◆ What the Market Isn't Pricing In

Dell Technologies (DELL) — the variant view

The market pays 31 times Dell's trailing earnings, but in the latest quarter only 54 cents of each dollar of profit arrived as operating cash.

📈 DELL valuation, revenue & earnings — P/E, P/S, revenue, EPS →

Dell's shares have been re-rated as an AI company, and the market is valuing its earnings. It is paying less attention to the fact that, in the latest quarter, those earnings did not turn into cash. The stock closed at $562.89 on 25 September 2026, a market value of $357.89 billion1, up 326% in a year2. That is about 31 times trailing net income of $11,378 million3 and 20 times forward earnings4.

Q2 FY2027 net income against cash from operations ($M)4,133Net income2,225Cash from operations1,239Capital expenditureDell Q2 FY2027 results release
Profit ran ahead of cash.

In the second quarter of fiscal 2027 net income was $4,133 million and cash from operations $2,225 million5, about 54% of earnings6. Capital expenditure took another $1,239 million, and buybacks and dividends about $4.2 billion7. The gap was working capital: inventories rose from $10,437 million to $21,290 million in six months, while payables rose from $33,630 million to $49,723 million8.

This is normal for a company growing 58% a quarter9, and Dell's history supports patience: in fiscal 2026 operating cash flow of $11,185 million exceeded net income of $5,936 million10. But it means the current earnings rest on stock that has not been sold yet and on supplier credit that must be repaid.

The market also appears to be looking through the margin. The first half included about $0.7 billion of net gains on investments11, and the first-quarter GAAP earnings of $5.24 a share exceeded the company's non-GAAP $4.86 because of them12.

The re-rating has been sudden. Dell was worth $28.80 billion at the end of calendar 2022, $54.43 billion at the end of 2023, $82.18 billion at the end of 2024 and $86.61 billion at the end of 202513, before more than quadrupling in 2026 to $357.89 billion14. On year-end values its earnings multiple rose from about 12 to about 15 over those years15; the trailing multiple now is about 3116.

The reconciling number is cash from operations. If the second half of fiscal 2027 produces operating cash flow close to net income, the AI earnings are as good as the market thinks; if cash keeps running at half of earnings while inventory climbs, the valuation is resting on stock in a warehouse.

References
  1. ReportedThe stock closed at $562.89 on 25 September 2026, a market value of $357.89 billion, up 326% in a year.
    Dell Technologies (DELL) market data - $562.89 a share at the close on 25 September 2026, market cap $357.89B, trailing revenue $151.20B and net income $11.38B, EPS 17.14, 52-week range 110.22-595.51, analyst target $577.36. — September 2026 · publ. 25 September 2026 · source ↗
  2. ReportedThe stock closed at $562.89 on 25 September 2026, a market value of $357.89 billion, up 326% in a year.
    Dell Technologies (DELL) statistics - trailing P/E 32.84, forward P/E 20.00, P/S 2.37, 52-week price change +326.14%, insiders own 47.08%, return on equity n/a. — September 2026 · publ. 25 September 2026 · source ↗
  3. Moat Explorer calcThat is about 31 times trailing net income of $11,378 million and 20 times forward earnings.
    Moat Explorer calculation from Dell Technologies' reported figures ($ 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) - balance sheet, cash flow, capital returns, guidance and valuation. — 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.
  4. ReportedThat is about 31 times trailing net income of $11,378 million and 20 times forward earnings.
    Dell Technologies (DELL) statistics - trailing P/E 32.84, forward P/E 20.00, P/S 2.37, 52-week price change +326.14%, insiders own 47.08%, return on equity n/a. — September 2026 · publ. 25 September 2026 · source ↗
  5. ReportedIn the second quarter of fiscal 2027 net income was $4,133 million and cash from operations $2,225 million, about 54% of earnings.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - balance sheet, cash flow and capital returns. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  6. Moat Explorer calcIn the second quarter of fiscal 2027 net income was $4,133 million and cash from operations $2,225 million, about 54% of earnings.
    Moat Explorer calculation from Dell Technologies' reported figures ($ 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) - balance sheet, cash flow, capital returns, guidance and valuation. — 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.
  7. ReportedCapital expenditure took another $1,239 million, and buybacks and dividends about $4.2 billion.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - balance sheet, cash flow and capital returns. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  8. ReportedThe gap was working capital: inventories rose from $10,437 million to $21,290 million in six months, while payables rose from $33,630 million to $49,723 million.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - balance sheet, cash flow and capital returns. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  9. ReportedThis is normal for a company growing 58% a quarter, and Dell's history supports patience: in fiscal 2026 operating cash flow of $11,185 million exceeded net income of $5,936 million.
    Dell Technologies second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - segment results, AI orders and backlog, and full-year guidance - consolidated income statement. — Q2 FY2027 · publ. 1 September 2026 · source ↗
  10. ReportedThis is normal for a company growing 58% a quarter, and Dell's history supports patience: in fiscal 2026 operating cash flow of $11,185 million exceeded net income of $5,936 million.
    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 ↗
  11. ReportedThe first half included about $0.7 billion of net gains on investments, and the first-quarter GAAP earnings of $5.24 a share exceeded the company's non-GAAP $4.86 because of them.
    Dell Technologies Form 10-Q for the quarter ended 31 July 2026 - remaining performance obligations, debt, deferred revenue, purchase obligations, share counts and risk disclosures. — Q2 FY2027 · publ. 8 September 2026 · source ↗
  12. ReportedThe first half included about $0.7 billion of net gains on investments, and the first-quarter GAAP earnings of $5.24 a share exceeded the company's non-GAAP $4.86 because of them.
    Dell Technologies first-quarter fiscal 2027 results release, Form 8-K exhibit 99.1. — Q1 FY2027 · publ. 28 May 2026 · source ↗
  13. ReportedDell was worth $28.80 billion at the end of calendar 2022, $54.43 billion at the end of 2023, $82.18 billion at the end of 2024 and $86.61 billion at the end of 2025, before more than quadrupling in 2026 to $357.89 billion.
    Companies Market Cap, Dell Technologies market capitalisation by calendar year-end: $35.10B (2018), $37.89B (2019), $54.95B (2020), $42.90B (2021), $28.80B (2022), $54.43B (2023), $82.18B (2024), $86.61B (2025). — 2018-2026 · publ. September 2026 · source ↗
  14. ReportedDell was worth $28.80 billion at the end of calendar 2022, $54.43 billion at the end of 2023, $82.18 billion at the end of 2024 and $86.61 billion at the end of 2025, before more than quadrupling in 2026 to $357.89 billion.
    Dell Technologies market capitalisation history - $357.89 billion on 25 September 2026, up from $32.64 billion at the relisting; market values of HP Inc. ($28.98B) and Super Micro Computer ($27.24B). — 2018-2026 · publ. September 2026 · source ↗
  15. Moat Explorer calcOn year-end values its earnings multiple rose from about 12 to about 15 over those years; the trailing multiple now is about 31.
    Moat Explorer calculation from Dell Technologies' reported figures ($ 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) - balance sheet, cash flow, capital returns, guidance and valuation. — 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.
  16. Moat Explorer calcOn year-end values its earnings multiple rose from about 12 to about 15 over those years; the trailing multiple now is about 31.
    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) - balance sheet, cash flow, capital returns, guidance and valuation. — 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.
Sources
Generated September 26, 2026