Dell’s AI Server Surge Offsets PC Weakness as Outlook Beats Estimates
Dell Technologies delivered a mixed third-quarter performance, with revenue of $27.01 billion narrowly missing analyst expectations of $27.13 billion. Earnings per share of $2.59 surpassed the $2.47 consensus, sparking a 5% after-hours stock rally.
The company’s bullish fourth-quarter forecast of $31.5 billion revenue—far exceeding the $27.59 billion estimate—reflects surging demand for AI servers. Dell raised its fiscal 2026 AI server shipment projection to $25 billion, up from $20 billion, as backlog swelled to $18.4 billion with $12.3 billion in new orders.
While the Client Solutions Group eked out just 3% annual growth to $12.48 billion, the AI-driven Infrastructure Solutions Group now anchors Dell’s transformation. The appointment of David Kennedy as permanent CFO coincides with raised full-year guidance to $111.7 billion revenue.
