Dell Technologies announced a 12% year-over-year increase in its Infrastructure Solutions Group (ISG) revenues for Q1 fiscal 2026, reaching $10.31 billion. This growth is driven by strong demand for servers, particularly in the AI sector, contributing $6.32 billion to revenues with a 16% year-over-year increase. The company’s cloud solutions, particularly through its APEX platform, are essential in this expansion, as seen in its partnership with the Singapore Institute of Technical Education for a hybrid cloud VDI Centre.
Dell faces significant competition in the cloud market from Microsoft and Alphabet. Microsoft’s cloud revenues surged to $42.4 billion, growing 21% year-over-year, while Alphabet reported a 28.1% increase in Google Cloud revenues, reaching $12.26 billion in Q1 2025. Both companies attribute growth to the demand for AI infrastructure and services.
Year-to-date, Dell’s shares have increased by 4.9%, outperforming the Zacks Computer & Technology sector’s 3.7% gain. Analysts estimate a second-quarter fiscal 2026 earnings per share of $2.26, reflecting a 19.58% year-over-year increase.
