Dell Technologies reported fiscal 2026 third-quarter results and issued upgraded fourth-quarter and full-year guidance, driving its shares higher in extended United States trading on Tuesday (Wednesday AEDT).
The company also confirmed David Kennedy as its permanent chief financial officer.
The results came in broadly ahead of market expectations. Adjusted earnings per share (EPS) hit a record $2.59 exceeded the $2.47 consensus estimate, while revenue of $27.01 billion was marginally below the expected $27.13 billion, despite hitting a record high and lifting 11% year-on-year.
Cash flow from operations reached $1.2 billion.
Shares jumped around 4.5% in extended trading as the company flagged further growth driven largely by AI server demand.
CFO David Kennedy said: “FY26 will be another record year, and we’re raising our AI shipment guidance to roughly $25 billion, up over 150% year over year, and revenue guidance to $111.7 billion, up 17%.”
Dell expects to sell $9.4 billion worth of AI servers in the fourth quarter, excluding a recent deal to supply Nvidia-based GB300 systems to Iren, a neocloud provider that plans to rent the systems to Microsoft.
The company forecasts approximately $31.5 billion in fourth-quarter sales, well above the $27.59 billion expected.
Fourth-quarter earnings per share are projected at $3.50, compared with the $3.21 consensus.
Vice chairman and COO Jeff Clarke said: "Dell is winning in AI because of our unique ability to engineer bespoke high-performance solutions, rapidly deploy large, complex clusters, and provide global support.”
Dell’s Infrastructure Solutions Group delivered $14.11 billion in revenue, in line with expectations.
Server and networking sales accounted for $10.1 billion, up 37% from a year earlier, with AI server shipments contributing $5.6 billion. The company also generated $4 billion in storage revenue.
By contrast, Dell’s Client Solutions Group - the company’s laptop and PC division - reported $12.48 billion in revenue. Although this represented a 3% year-on-year increase, it fell slightly short of the $12.65 billion expected.
Traditional PC demand remained soft, with the segment down 7% on an annual basis.
By 9:40 am AEDT (10:40 pm GMT), Dell shares were trading at US$132.58, up 5.3% from Tuesday’s close of US$125.92. The company’s market capitalisation now stands at US$84.44 billion.
