DELL · Forward model · Storage · Bear case
What has to happen in Storage
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Storage
Basis quarter$4.33B
Final quarter$4.37B
Implied CAGR0%
Final revenue mix12%
The steady, high-margin ballast inside ISG. $4,334M in the basis quarter, up 8% year over year - the slowest line in the company and, on any reasonable reading of the segment blend, the richest. Nine quarters of disclosed history sit in a $3.8B-$4.8B band with a clear fiscal-Q4 peak. Management called out record demand growth in Dell IP storage, PowerStore and PowerScale, attached to AI data pipelines.
Last four quarters
2026 Q2
$3.86B
Reported
2026 Q3
$3.98B
Reported
2026 Q4
$4.80B
Reported
2027 Q1
$4.33B
Reported
Dell IP storage: PowerStore, PowerScale, PowerMax, ObjectScaleThird-party and attached storage
Sequential growth
+2.0%/qtr
decaying toward +1.0%
Nine disclosed quarters sit in a $3.8-4.8B band; mid-single-digit annual growth with a fiscal-Q4 peak is the shape.
Storage
Latest: $4.37B (2032Q1E)
| Period | Value |
|---|---|
| 2025Q1 | $3.76B |
| 2025Q2 | $3.97B |
| 2025Q3 | $4.00B |
| 2025Q4 | $4.72B |
| 2026Q1 | $4.00B |
| 2026Q2 | $3.86B |
| 2026Q3 | $3.98B |
| 2026Q4 | $4.80B |
| 2027Q1 | $4.33B |
| 2027Q2E | $4.39B |
| 2027Q3E | $4.43B |
| 2027Q4E | $4.45B |
| 2028Q1E | $4.47B |
| 2028Q2E | $4.48B |
| 2028Q3E | $4.48B |
| 2028Q4E | $4.48B |
| 2029Q1E | $4.48B |
| 2029Q2E | $4.48B |
| 2029Q3E | $4.47B |
| 2029Q4E | $4.46B |
| 2030Q1E | $4.45B |
| 2030Q2E | $4.44B |
| 2030Q3E | $4.43B |
| 2030Q4E | $4.42B |
| 2031Q1E | $4.41B |
| 2031Q2E | $4.40B |
| 2031Q3E | $4.39B |
| 2031Q4E | $4.38B |
| 2032Q1E | $4.37B |
Assumptions & reasoning
- This is the one ISG line whose history needs nothing derived: nine consecutive quarters, every one of them printed in a release reconciliation table.
- Storage has grown between 1% and 8% year over year for two years. It is the reason this model is not a pure AI bet, and it is also far too small to offset an AI-server disappointment: $4.3B a quarter against $16.1B.
- Its margin contribution is invisible in the filings - it is pooled into the single ISG operating income figure. The 13.0% terminal margin here sits above the ISG blend on the judgement that storage is the richest line in the segment, and that judgement is the assumption, not a disclosure.
- No seasonality factors are applied even though the fiscal-Q4 peak is visible in the history, because a four-factor seasonal cut fitted on nine quarters would add precision the disclosure does not support.