Dell Technologies beat estimates on both revenue and earnings per share last quarter with growth in its artificial intelligence products, but fell in after-hours trade as its third-quarter guidance fell below expectations.
Revenue was a record US$29.78 billion, up 19% year-over-year and above LSEG estimates of $29.17 billion. Adjusted earnings per share were $2.32, also up 19% and beating estimates of $2.30.
“We’ve now shipped $10 billion of AI solutions in the first half of the FY26, surpassing all shipments in FY25. This helped deliver another record revenue quarter in our Servers and Networking business, which grew 69%,” said Dell COO Jeff Clarke.
“Demand for our AI solutions continues to be exceptional, and we’re raising our AI server shipment guidance for FY26 to $20 billion dollars.”
Operating income was $1.8 billion, increasing by 10% year-over-year.
Dell's Infrastructure Solutions Group segment also reported record revenue, rising 44% to $16.8 billion. Its Servers and Networking revenue surged by 69% to $12.9 billion.
Client Solutions Group revenue was up 1% to $12.5 billion. While commercial client revenue grew by 2% to $10.8 billion, consumer revenue declined by 7% to $1.7 billion.
The company’s third-quarter guidance includes $26.5-27.5 billion in revenue and earnings per share of $2.45. This is lower than LSEG estimates of $2.55.
Its full-year guidance projects revenue of $105-109 billion, with earnings per share of $7.98 at the midpoint. Dell has predicted that its fourth quarter will be stronger than its third quarter due to seasonality.
Dell’s (NYSE: DELL) share price dropped 5.1% to $127.25 in after-hours trading, following a close at $134.05. Its market capitalisation is $89.64 billion.
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