Dell Technologies 2026 Q3 Earnings Strong Performance as Net Income Surges 32%

Dell Technologies (DELL) reported fiscal 2026 Q3 earnings on Nov 25, 2025, exceeding adjusted EPS expectations while slightly missing revenue forecasts. The company raised full-year revenue guidance to $111.2–$112.2 billion and highlighted record AI server orders.

Revenue

Dell’s total revenue rose 10.8% to $27 billion, driven by robust growth in infrastructure solutions. The Infrastructure Solutions Group (ISG) led with $14.11 billion in revenue, fueled by a 37% surge in servers and networking. The Client Solutions Group (CSG) contributed $12.48 billion, offsetting a 7% decline in consumer sales. Corporate and other revenue totaled $420 million, with no amortization or stock-based compensation expenses reported.

Earnings/Net Income

Earnings per share (EPS) increased 37.6% to $2.30, outpacing the prior-year $1.67. Net income surged 32.3% to $1.55 billion, reflecting improved profitability in AI and storage. The results underscore Dell’s ability to capitalize on high-margin infrastructure demand.

Post-Earnings Price Action Review

The strategy of buying Dell shares after its Q3 earnings report and holding for 30 days delivered moderate returns but underperformed the market. With a CAGR of 2.94% and a Sharpe ratio of 0.11, the approach indicated low risk but limited upside. The stock edged up 2.30% in the latest trading day but fell 20.63% month-to-date.

CEO Commentary

Jeffrey Clarke, COO & Vice Chairman, emphasized Dell’s momentum in AI, citing $12.3 billion in Q3 server orders and a record $30 billion year-to-date. He highlighted the company’s competitive edge in rapid AI deployment and global support. Clarke expressed confidence in navigating challenges while scaling AI and storage solutions.

Guidance

Dell expects Q4 revenue of $31–$32 billion, with non-GAAP EPS of $3.50. Full-year revenue is projected at $111.7 billion, with AI server shipments targeting $25 billion. Operating income growth and continued capital returns to shareholders remain priorities.

Additional News

Dell announced David Kennedy as permanent CFO, following his interim role. The company returned $1.6 billion to shareholders in Q3 through buybacks and dividends, with $5.3 billion year-to-date. Notably, Dell raised FY26 AI server shipment guidance to $25 billion, reflecting 150% year-over-year growth.

Key Strategic Moves

Dell’s AI-focused expansion, including partnerships with U.S. Department of Energy and G42, underscores its market leadership. The company’s ability to engineer high-performance systems and deploy large-scale clusters positions it to capitalize on enterprise AI adoption. With a strong balance sheet and elevated guidance, Dell aims to sustain growth in infrastructure and AI-driven solutions.