Dell raised its annual projections for the key artificial intelligence server market, a sign of sustained demand for the type of machines needed in the current data center boom. https://t.co/ug68yOcEvi ...

Group 1 - Dell Technologies expects full-year revenue to be between $111.2 billion and $112.2 billion, an increase from the previous estimate of $105 billion to $109 billion [1] - The company anticipates AI server shipments to reach $25.8 billion, surpassing analyst expectations of $20.82 billion and its own prior forecast of $20 billion [1]

Financial Performance - Record Q3 revenue of $27 billion, up 11% year over year, with record Q3 profitability and strong cash generation [2] - Full-year FY26 revenue expected between $111.2 billion and $112.2 billion, representing a 17% increase year over year [6] - Operating income for Q3 was $2.119 billion, up 23% year over year [7] - Total net revenue for the three months ended October 31, 2025, was $27,005 million, representing an 11% increase compared to $24,366 million for the same period in 2024 [21] - Total consolidated net revenue for the three months ended October 31, 2025, was $27,005 million, an increase of 11% compared to $24,366 million for the same period in 2024 [30] - Infrastructure Solutions Group (ISG) net revenue reached $14,107 million, a 24% increase from $11,368 million year-over-year [30] - Client Solutions Group (CSG) total net revenue was $12,478 million, reflecting a 3% increase from $12,131 million in the prior year [30] Earnings and EPS - GAAP diluted EPS expected to be $8.38 at the midpoint, up 31% year over year, and non-GAAP diluted EPS to be $9.92, up 22% [6] - Non-GAAP diluted EPS for Q3 was $2.59, an increase of 17% year over year [7] - Earnings per share attributable to Dell Technologies Inc. increased by 39% to $2.28 for the three months ended October 31, 2025, and by 26% to $5.34 for the nine months ended [46] - Non-GAAP earnings per share attributable to Dell Technologies Inc. is projected to be $3.50 for the three months ending January 30, 2026, and $9.92 for the fiscal year ending January 30, 2026 [53] Cash Flow and Returns - Capital return to shareholders in Q3 amounted to $1.6 billion, with a total of $5.3 billion returned year to date [3] - Free cash flow decreased by 45% to $506 million for the three months ended October 31, 2025, but increased by 122% to $4.602 billion for the nine months ended [50] - Adjusted free cash flow rose by 133% to $1.67 billion for the three months ended October 31, 2025, and by 145% to $6.42 billion for the nine months ended [50] - Cash flow from operations decreased by 25% to $1.172 billion for the three months ended October 31, 2025, while it increased by 65% to $6.511 billion for the nine months ended [50] Orders and Shipments - AI shipment guidance raised to approximately $25 billion, reflecting over 150% year-over-year growth [2] - Record AI server orders of $12.3 billion in Q3, with total orders year to date reaching $30 billion [2] Expenses and Margins - The gross margin for the three months ended October 31, 2025, was 20.7%, down from 22.0% in the same period last year [21] - Research and development expenses increased by 1% to $752 million for the three months ended October 31, 2025 [21] - Non-GAAP gross margin for the three months ended October 31, 2025, was $5,686 million, a 4% increase from $5,490 million in the same quarter of 2024 [38] - Non-GAAP operating income for the three months ended October 31, 2025, was $2,503 million, an 11% increase from $2,252 million year-over-year [38] - Non-GAAP net income for the three months ended October 31, 2025, was $1,762 million, reflecting an 11% increase from $1,583 million in the prior year [38] Assets and Liabilities - Total assets increased to $87,479 million as of October 31, 2025, up from $79,746 million as of January 31, 2025 [23] - Total liabilities rose to $90,099 million as of October 31, 2025, compared to $81,133 million as of January 31, 2025 [23] Interest and Other Expenses - The company reported a 36% decrease in interest and other net expenses, totaling $(178) million for the three months ended October 31, 2025, compared to $(276) million in the same period last year [21]

Core Insights - Dell forecasts fourth-quarter revenue and profit above Wall Street estimates, driven by increased demand for AI-optimized servers, leading to a 5% rise in shares during premarket trading [1] - The company raised its annual revenue and profit expectations, anticipating $25 billion in fiscal 2026 revenue from AI server shipments, up from a previous estimate of $20 billion [2] - Dell's AI server backlog reached $18.4 billion by the end of the third quarter, supported by $12.3 billion in new orders, with $5.6 billion in servers shipped during the quarter [2] Financial Performance - Dell expects fourth-quarter revenue between $31 billion and $32 billion, surpassing expectations of $27.59 billion, with an adjusted profit forecast of $3.50 per share, above estimates of $3.21 [5] - The company raised its annual revenue forecast to between $111.2 billion and $112.2 billion from earlier expectations of $105 billion to $109 billion, and adjusted earnings per share to $9.92 [8] - Third-quarter revenue was reported at $27.01 billion, slightly missing estimates of $27.13 billion, while adjusted profit of $2.59 per share exceeded estimates of $2.47 [8] Market Dynamics - Increased competition in the AI server market from rivals like Super Micro Computer is raising concerns about margin pressure, alongside rising production costs [2] - The demand for AI infrastructure from major tech companies has led to price increases for dynamic random access memory and NAND chips, impacting the server market [3] - Dell's Chief Operating Officer noted that the current market conditions allow for potential price increases due to higher customer demand than available supply [4]

Core Insights - Dell reported fiscal third-quarter earnings that fell short of Wall Street revenue expectations but forecasted a stronger fourth quarter driven by increased AI sales [1][2] - The company expects fourth-quarter sales of approximately $31.5 billion, exceeding analyst estimates of $27.59 billion, and anticipates earnings per share of $3.50 compared to the expected $3.21 [1][2] Financial Performance - Dell's net income for the quarter was $1.54 billion, or $2.28 per diluted share, compared to $1.17 billion, or $1.64 per diluted share in the same period last year [2] - Overall revenue increased by 11% year-over-year, with the data center business reporting $14.11 billion in sales, aligning with analyst estimates [3][5] AI and Infrastructure - The company raised its expectations for AI server shipments to $25 billion from $20 billion and increased its full-year revenue guidance to $111.7 billion from $107 billion [2] - Dell's AI systems primarily serve large businesses, governments, and neoclouds, with significant sales driven by $5.6 billion in AI server shipments [3][5] Segment Performance - The Infrastructure Solutions Group reported $10.1 billion in server and networking sales, a 37% increase year-over-year, while the Client Solutions Group, which includes laptops and PCs, reported $12.48 billion in sales, a 3% increase but below the expected $12.65 billion [5][6] - The laptop and PC segment experienced a 7% decline year-over-year [6] Shareholder Returns - The company allocated $1.6 billion during the quarter for share repurchases and dividends [6]

Dell forecast fourth-quarter revenue and profit above Wall Street estimates on Tuesday, as increasing investments in data centers to support artificial intelligence applications boost demand for its s... ...

Core Viewpoint - Dell's upcoming earnings report is highly anticipated, particularly regarding its margin performance amid rising memory chip costs, which have led to a significant decline in its stock price over the past month [1][2][4]. Financial Performance Expectations - Analysts expect Dell to report earnings per share (EPS) of $2.48 on revenues of $27.2 billion, with a focus on the company's ability to manage margins effectively [5]. - Last quarter, Dell's operating margin was reported at 7%, and the company aims to increase this to between 10% and 14% by the end of the fiscal year, which is just one quarter away [4][5]. Market Sentiment and Analyst Actions - There is a notable concern among analysts regarding Dell's margin resilience, leading many to lower their estimates and price targets ahead of the earnings report [2][6][7]. - Bank of America has adjusted its price target for Dell, anticipating that the company will likely implement measures to reduce operating expenses to counteract rising memory costs [6]. Industry Context - The broader market sentiment is influenced by concerns over potential bubbles in the AI sector, particularly as Dell is closely tied to Nvidia, which has faced scrutiny regarding its valuations [8][9]. - The current trading environment reflects a cautious approach, with analysts wary of potential earnings misses that could lead to further stock price declines [9]. Trading Strategies - A neutral to bullish trading strategy is being suggested for Dell, utilizing a four-legged spread to capitalize on higher implied volatility levels, allowing for profitability even if the stock price remains stable or declines slightly [11][12][16].

Core Insights - Over the last 60 days, more than $25 billion in insider transactions have occurred, predominantly consisting of sell orders [1][2] - The total value of insider sales in this period amounts to approximately $25.187 billion, indicating significant net outflows [2] Company-Specific Analysis - **Rollins (ROL)**: Despite insider selling, the company's share price has reached all-time highs this year, and it recently completed a $1 billion equity raise, suggesting that the insider sale may be for liquidity or future investments [6] - **Corebridge Financial (CRBG)**: An insider sold 32.6 million shares for over $1 billion, with a notable sale of 20 million shares at $56.93 per share, totaling $1.14 billion [10]

Time now for Options Corner. Joining us to take a deeper look at the chart is Rick Dukat, lead market technician. All right, Rick, this Dell's been a slight underperformer compared to the S&P 500.Which trends this year. What trends are you watching. >> Yes, uh, a notable underperformer as well versus its own tech sector, this recent unwind that we've seen.Seems to have hit Dell a little bit harder, down about 11.7% during the past year. XLK ETF up 19.7%. So a big disparity there.Uh but when we look at our c ...

Dell Technologies Inc. (NYSE:DELL) will release earnings results for the third quarter after the closing bell on Tuesday, Nov. 25.Analysts expect the Round Rock, Texas-based company to report quarterly earnings at $2.48 per share, up from $2.15 per share in the year-ago period. The consensus estimate for Dell's quarterly revenue is $27.29 billion, compared to $24.37 billion a year earlier, according to data from Benzinga Pro.The company has beaten analyst estimates for revenue in seven of the past 10 quarte ...