TLDR:
- Dell exceeds Q3 expectations, posts record revenue of $27B.
- Strong growth in infrastructure, AI solutions push Dell’s performance.
- Dell raises FY26 revenue guidance to $111.7B, up 17% YoY.
- Q3 profitability up 39%, driven by AI demand and strong sales.
- Dell’s Q4 forecast predicts 32% YoY revenue growth to $31.5B.
Dell Technologies (DELL) stock closed at $125.92, down by 1.02% during regular trading hours.
Dell Technologies Inc., DELL
Dell Technologies exceeded expectations in its fiscal 2026 third-quarter financial results, reporting record revenue of $27 billion, a significant 11% year-over-year increase. The company also saw impressive profitability with a 39% year-over-year increase in diluted earnings per share (EPS), reaching $2.28. This growth was bolstered by a surge in demand for AI solutions, which contributed heavily to the company’s performance. Dell has raised its full-year revenue guidance to $111.7 billion, up 17% from the previous year, signaling strong momentum in its business.
Record Performance in Infrastructure Solutions Group (ISG)
Dell’s Infrastructure Solutions Group (ISG) reported record revenue of $14.1 billion for the third quarter, marking a 24% increase year over year. Servers and Networking revenue stood out with a 37% rise, reaching $10.1 billion, driven by higher demand for high-performance computing solutions. Operating income in ISG grew by 16%, reaching $1.7 billion, further reflecting the company’s robust performance in this segment. While storage revenue slightly declined by 1%, the overall growth in ISG demonstrates Dell’s strength in providing enterprise-level solutions.
David Kennedy, Dell’s new permanent CFO, emphasized the company’s focus on AI-driven growth. “In the third quarter, we delivered record Q3 revenue of $27 billion, record Q3 profitability, strong cash generation, and above-trend capital return,” he stated. The company’s ability to generate such strong results underscores its position in the technology market.
Solid Growth in Client Solutions Group (CSG)
Dell’s Client Solutions Group (CSG) also showed positive results, with a 3% increase in revenue to $12.5 billion. Commercial client revenue led this growth, up 5% year over year, totaling $10.6 billion. On the other hand, consumer revenue experienced a decline of 7%, reaching $1.9 billion, largely due to lower demand for consumer devices. Operating income remained flat, with a slight decrease in consumer sales offset by strong commercial sales.
The company continued its shareholder return program, repurchasing over 39 million shares and distributing $1.6 billion in dividends during the quarter. Year to date, Dell has returned $5.3 billion to its shareholders, highlighting its strong financial position and commitment to returning value. Dell’s fiscal outlook remains optimistic as it prepares for an even stronger fourth quarter.
Strong Forecast for Full-Year FY26 and Q4
For the full fiscal year 2026, Dell expects to generate between $111.2 billion and $112.2 billion in revenue, a 17% increase compared to the previous year. The company also projects AI server shipments to reach $25 billion, reflecting an impressive 150% year-over-year growth. GAAP diluted EPS for FY26 is expected to be $8.38, up 31%, while non-GAAP diluted EPS is expected to hit $9.92, marking a 22% increase.
In the fourth quarter, Dell forecasts revenue between $31.0 billion and $32.0 billion, with a midpoint of $31.5 billion, up 32% from the prior year. GAAP diluted EPS for Q4 is expected to reach $3.05, up 42%, and non-GAAP diluted EPS is projected to be $3.50, a 31% increase.
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