Dell's inventory doubled in six months, $10.4bn → $21.3bn — funded by supplier credit (payables +$16.2bn) — and quarterly buybacks of $3.8bn were 1.7× operating cash flow
Fiscal Q2 2027 (May–July) 10-Q: revenue $47.0bn (+58%), AI-server revenue $16.4bn (2×), net income $4.1bn. Inventory rose from $10.4bn at the end of January to $21.3bn at the end of July; the company cites advance purchases of components for AI servers and component-cost inflation. First-half accounts payable +$16.2bn, quarterly operating cash flow $2.2bn, RPO $132bn, stockholders' equity −$1.4bn
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Dell Technologies Form 10-Q for fiscal Q2 2027 (as of July 31, 2026): statement of operations, balance sheet, cash-flow statement (changes in inventory and payables), ISG revenue by product (AI servers, traditional servers, storage), remaining-performance-obligations note, MD&A on AI-server demand, inventory and purchase obligations, share-repurchase note
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Dell Technologies (DELL) reported revenue of $46,971m for its fiscal second quarter (May 2–July 31, 2026), up 58% from a year earlier, and net income of $4,133m. The two lines that moved most on the balance sheet in the 10-Q filed on September 8 are inventory and accounts payable: inventory doubled in six months, and supplier credit paid for it.
What happened
Dell Technologies (DELL) sells servers, storage and PCs and trades as an AI-server supplier.
Its quarterly report (10-Q) for fiscal Q2 2027 (May 2–July 31, 2026) shows revenue of $46,971m, up 58% from $29,776m a year earlier. Of Infrastructure Solutions Group (ISG) revenue of $31,782m, AI-optimized servers contributed $16,401m, double the $8,208m of a year earlier. Operating income was $5,380m and net income $4,133m ($1,164m a year earlier).
Inventory on the balance sheet went from $10,437m at January 30 to $21,290m at July 31 — 2.04 times in six months. On the first-half cash-flow statement the increase in inventory is a −$10,940m outflow; on the same statement, accounts payable rose +$16,203m. More money came in as supplier credit than went out to buy the inventory.
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What the numbers mean — for subscribers
We find the numbers that are in the filing but not in the news, and analyze what they mean, how big they are and what to watch next quarter — with the arithmetic and quarterly metrics. Cancel any time.
The 10-Q says component purchases were increased to meet AI-server demand, raising inventory and purchase obligations, and that component-cost inflation is expected to persist through fiscal 2027. With orders behind it, that is preparation; the company also notes that frequent component transitions make supply management harder. This article reports the relationship between inventory, payables and cash flow; the criteria for judging it are in the subscriber section.
What paid for the buybacks?
Q2 repurchases of $3.8bn (first half $5.4bn, about 20m shares) exceeded Q2 operating cash flow of $2,226m. Cash was $11,570m at July 31 and long-term debt rose from $23.6bn at the end of January to $26.0bn.
How large is AI-server revenue?
$16,401m in Q2, double the $8,208m of a year earlier and 52% of ISG revenue of $31,782m. The company says backlog rose significantly as it exited the quarter and that non-linear shipment timing drives revenue variability.
Where can I verify these numbers?
On SEC EDGAR: Dell's fiscal Q2 2027 Form 10-Q (accession 0001571996-26-000046), the balance sheet (inventory), cash-flow statement (changes in inventory and payables, repurchases), the ISG revenue table, the remaining-performance-obligations note and MD&A.
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We read the filing on SEC EDGAR in full — statements, notes, MD&A. Press releases and news are not used as sources.
Every figure is reconciled to its location in the filing and to XBRL data. One mismatch means no publication.
An editor reviews before publication; any later change is recorded in the revision history.
Dell Technologies Form 10-Q for fiscal Q2 2027 (as of July 31, 2026): statement of operations, balance sheet, cash-flow statement (changes in inventory and payables), ISG revenue by product (AI servers, traditional servers, storage), remaining-performance-obligations note, MD&A on AI-server demand, inventory and purchase obligations, share-repurchase note · SEC EDGAR · This article is not investment advice. Disclaimer
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aiSwingX™ analyzes US filings and reports them as news investors can read.
