4,286 / 7,998 = 53.6%; FY2026 7,111 / 9,944 = 71.5%. Q2 FY2027 CSG share 1,142 / (4,781 + 1,142) = 19.3%. ISG operating margin: FY2022 3,736 / 34,366 = 10.9%; FY2023 5,045 / 38,356 = 13.2%. CSG operating margin: FY2024 3,712 / 48,916 = 7.6%; Q1 FY2026 653 / 12,509 = 5.2%; Q2 FY2026 803 / 12,503 = 6.4%; Q4 FY2026 629 / 13,494 = 4.7%; Q1 FY2027 1,170 / 14,609 = 8.0%; Q2 FY2027 1,142 / 15,034 = 7.6%. CSG operating income FY2022 to FY2026 2,833 / 4,365 - 1 = -35.1%. Q2 FY2027 client: CSG revenue 15,034 / 12,503 - 1 = 20.2%; CSG operating income 1,142 / 803 - 1 = 42.2%. Traditional servers and networking first half FY2027 8,543 + 10,531 = 19,074. Servers and networking growth FY2025 27,136 / 17,624 - 1 = 54.0%, FY2026 44,195 / 27,136 - 1 = 62.9%; share of revenue 44,195 / 113,538 = 38.9%; Q2 FY2027 16,401 + 10,531 = 26,932, 26,932 / 46,971 = 57.3%. Line changes FY2022 to FY2026: servers and networking 44,195 / 17,901 - 1 = 146.9%; storage 16,631 / 16,465 - 1 = 1.0%; commercial 44,062 / 45,576 - 1 = -3.3%; consumer 6,922 / 15,888 - 1 = -56.4%. Storage 16,631 / 17,958 - 1 = -7.4%; storage share of revenue 16,631 / 113,538 = 14.6%; storage share of ISG 16,631 / 60,826 = 27.3%. Consumer share of revenue 15,888 / 101,197 = 15.7% (FY2022) and 6,922 / 113,538 = 6.1% (FY2026); consumer against FY2015 6,922 / 10,880 - 1 = -36.4%. Commercial share of revenue 44,062 / 113,538 = 38.8%. Servers and networking plus commercial 44,195 + 44,062 = 88,257, 88,257 / 113,538 = 77.7%. Corporate and other FY2022 101,197 - 17,901 - 16,465 - 45,576 - 15,888 = 5,367; corporate and other change 1,728 / 5,624 - 1 = -69.3%. Geography: United States share 43,986 / 88,425 = 49.7% (FY2024), 51,014 / 95,567 = 53.4% (FY2025), 63,140 / 113,538 = 55.6% (FY2026). Largest customer: 12% x 113,538 = 13,625; 13,625 / 60,826 = 22.4% of ISG; all other customers 113,538 - 13,625 = 99,913. Remaining performance obligations due within twelve months: 132 x 77% = 101.6 billion. Server share: Dell lead over Supermicro 16.5 - 7.6 = 8.9 points in Q1 2026 against 10 - 9.5 = 0.5 points in 2025; Supermicro plus HPE 7.6 + 3.0 = 10.6%. Inventories 21,290 / 10,437 = 2.04 times; payables 49,723 - 33,630 = 16,093; inventory increase 21,290 - 10,437 = 10,853; payables less inventories 49,723 - 21,290 = 28,433; payables less inventories and receivables 49,723 - 21,290 - 22,918 = 5,515. DFS-related debt 20,660 / 14,646 - 1 = 41.1%. Debt: FY2020 7,737 + 44,319 = 52,056; net core debt 13,983 - 11,569 = 2,414; net debt 31,503 - 11,528 = 19,975 (January 2026) and 34,466 - 11,569 = 22,897 (July 2026); interest paid 1,354 / 8,149 = 16.6%. Goodwill and intangibles 19,547 + 4,533 = 24,080, 24,080 / 101,286 = 23.8%; other assets 101,286 - 24,080 = 77,206. Capital returns: buybacks first half FY2027 5.4 billion / 20 million shares = about $270 a share; dividends paid 1,459 / 5,936 = 24.6% of net income; annual dividend 0.37 x 4 = 1.48, 0.445 x 4 = 1.78, 0.525 x 4 = 2.10, 0.63 x 4 = 2.52, 2.52 / 1.48 - 1 = 70%; Q2 FY2027 buybacks and dividends 3,796 + 405 = 4,201. Guidance: FY2027 revenue 192.0 / 113.538 - 1 = 69%; non-AI revenue 192.0 - 74.0 = 118.0 against 113,538 - 24,683 = 88,855, 118.0 / 88.855 - 1 = 32.8%; implied second half 192.0 - 90.8 = 101.2 billion; implied fourth quarter 101.2 - 49.0 = 52.2 billion; implied second-half GAAP EPS 24.37 - 11.58 = 12.79; guidance raised 192 - 140 = 52 billion. Voting at 1 September 2026: Class A 276,744,341 / 635,812,750 = 43.5% of shares; votes 276.7 million x 10 = 2,767 million, Class B 43.6 million x 10 = 436 million, Class C 315.4 million; total 3,519 million; Class A 2,767 / 3,519 = 78.6%, Class B 436 / 3,519 = 12.4%, Class C 315 / 3,519 = 9.0%. Valuation: trailing revenue 113,538 - 53,154 + 90,813 = 151,197; trailing net income 5,936 - 2,129 + 7,571 = 11,378; P/E 357.89 / 11.378 = 31.5; P/S 357.89 / 151.2 = 2.37; year-end market value over the next fiscal year: 37.89 / 4.616 = 8.2, 54.95 / 3.250 = 16.9, 42.90 / 5.563 = 7.7, 28.80 / 2.442 = 11.8, 54.43 / 3.388 = 16.1, 82.18 / 4.592 = 17.9, 86.61 / 5.936 = 14.6. Q2 FY2027 cash from operations 2,225 / 4,133 = 54%. Further: ISG operating income 7,111 / 4,286 - 1 = 65.9%; Q2 FY2026 AI orders about 30 - 12.1 - 12.3 = 5.6 billion; operating income 8,149 / 2,622 = 3.1 times (FY2020 to FY2026); NVIDIA Data Center revenue against Dell ISG revenue 89.0 / 31.782 = 2.8 times; buybacks 2,080 + 2,588 + 6,014 = 10,682; ISG revenue 60,826 / 14,714 = 4.1 times (FY2015 to FY2026); IEIT, Lenovo and HPE 2025 server shares 4.1 + 4.0 + 3.1 = 11.2%; Commercial share of client revenue 45,576 / 61,464 = 74.2% (FY2022), 39,814 / 48,916 = 81.4% (FY2024); consumer share of revenue 9,102 / 88,425 = 10.3% (FY2024); Dell server growth against the market 244.1 / 80.4 = 3.0 times. Services share of Q2 FY2027 revenue 5,859 / 46,971 = 12.5%; commercial share of client revenue 44,062 / 50,984 = 86.4%; client revenue growth FY2026 50,984 / 48,393 - 1 = 5.4%; consumer Q1 FY2027 1,589 / 1,463 - 1 = 8.6%; CSG first half FY2027 2,312 / 29,643 = 7.8%; annual dividend cost 0.63 x 4 x 635.8 million = about 1,602; remaining performance obligations 132 / 38 = 3.5 times; EPS guidance 24.37 / 11.52 = 2.1 times; AI backlog against second-half AI revenue needed 95 / 41.5 = 2.3 times; commercial first half FY2027 13,020 + 13,192 = 26,212, 26,212 / 44,062 = 59.5%; storage share of ISG 16,261 / 33,885 = 48.0% (FY2024) and 4,850 / 31,782 = 15.3% (Q2 FY2027); consumer share of Q2 FY2027 revenue 1,842 / 46,971 = 3.9%; AI orders less AI revenue in Q2 FY2027 60.9 - 16.4 = 44.5 billion; consumer share of client revenue 10,880 / 39,634 = 27.5% (FY2015) and 6,922 / 50,984 = 13.6% (FY2026) - segment margins and growth rates. — FY2015-FY2027 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Dell Technologies' Forms 10-K and 10-Q, results releases, IDC data and market data; operands shown in the source line.
  10. ReportedDell does not disclose storage profitability separately; it reports operating income only for the whole infrastructure segment.
    Dell Technologies Form 10-K for fiscal 2026 (year ended 30 January 2026) - Item 7 MD&A and segment note: ISG and CSG revenue, operating income and drivers. — FY2026 · publ. March 2026 · source ↗
  11. ReportedGrowth was 1% in fiscal 2026, which Dell attributed to its core storage offerings.
    Dell Technologies Form 10-K for fiscal 2026 (year ended 30 January 2026) - Item 7 MD&A and segment note: ISG and CSG revenue, operating income and drivers. — FY2026 · publ. March 2026 · source ↗
  12. ReportedThe recent quarters are better: storage sold $4,797 million in the fourth quarter of fiscal 2026, $4,334 million in the first quarter of fiscal 2027 and $4,850 million in the second, up 26%.
    Dell Technologies fourth-quarter and full-year fiscal 2026 results release, Form 8-K exhibit 99.1 - AI orders, shipments and backlog for the year, capital returns and fiscal 2027 guidance. — FY2026 · publ. 26 February 2026 · source ↗
  13. ReportedThe recent quarters are better: storage sold $4,797 million in the fourth quarter of fiscal 2026, $4,334 million in the first quarter of fiscal 2027 and $4,850 million in the second, up 26%.
    Dell Technologies first-quarter fiscal 2027 results release, Form 8-K exhibit 99.1. — Q1 FY2027 · publ. 28 May 2026 · source ↗
  14. ReportedThe recent quarters are better: storage sold $4,797 million in the fourth quarter of fiscal 2026, $4,334 million in the first quarter of fiscal 2027 and $4,850 million in the second, up 26%.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - ISG and CSG segment revenue and operating income. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  15. ReportedThe goodwill Dell still carries from EMC, $19,547 million across the company, is an accounting reminder of what was paid for this business.
    Dell Technologies Form 10-K for fiscal 2026 (year ended 30 January 2026) - financial statements and notes: balance sheet, debt, cash flow, capital returns and deferred revenue. — FY2026 · publ. March 2026 · source ↗
Sources
Generated September 26, 2026