Dell (DELL) Q3 Earnings call transcript Nov 26, 2025

Dell Technologies Inc. recently held its fiscal year 2025 third quarter financial results conference call, providing insights into the company's robust performance and future growth prospects. The call, led by executives Jeff Clarke, Yvonne McGill, and Tyler Johnson, emphasized the company's focus on balanced profitability and strong revenue growth, driven by its successful AI server business and expanding customer base.

Strong Performance and Growth

The earnings report highlighted Dell's impressive financial performance, with a 10% year-over-year revenue growth, reaching $24.4 billion. This growth was attributed to the strong ISG revenue growth, driven by the company's AI server business, which saw a substantial expansion in its 5-quarter pipeline. The company reported a 34% year-over-year increase in ISG revenue, driven by the server and networking sector, which grew by 58%. The storage segment also showed a 4% year-over-year growth, indicating a healthy demand environment.

Innovation and Differentiation

Dell Technologies' strategic focus on innovation and differentiation was evident in its AI server portfolio. The company's recent product launches, including the 21-inch OR V3 integrated IRAC 7000 and the XE9712 with direct liquid cooling, showcased its commitment to pushing the boundaries of AI innovation. These new solutions, along with the M7725 and IR 5000, demonstrate Dell's leadership in the AI server market and underscore its ability to meet the evolving demands of enterprise customers.

AI Opportunities and Challenges

The call underscored the enormous opportunities in the AI market, with Dell seeing strong demand across both traditional and AI servers. The company's unique position in the market, with its end-to-end solutions portfolio, large go-to-market engine, and unmatched global services footprint, positions it well to capitalize on this trend. However, the executives acknowledged the challenges posed by the dynamic nature of the AI market, emphasizing the importance of navigating the underlying silicon roadmap changes and maintaining a strong innovation engine.

Financial Health and Future Outlook

Dell Technologies' financial health and future outlook were also discussed, with the company expecting strong revenue growth in Q4, driven by the continued strength in its server business and enterprise demand for AI solutions. The company's focus on driving operational efficiencies and unlocking productivity gains through AI was highlighted, with the expectation of improving operating income rates and maintaining profitability.

In conclusion, Dell Technologies' earnings call underscored its strong financial performance and strategic focus on innovation and differentiation in the AI market. With a robust pipeline of new products and a solid track record of growth, profitability, and cash flow, the company is well positioned to capitalize on the opportunities in the AI market and continue its leadership in the technology sector.