Dell earnings report Q3 2026

Ditch Fiscal third-quarter earnings reported Tuesday fell short of Wall Street expectations for revenue, but the company projected a stronger-than-expected fourth quarter led by growth in AI sales.

Dell shares fell slightly in extended trading.

Here’s how Dell performed against LSEG consensus estimates:

• EPS:Adjusted to $2.59 compared to an estimated $2.47
• Income: $27.01 billion vs. $27.13 billion estimated

Dell said it expects fourth-quarter sales of $31.5 billion, compared with analysts’ expectations of $27.59 billion. The company said it expects fourth-quarter earnings per share of $3.50, compared with expectations of $3.21.

The company said it was raising its expectations for AI server shipments during the year to $25 billion from $20 billion, and raising its full-year revenue guidance to $111.7 billion from $107 billion.

Dell reported net income of $1.54 billion, or $2.28 per diluted share, during the quarter, compared with $1.17 billion, or $1.64, in the year-ago period.

The company is an important bellwether for the health of the AI ​​infrastructure industry and is one of the top vendors of systems based nvidia’s Graphics processor. Total revenue in the quarter grew 11% year-on-year.

The main customers of Dell’s artificial intelligence systems are large businesses, governments and so-called neoclouds such as corewaveDell sells short to big cloud companies, commonly known as hyperscalers, which have been Nvidia’s biggest buyers until now,

The company said it expects to sell $9.4 billion of AI servers in the fourth quarter, and that doesn’t include a deal announced in November to sell Nvidia-based GB300 systems to Irene, a neocloud that plans to rent them. Microsoft,

Dell’s data center business, called Infrastructure Solutions Group, reported sales of $14.11 billion, in line with analysts’ estimates. Of that, $10.1 billion was for server and networking parts, up 37% year-over-year. Much of that growth was driven by $5.6 billion in AI server shipments. Dell said it sold $4 billion of storage gear during the quarter.

But the company said its laptop and PC business, called Client Solutions Group, reported sales of $12.48 billion, up 3% year-over-year but slightly below the $12.65 billion expected by analysts.

Dell’s laptop and PC business suffered particularly heavy losses, declining 7% year-on-year.

The company said it spent $1.6 billion on share repurchases and dividends during the quarter.

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