Dell and HP See Traction in the AI Refresh Cycle

Dell Technologies (NYSE:DELL) and HP Inc. (NYSE:HPQ) reported higher quarterly revenue, with performance tied to demand for AI infrastructure and storage.

For Dell, fiscal Q1 2027 revenue of $43.8 billion, up 88%, with EPS of $4.86, up 214%. The quarter was led by demand across AI servers and traditional compute. Technology planning centered on AI infrastructure, with Dell emphasizing integrated systems, enterprise data platforms, and storage architectures built for modern AI workloads.

Meanwhile, HP also reported revenue growth, with Q2 2026 sales up 9% year over year and Personal Systems up 13%. The company used the quarter to frame edge AI as a key part of its future of work strategy, noting that customers are weighing where AI workloads should run as cloud cost and security needs become more important.

That focus carried through its posture on intelligent devices and AI-enabled workflows.

Why It Matters: The companies showed AI becoming part of infrastructure planning, endpoint selection, data architecture, and operating model design. While Dell’s perspective indicates enterprise demand for controlled AI environments, HP’s comments show AI adoption reshaping endpoint strategy through managed edge computing.

• Dell’s AI Infrastructure Momentum: Dell booked $24.4 billion in AI orders, recognized $16.1 billion in AI server revenue, and ended the quarter with a $51.3 billion AI backlog. Jeff Clarke, vice chairman and COO, said customers are “not just buying components” and are looking for integrated solutions they can put into production quickly on infrastructure they control. The remarks show rising demand for AI environments that support data control and production workloads.

• Dell’s Integrated Expansion: Dell described a more connected AI infrastructure portfolio, covering the systems and services needed to move workloads into production. Clarke said Dell is “expanding the AI Factory from the data center to the desk side across compute, storage, networking, software, and services.” In doing so, Dell tied its AI story to integrated infrastructure rather than single product sales.

• HP’s Edge AI Opportunity: Interim CEO Bruce Broussard said higher cloud costs tied to agentic AI are contributing to demand for workloads closer to users and workflows. He also cited privacy and security needs as part of that customer decision-making. HP said AI PCs rose from more than 35% to 44% of shipment mix in the quarter and also expanded its portfolio for local AI development and managed endpoint experiences.

• Modernization Under Supply Pressure: Dell said customers are refreshing older server and PC installed bases while seeking more compute density and better power efficiency. HP discussed supply and product actions meant to manage rising input costs while protecting profitability. Taken together, the comments show modernization being shaped by performance needs and operating leverage.

• AI’s Role in Internal Operations: Dell said it is using AI inside its R&D organizations to deliver larger storage product releases in shorter periods. Meanwhile, HP said it is applying AI to its software development and operating workflows to improve productivity. HP also pointed to AI-driven workforce management tools, including its Workforce Experience Platform, which manages more than 5.2 million devices in 180 countries.

Go Deeper -> Dell’s Earnings Report – MarketBeat

HP’s Earnings Report – Marketbeat

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