Key Takeaways:
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• Full-year revenue outlook raised to $111.2B–$112.2B, up from $105B–$109B.
• Q3 revenue grew 11% to $27.01B; adjusted EPS of $2.59 beat expectations.
• AI server shipments expected to exceed $25B this year—more than double prior levels.
• Q4 guidance sharply ahead of consensus, signaling sustained AI momentum.
What Happened?
Dell Technologies increased its full-year revenue and earnings guidance, driven by accelerating demand for AI infrastructure. Q3 revenue rose 11% to $27.01B and adjusted EPS reached $2.59, exceeding analyst estimates. Net income improved to $1.55B from $1.17B year over year. Management highlighted that AI server shipments are expected to more than double in 2025, totaling $25B, with momentum strengthening in the second half.
Why It Matters?
Dell’s results underscore its growing position in the AI infrastructure buildout, one of the strongest investment themes in enterprise computing. Higher guidance—well above Street expectations—suggests continued margin leverage and scale within AI servers, a high-growth category increasingly tied to hyperscaler and enterprise adoption. The beat-and-raise quarter reinforces Dell as a key beneficiary of hardware spending tied to model training and inference needs, potentially supporting re-rating potential as revenue mix shifts toward AI.
What’s Next?
For Q4, Dell forecasts revenue of $31B–$32B and adjusted EPS of $3.50, meaningfully above consensus. Investors should monitor order flow, hyperscaler capex cycles and competitive positioning in AI hardware, as sustained adoption could expand full-year upside further. The pace of AI system rollouts—and Dell’s ability to secure share in next-gen server deployments—remains the central catalyst heading into 2026.
