AI-Powered Growth: Dell Technologies Delivers Record-Breaking Q1 Results
Dell Technologies Inc. has kicked off the new fiscal year with a resounding success, announcing its Q1 2026 financial results on May 29, 2025. The tech giant's robust performance has been driven by unprecedented demand for AI-optimized servers, cementing its position as a leader in this emerging market.
According to Jeff Clarke, Executive Vice President of Product and Global Operations at Dell Technologies, the company's revenue reached $23.4 billion, marking a 5% year-over-year increase. This growth was fueled across all core markets, with Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) experiencing an impressive 8% rise.
The company's ability to execute on its AI strategy has been particularly noteworthy, as Clarke pointed out during the conference call. 'We experienced exceptionally strong demand for AI-optimized servers, building on the momentum discussed in February and further demonstrating that our differentiation is winning in the marketplace,' he said.
Dell Technologies' AI business saw significant traction this quarter, with $12.1 billion in orders eclipsing the entirety of shipments in all of FY 2025. The company shipped $1.8 billion worth of AI-optimized servers, leaving a substantial backlog of $14.4 billion. This demonstrates that customers are increasingly seeking out Dell's bespoke custom solutions and agile deployment capabilities.
The company's ecosystem around AI is also unmatched, with key partnerships with industry leaders such as NVIDIA, AMD, Hugging Face, and Google. Its ability to offer flexible financing solutions enables customers to scale their AI infrastructure with confidence and efficiency.
In traditional servers, revenue increased double digits, representing six consecutive quarters of year-over-year demand growth. This trend suggests that a significant portion of the installed base remains on older server generations, presenting a substantial refresh opportunity for Dell's latest 16th and 17th generation servers.
'Dell offering resonates with customers,' Clarke emphasized during the conference call. 'We are innovating at breakneck speed, designing bespoke custom solutions for customers while being agile to respond quickly to evolving next-generation architectures.'
Looking ahead, Dell Technologies remains committed to expanding its leadership in AI by investing in innovation, deepening customer partnerships, and delivering infrastructure and software solutions that will power the next wave of AI transformation.
The company's record-breaking Q1 results have sent a clear message that it is well-positioned to capitalize on the growing demand for AI-optimized servers. As the tech landscape continues to evolve at an unprecedented pace, Dell Technologies' ability to innovate and execute on its vision is likely to remain a key differentiator in this exciting and rapidly changing market.
