Dell Technologies 2026 Q3 Earnings Strong Revenue Growth and Raised Guidance

Dell Technologies (DELL) reported fiscal 2026 Q3 earnings on November 25, 2025, with revenue and EPS exceeding expectations. The company raised full-year guidance, citing robust demand for AI servers and infrastructure solutions. Despite missing revenue forecasts, the results underscored strategic momentum in high-margin segments.

Revenue

Dell’s total revenue surged 10.8% year-over-year to $27 billion, driven by strong performance in its Infrastructure Solutions Group (ISG). ISG revenue reached $14.11 billion, up 24% from the prior year, fueled by a 37% jump in servers and networking. The Client Solutions Group (CSG) contributed $12.48 billion in revenue, with commercial client sales rising 5% despite a 7% decline in consumer revenue. Corporate and other segments added $420 million, while storage revenue dipped 1%. The results reflect Dell’s strategic focus on AI infrastructure and enterprise solutions.

Earnings/Net Income

Dell’s non-GAAP EPS rose to $2.59, a 17% increase from $2.28 in 2025 Q3, while GAAP EPS grew 39% to $2.28. Net income hit $1.55 billion, a 32.3% year-over-year increase. The earnings growth highlights the company’s profitability in high-demand AI and infrastructure markets, supported by operational efficiency and margin management.

Post-Earnings Price Action Review

The strategy of buying Dell shares after its revenue growth on the report date and holding for 30 days showed moderate returns but underperformed the market. With a CAGR of 2.94%, it trailed the benchmark by 56.18 percentage points. The strategy’s maximum drawdown of 0.00% and Sharpe ratio of 0.11 indicated low risk but limited upside, suggesting cautious investor sentiment despite strong fundamentals.

CEO Commentary

Jeff Clarke, COO & Vice Chairman, emphasized Dell’s record $27 billion revenue and $2.59 EPS, driven by AI server demand. The company’s ability to engineer high-performance systems and deploy large clusters has positioned it as a leader in the AI infrastructure market. Clarke noted a $12.3 billion in AI server orders for Q3, with a five-quarter pipeline exceeding $18.4 billion.

Guidance

Dell raised its fiscal 2026 revenue forecast to $111.2–$112.2 billion and non-GAAP EPS to $9.92. For Q4, the company expects revenue of $31–$32 billion and non-GAAP EPS of $3.50. These updates reflect confidence in sustained AI demand and infrastructure growth.

Additional News

1. C-Level Changes: David Kennedy was appointed permanent CFO, succeeding Jeff Clarke, who transitioned to COO.

2. Dividend/Buyback News: Dell returned $1.6 billion to shareholders via buybacks and dividends in Q3, with $5.3 billion returned year-to-date.

3. AI Strategic Move: Dell and NVIDIA announced advancements to the Dell AI Factory, integrating NVIDIA AI technology for scalable enterprise solutions. The collaboration aims to accelerate AI deployment through automated platforms and enhanced infrastructure.

Image suggestion: A visual representation of Dell’s AI infrastructure growth, showing servers, networking, and collaboration with NVIDIA.

Article Polishing

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