Dell leans hard into AI infrastructure in Q2 FY26, shipping a record $8.2 billion of AI servers and lifting Infrastructure Solutions Group revenue 44% to $16.8 billion. Total revenue reached $29.8 billion (up 19%), driven by accelerated deliveries of NVIDIA GB200/GB300 NVL72 systems and expanding enterprise deployments. Management raised FY26 AI server shipment guidance to $20 billion, citing a five-quarter pipeline that grew double digits across enterprise and sovereign customers and an AI backlog of $11.7 billion exiting the quarter.
Servers & Networking revenue jumped 69% to $12.9 billion as Dell prioritized high-density, accelerator-rich racks and rapid factory-to-floor turn-ups. Storage slipped 3% to $3.9 billion on softer large-account demand and HCI customers rethinking private-cloud strategies, though Dell’s PowerStore logged a sixth straight growth quarter. Client Solutions Group rose 1% to $12.5 billion on commercial refresh momentum, with Windows 10 end-of-life expected to extend the cycle into 2026.
For Q3 FY26, Dell guided revenue to $26.5–$27.5 billion (midpoint up 11% YoY) and non-GAAP EPS to $2.45, and reiterated full-year revenue of $105–$109 billion (midpoint up 12%). Management expects AI margins to improve in 2H via value engineering, lower expediting costs, and higher enterprise attach of networking, storage, and services.
• AI infrastructure: $8.2B AI server shipments in Q2; $10.0B shipped in 1H; $11.7B AI backlog; five-quarter AI pipeline up double digits across enterprise and sovereign customers
• Platforms delivered: First to ship NVIDIA GB200 NVL72 (last year) and GB300 NVL72 (July, to CoreWeave); growing PCIe/air-cooled enterprise mix alongside DLC mega-clusters
• ISG mix & margins: AI is “gross-dollar accretive, rate dilutive” near-term; 2H margin uplift expected as storage seasonality and Dell-IP mix kick in
• Core metrics: Q2 revenue $29.8B (+19% YoY); ISG $16.8B (+44%); Servers & Networking $12.9B (+69%); Storage $3.9B (-3%); CSG $12.5B (+1%)
• Cash & returns: $2.5B cash from operations; $1.3B returned to shareholders (buybacks + dividends)
“In Q2, we achieved strong top-line results and profitability… We’ve now shipped $10 billion of AI solutions in the first half of FY26… and we’re raising our AI server shipment guidance for FY26 to $20 billion,” said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies.
🌐 Analysis: Dell’s AI factory execution—spanning GB200/GB300 NVL72 racks, enterprise-friendly PCIe/air options, and services attach—continues to pull forward ISG growth even as storage demand normalizes. Watch 2H mix: storage seasonality and a higher share of Dell-IP storage are the swing factors for ISG margins as Dell jousts with HPE, Lenovo, and Supermicro for Blackwell-era deployments.
Dell AI Infrastructure Tracker — Orders, Shipments & Backlog
| Quarter / Period | AI Server Orders | AI Server Shipments | AI Backlog (End of Period) | Notes |
|---|---|---|---|---|
| Q1 FY26 | — | $1.8B* | — | Derived from H1 shipments of $10.0B minus Q2 shipments of $8.2B. |
| Q2 FY26 | $5.6B | $8.2B | $11.7B | Record shipments; GB300 NVL72 delivered in July; enterprise mix up. |
| H1 FY26 (Cumulative) | $17.7B** | $10.0B | $11.7B (as of Q2 end) | Five-quarter pipeline grew double digits across enterprise & sovereign. |
*Estimated from management commentary (H1 shipments of $10.0B; Q2 shipments of $8.2B).
**Management cited $17.7B in AI orders (“sold AI infrastructure”) in the first half.
