Dell Delivers Mixed Q3 Earnings, Shares Volatile After Hours Even With Strong Outlook: 'Dell Is Winning In AI'

Dell Technologies Inc (NYSE:DELL) reported financial results for the third quarter on Tuesday after the market close. Here’s a rundown of the report.

• DELL shares are consolidating after recent moves. Get the inside scoop here.

Q3 Highlights: Dell reported third-quarter revenue of $27.01 billion, missing the consensus estimate of $27.13 billion, according to Benzinga Pro. The tech hardware provider reported third-quarter adjusted earnings of $2.59 per share, beating analyst estimates of $2.47 per share.

Total revenue was up 11% on a year-over-year basis. Here's a breakdown of revenue by category.

• Servers and Networking: $10.1 billion, up 37% year-over-year
• Storage: $4 billion, down 1% year-over-year
• Commercial Client: $10.6 billion, up 5% year-over-year
• Consumer: $1.9 billion, down 7% year-over-year

Cash flow from operations was $1.2 billion in the third quarter. Dell said it returned $1.6 billion to shareholders via share repurchases and dividends in the quarter. The company ended the period with approximately $9.57 billion in cash and cash equivalents.

“AI momentum is accelerating in the second half of the year, leading to record AI server orders of $12.3 billion and an unprecedented $30 billion in orders year to date,” said Jeff Clarke, vice chairman and COO of Dell.

“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.”

Outlook: Dell expects fourth-quarter revenue to be between $31 billion and $32 billion, up 32% year-over-year at the midpoint. The company anticipates fourth-quarter adjusted earnings of $3.50 per share versus estimates of $3.23 per share.

Dell also raised its full-year outlook. Dell expect fiscal 2026 revenue in the range of $111.2 billion to $112.2 billion, up from a prior range of $105 billion to $109 billion. The company raised its full-year adjusted earnings guidance from $9.55 per share to $9.92 per share versus estimates of $9.55 per share.

Dell’s management team will further discuss the quarter on an earnings call scheduled for 4:30 p.m. ET.

DELL Price Action: Dell shares were down 1.18% in after-hours Tuesday, trading at $124.43 at the time of publication, according to Benzinga Pro.

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