Dell Technologies 2026 Q3 Earnings Strong Revenue Growth and 32.3% Net Income Surge

Dell Technologies (DELL) reported fiscal 2026 Q3 earnings on Nov 25, 2025, outperforming adjusted EPS estimates while slightly underperforming revenue forecasts. The company raised its full-year revenue guidance to $111.7 billion, reflecting confidence in AI-driven demand and operational execution.

Revenue

Dell’s total revenue rose 10.8% year-over-year to $27 billion, driven by robust performance in its Infrastructure Solutions Group (ISG). ISG revenue surged 24% to $14.11 billion, 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 7% decline in consumer revenue. Corporate and other revenue stood at $420 million, while storage revenue dipped 1% to $3.98 billion.

Earnings/Net Income

Dell’s EPS grew 37.6% to $2.30, with non-GAAP EPS at $2.59, exceeding analyst estimates. Net income surged 32.3% to $1.55 billion, underscoring improved profitability. The EPS growth outperformed net income, indicating enhanced operational efficiency.

Post-Earnings Price Action Review

A strategy of buying DELL shares post-revenue raise events and holding for 30 days delivered a 192.79% return over three years, outperforming the benchmark by 126.80%. The strategy’s CAGR of 43.47% highlighted consistent growth, though 52.09% volatility and a Sharpe ratio of 0.83 indicated moderate risk.

CEO Commentary

Jeffrey Clarke highlighted record Q3 revenue ($27 billion) and AI momentum, with $30 billion in year-to-date orders. Strategic priorities include navigating commodity costs, accelerating AI infrastructure, and capital returns.

Guidance

Dell projected Q4 revenue of $31–32 billion and non-GAAP EPS of $3.50. Full-year FY2026 revenue is targeted at $111.7 billion, with non-GAAP EPS of $9.92.

Additional News

1. C-Level Change: David Kennedy was appointed permanent CFO, succeeding interim leadership.

2. AI Guidance Boost: Dell raised FY2026 AI server shipment guidance to $25 billion, up 150% year-over-year.

3. Shareholder Returns: The company returned $1.6 billion to shareholders in Q3 through buybacks and dividends, totaling $5.3 billion year-to-date.

Polished Transitions

The report underscores Dell’s strategic pivot toward AI infrastructure, leveraging its supply chain and technical capabilities. While near-term challenges like inflation persist, the company’s capital return initiatives and AI growth trajectory position it for sustained performance.