Dell Technologies 2026 Q3 Earnings Net Income Surges 32.3%

Dell Technologies (DELL) reported fiscal 2026 Q3 earnings on Dec 9, 2025, with revenue rising 10.8% year-over-year to $27 billion and net income growing 32.3% to $1.55 billion. The results exceeded expectations, driven by strong performance in AI infrastructure and enterprise solutions. Additional news includes a potential acquisition of Israeli AI data startup Dataloop and a robust outlook for the data center physical infrastructure market.

Revenue

Dell Technologies’ total revenue reached $27 billion in Q3 2026, reflecting a 10.8% increase compared to $24.37 billion in the prior year. The Infrastructure Solutions Group led with $14.11 billion in revenue, while the Client Solutions Group contributed $12.48 billion. Corporate and other segments added $420 million, with no amortization or stock-based compensation expenses recorded.

Earnings/Net Income

Earnings per share (EPS) surged 38.3% to $2.31 in Q3 2026, compared to $1.67 in the same period last year. Net income rose to $1.55 billion, a 32.3% increase from $1.17 billion in Q3 2025. The EPS and net income growth of 38.3% and 32.3%, respectively, underscore robust profitability and operational efficiency.

Price Action

The stock price of Dell Technologies declined 0.59% during the latest trading day but gained 1.67% over the past week. Month-to-date, it has dropped 7.35%, reflecting mixed investor sentiment.

Post-Earnings Price Action Review

The strategy of buying DELL when earnings beat and holding for 30 days delivered strong results, significantly outperforming the market. The strategy achieved a 305.97% excess return and a 37.90% CAGR, compared to an 88.30% benchmark return. While the strategy had a high volatility of 47.89%, it had a maximum drawdown of 0.00%, indicating it effectively managed risk relative to the market.

CEO Commentary

Dell Technologies CEO Michael Dell emphasized the company’s strong performance, stating, “We’re seeing unprecedented demand for AI infrastructure, driven by our ability to deliver tailored, high-performance solutions to enterprise customers.” He highlighted strategic investments in hybrid cloud and AI, noting, “Our partnerships and product innovations position us to capitalize on the AI-driven enterprise transformation.” The CEO also reiterated confidence in Dell’s long-term growth, citing robust order pipelines and a diversified customer base.

Guidance

For FY 2026, Dell Technologies expects total revenue between $111.2 billion and $112.2 billion, reflecting a 17% year-over-year increase at the midpoint of $111.7 billion. The company anticipates continued growth in AI server orders and operational scalability, with a focus on expanding its neocloud, sovereign, and enterprise customer segments.

Additional News

Dell Technologies is in advanced talks to acquire Israeli AI data infrastructure startup Dataloop, a move aimed at enhancing its enterprise AI capabilities. Separately, the company announced a $15.6 billion year-to-date AI server shipment total, driven by record $12.3 billion in AI server orders for Q3 2026. Meanwhile, the data center physical infrastructure market expanded 18% year-over-year in Q3 2025, with Dell’s strategic investments aligning with growing demand for liquid-cooling and high-voltage distribution solutions.

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