Dell Technologies 2026 Q3 Earnings Net Income Surges 32.3% Amid AI Momentum

Dell Technologies (DELL) reported fiscal 2026 Q3 results on Dec 9, 2025, with revenue rising 10.8% year-over-year to $27 billion and EPS jumping 38.3% to $2.31. The company’s Infrastructure Solutions Group led growth, while AI-driven demand underscored its strategic positioning.

Revenue

Infrastructure Solutions Group dominated with $14.11 billion in revenue, reflecting robust demand for hybrid cloud and AI solutions. The Client Solutions Group added $12.48 billion, driven by sustained hardware and software sales. Corporate and other segments contributed $420 million, while amortization and stock-based compensation expenses remained at $0. Together, these segments totaled $27 billion in consolidated net revenue, a 10.8% increase from $24.37 billion in the prior year.

Earnings/Net Income

Dell’s profitability expanded significantly, with net income surging 32.3% to $1.55 billion, outpacing the 38.3% EPS growth. The company’s ability to scale operations and optimize margins in high-growth areas like AI and storage reinforced its financial resilience.

Price Action

Shares of DELL declined 0.59% in the latest trading day but gained 1.67% weekly, though they fell 7.35% month-to-date.

Post-Earnings Price Action Review

A strategy of buying DELL when earnings beat and holding for 30 days outperformed the market, delivering a 305.97% excess return and 37.90% CAGR versus a 88.30% benchmark. Despite high volatility of 47.89%, the strategy avoided maximum drawdowns, highlighting effective risk management.

CEO Commentary

Michael Dell, CEO of Dell Technologies, emphasized the company’s momentum in AI infrastructure, stating, “Our record AI server orders and operational scaling have driven exceptional growth. We remain focused on delivering tailored solutions to meet evolving customer needs in hybrid cloud and edge computing.” He acknowledged supply chain challenges but expressed confidence in sustaining profitability through strategic investments.

Guidance

The CEO outlined expectations for FY 2026, projecting revenue between $111.2–$112.2 billion, with continued emphasis on AI and edge computing. “We anticipate maintaining CAPEX investments aligned with our growth trajectory,” Dell added, underscoring confidence in long-term market opportunities.

Additional News

In the three weeks following the earnings release, Dell Technologies announced record AI server orders of $12.3 billion in Q3, with YTD orders reaching $30 billion. The company also highlighted its capacity to engineer high-performance AI solutions, securing $5.6 billion in AI server shipments for the quarter. While no M&A activity or C-level changes were disclosed, Dell reiterated its commitment to expanding its AI infrastructure portfolio to meet neocloud, sovereign, and enterprise demand. Dividend or buyback updates were absent, with the company prioritizing reinvestment in strategic growth areas.