Dell Technologies Inc. stock research
FY2027 Q1
Dell Technologies (DELL) Gross Margin — Quarter Ended May 1, 2026
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. However, the gross margin weakened as cost of revenue grew faster than revenue.
Gross margin takeaway
Quarter ended May 1, 2026 · FY2027 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. However, the gross margin weakened as cost of revenue grew faster than revenue.
- The strongest observable driver is the rising proportion of cost of revenue relative to revenue. This ratio increased from the prior quarter and the year-ago quarter, directly compressing the gross margin.
- Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was also lower. Revenue was higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
17.8%
Gross profit
$7.8B
Revenue
$43.8B
Cost of revenue
$36.1B
Quarter-over-quarter change
-2.4 pts
Year-over-year change
-3.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Aug 1, 2025 | $29.8B | $5.4B | $24.3B | 18.3% |
| Oct 31, 2025 | $27.0B | $5.6B | $21.4B | 20.7% |
| Jan 30, 2026 | $33.4B | $6.7B | $26.6B | 20.2% |
| May 1, 2026 | $43.8B | $7.8B | $36.1B | 17.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 30, 2026
-2.4 pts
Year-over-year change
May 2, 2025
-3.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the rising proportion of cost of revenue relative to revenue. This ratio increased from the prior quarter and the year-ago quarter, directly compressing the gross margin.
Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was also lower. Revenue was higher in both comparisons.
Monitor the trend of cost of revenue as a percentage of revenue in upcoming quarters.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Dell Technologies Inc. (DELL) | 17.8% |