Dell Technologies 2026 Q3 Earnings Beats Expectations with 32.3% Net Income Growth

Dell Technologies (DELL) reported fiscal 2026 Q3 earnings on Nov 25, 2025, with revenue rising 10.8% year-over-year to $27 billion, surpassing adjusted EPS estimates. The company raised its full-year revenue forecast to $111.2–$112.2 billion and maintained robust guidance for Q4, signaling confidence in sustained demand for AI infrastructure and enterprise solutions.

Revenue

Dell’s total revenue surged 10.8% to $27 billion in Q3 2026, driven by strong performance across segments. The Infrastructure Solutions Group (ISG) led with $14.11 billion in revenue, fueled by a 37% increase in servers and networking. The Client Solutions Group (CSG) contributed $12.48 billion, with commercial client sales rising despite a decline in consumer revenue. Storage revenue dipped 1% to $3.98 billion, while corporate and other segments totaled $420 million.

Earnings/Net Income

Dell’s EPS climbed 37.6% to $2.30, with net income reaching $1.55 billion—a 32.3% year-over-year increase. The company’s profitability was bolstered by AI server demand and efficient cost management, reflecting strategic execution in high-margin infrastructure.

Post-Earnings Price Action Review

The strategy of buying Dell shares post-earnings and holding for 30 days underperformed the market, with a 2.94% CAGR versus a 59.12% benchmark gap. Despite a 0.00% maximum drawdown and a Sharpe ratio of 0.11 indicating low risk, returns remained modest.

CEO Commentary

Jeff Clarke, COO & Vice Chairman, highlighted record AI server orders of $12.3 billion and a $30 billion year-to-date pipeline, underscoring Dell’s leadership in AI infrastructure. He emphasized strengths in custom high-performance systems and global deployment capabilities, while reaffirming confidence in the PC refresh cycle and traditional infrastructure demand.

Guidance

Dell provided Q4 revenue guidance of $31–$32 billion and non-GAAP EPS of $3.50, with full-year revenue projected at $111.2–$112.2 billion. The company raised its AI server shipment forecast to $25 billion for FY2026, reflecting accelerated demand for enterprise AI adoption.

Additional News

Dell named David Kennedy permanent CFO, citing his role in driving record Q3 results and capital returns. The company returned $1.6 billion to shareholders via buybacks and dividends in Q3, bringing year-to-date returns to $5.3 billion. Additionally, Dell announced a $0.525 per share quarterly dividend, maintaining a 30.88% payout ratio.

Dell’s strategic focus on AI infrastructure and enterprise solutions positions it to capitalize on long-term growth trends. The company’s robust cash flow generation and shareholder returns further reinforce its value proposition amid evolving market dynamics.