Dell Technologies Inc., a prominent player in the global technology landscape, has unveiled its second quarter results for fiscal 2026, showcasing robust performance driven by its Infrastructure Solutions Group (ISG) and a favorable shift towards AI-optimized solutions. The company’s ongoing commitment to innovation and modernization has positioned it well in an evolving market.

1. Financial Highlights

Dell Technologies reported significant growth in its financial performance for Q2 2026, with net revenue reaching $29.77 billion, marking a 19% increase compared to $25.02 billion in Q2 2025. Operating income also saw an impressive rise to $1.77 billion, reflecting a 27% year-over-year increase. The company’s net income surged to $1.16 billion, up from $846 million in the previous year, illustrating strong profitability amid changing market dynamics.

Income Statement of Dell Technologies Inc

	Sep 2024	Sep 2025
Net Income	3.97B	4.91B
Net Income to Non-controlling Interest	-14M	-6M
Profit	3.95B	4.90B
Net Income Continuing	3.95B	4.90B
Income Tax Expense	46M	1.12B
Pretax Income	4.00B	6.03B
Non-operating Income	-1.23B	-878M
Operating Income	5.23B	6.91B
Revenue	91.83B	101.4B
Costs and Expenses	86.6B	94.53B
Cost of Revenue	71.25B	79.93B
Operating Expenses	15.34B	14.60B
Research & Development	2.95B	3.11B
Selling, General & Administrative	12.39B	11.49B

Key Performance Metrics

Net Revenue: $29.77 billion (up 19% YoY)

Operating Income: $1.77 billion (up 27% YoY)

Net Income: $1.16 billion (up 37% YoY)

2. Segment Analysis

Infrastructure Solutions Group (ISG)

The ISG segment continues to be the powerhouse of Dell’s growth, with net revenue skyrocketing by 44% in Q2 2026, supported by the surge in demand for AI-optimized servers and networking solutions. Operating income for ISG faced a slight decrease as a percentage of net revenue, primarily due to the declining gross margins associated with the transition to AI-focused offerings.

Client Solutions Group (CSG)

While ISG thrived, the CSG segment recorded a modest 1% increase in net revenue for Q2 2026. The growth was largely driven by commercial offerings, but consumer demand faced challenges. Operating income as a percentage of revenue in CSG fell due to rising operating expenses and competitive pricing pressures.

Geographic Performance

Dell’s revenue growth was notably robust in the Americas, largely attributed to the strong uptake of AI-optimized solutions. The European, Middle Eastern, and African (EMEA) regions, along with Asia-Pacific and Japan (APJ), also contributed positively to the overall performance.

3. Balance Sheet Overview

As of Q2 2026, Dell’s assets totaled $89.17 billion, up from $82.68 billion in Q2 2025. This increase reflects a solid foundation for future growth, although the company continues to navigate challenges related to its equity position, which remains negative at -$2.76 billion.

Balance Sheet of Dell Technologies Inc

	Sep 2024	Sep 2025
Total Assets	82.68B	89.17B
Total Current Assets	37.54B	45.51B
Cash and Equivalents	4.55B	8.14B
Net Inventories	5.95B	7.21B
Accounts Receivable	11.39B	15.02B
Notes and Loans Receivable	4.96B	5.95B
Other Current Assets	10.68B	9.18B
Total Non-current Assets	45.14B	43.66B
Intangible Assets	25.02B	24.08B
Long-term Investments	1.30B	1.59B
Non-current Accounts and Financing Receivable	6.12B	6.07B
Net PP&E	6.3B	6.45B
Other Non-current Assets	6.39B	5.45B
Total Liabilities and Equity	82.68B	89.17B
Total Liabilities	85.48B	91.94B
Total Current Liabilities	52.03B	54.86B
Accounts Payable and Accrued Liabilities	30.46B	33.94B
Current Debt	6.71B	7.15B
Current Deferred Revenue	14.85B	13.75B
Total Non-current Liabilities	33.45B	37.08B
Long-term Debt	17.81B	21.53B
Non-current Deferred Revenue	12.85B	12.42B
Other Non-current Liabilities	2.78B	3.12B
Total Equity and Non-controlling Interests	-2.79B	-2.76B
Total Equity	-2.89B	-2.76B
Non-controlling Interests	97M	0

Balance Sheet Highlights

Total Assets: $89.17 billion

Total Liabilities: $91.94 billion

Total Equity: -$2.76 billion

4. Cash Flow Dynamics

Dell Technologies reported a net change in cash of $438 million for Q2 2026, a significant turnaround from a cash decrease of $1.29 billion in the same period last year. The positive cash flow from operating activities reached $2.54 billion, indicating strong operational efficiency.

Cash Flow Statement of Dell Technologies Inc

	Sep 2024	Sep 2025
Net Change in Cash	-3.97B	3.62B
Effect of Exchange Rate Changes	-166M	22M
Net Cash from Operating Activities	6.06B	7.47B
Operating Profit	3.95B	4.90B
Adjustment to Operating Profit	2.11B	2.56B
Net Cash from Investing Activities	-2.50B	-1.94B
Business & Interest in Affiliates	126M	-533M
Investments	-192M	-39M
Productive Assets	2.70B	2.61B
Other Investing Activities	136M	100M
Net Cash from Financing Activities	-7.37B	-1.93B
Debt	-2.50B	3.99B
Dividends	1.17B	1.38B
Equity Issuance/Repurchase	-3.00B	-4.08B
Other Financing Activities	-685M	-462M

Cash Flow Summary

Net Change in Cash: $438 million (up from -$1.29 billion)

Net Cash from Operating Activities: $2.54 billion

Net Cash from Investing Activities: -$655 million

5. Strategic Outlook

Dell Technologies remains optimistic about future growth, particularly in its ISG segment with a continued emphasis on AI-optimized solutions. The company is actively evaluating strategic investments and potential acquisitions to enhance its portfolio and maintain its competitive edge. However, uncertainties in the macroeconomic environment, including currency fluctuations and trade barriers, pose ongoing challenges.

6. Conclusion

Dell Technologies Inc. is strategically positioned for sustained growth in the technology sector, with a clear focus on innovation in both its ISG and CSG segments. The company’s ability to adapt to market changes while driving operational efficiencies sets a positive tone for the upcoming quarters. As the demand for AI-optimized solutions continues to rise, Dell is poised to capitalize on emerging opportunities while navigating the complexities of a dynamic economic landscape.

Original filing: sec.gov