Dell lifts annual guidance, touts stronger AI-related demand

Investing.com -- Dell Technologies on Tuesday reported mixed Q3 results, but lifted its annual guidance, and touted stronger AI-related hardware demand ahead.

Dell Technologies Inc (NYSE: DELL) fell slightly in after-hours trading following the report.

For the third quarter, the AI server maker reported adjusted earnings per share (EPS) of $2.59 on revenue of $27 billion, compared with estimates for $2.48 per share and $27.32B, respectively.

Revenue was weighed down weaker-than-expected growth in its client solutions group, which includes PCs and laptops, with revenue rising 3% to $12.49B year-on-year in Q3.

The infrastructure solutions group saw revenue jumped 24% YoY in Q3.

Looking ahead to the fourth quarter, Dell forecast non-GAAP diluted EPS to be $3.50 at the midpoint on revenue between $31B and $32B, beating analyst estimates of $3.21 and $27.67B, respectively.

Looking further ahead, the company now sees full-year 2026 non-GAAP diluted EPS to be $9.92 at the midpoint on revenue in a range of $111.2B and $112.2B, up from a prior estimate for non-GAAP diluted EPS of $9.55 on revenue of $107B.

The stronger guidance comes as the company raised its AI shipment guidance to roughly $25B, up over 150% year over year, and revenue guidance to $111.7 billion, up 17%.

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