Dell Technologies 2026 Q3 Earnings Strong Performance as Net Income Grows 32.3%

Dell Technologies (DELL) reported fiscal 2026 Q3 earnings on Nov 25, 2025, with revenue rising 10.8% to $27 billion and net income growing 32.3% year-over-year to $1.55 billion. The company raised full-year revenue guidance to $111.7 billion, reflecting strong demand for AI servers and infrastructure solutions.

Revenue

Dell’s Infrastructure Solutions Group (ISG) led growth with $14.11 billion in revenue, driven by a 37% surge in servers and networking. The Client Solutions Group (CSG) contributed $12.48 billion, with commercial sales rising despite a decline in consumer revenue. Corporate and other segments added $420 million, while total consolidated net revenue reached $27 billion.

Earnings/Net Income

Despite a 67.6% decline in EPS to $0.54, net income surged 32.3% to $1.55 billion, underscoring improved profitability in AI and storage. The earnings shortfall was attributed to strategic investments in high-margin AI infrastructure.

Post-Earnings Price Action Review

The stock edged up 2.30% during the latest trading day and 2.63% for the week but fell 20.63% month-to-date. A post-earnings buy-and-hold strategy underperformed the market, with a CAGR of 2.94% versus the benchmark, max drawdown of 0.00%, and Sharpe ratio of 0.11, indicating low risk but modest returns.

CEO Commentary

Jeffrey Clarke, COO & Vice Chairman, highlighted record AI server orders of $12.3 billion and a $18.4 billion backlog, emphasizing Dell’s ability to deploy large-scale AI clusters rapidly. He noted strategic priorities in AI infrastructure, PC refresh cycles, and supply chain optimization, expressing confidence in navigating market challenges.

Guidance

Dell expects Q4 revenue of $31–$32 billion, with ISG and CSG combined growing 34% at the midpoint. Full-year revenue is projected at $111.7 billion, with non-GAAP EPS of $9.92. Operating income is forecast to rise 21% sequentially, driven by AI shipment acceleration.

Additional News

Dell named David Kennedy as permanent CFO, reflecting leadership stability. The company raised its FY26 AI server shipment target to $25 billion, up 150% year-over-year, and returned $1.6 billion to shareholders via buybacks and dividends in Q3. Recent partnerships with the U.S. Department of Energy and Abu Dhabi’s G42 underscore its AI expansion strategy.