Dell Technologies (DELL) stock rallied as much as 8% on Wednesday morning even though the artificial intelligence (AI) server company came in shy of revenue estimates for its fiscal Q3. Investors seem to be responding partially to its earnings that printed at $2.59 per share in the third quarter, handily exceeding the consensus at $2.47. More News from Barchart Thanks to the post-earnings rally, Dell stock is now challenging its 100-day moving average (MA) at the $136 level. A decisive break above that ...

Market Performance - Major U.S. equities indexes, including the Dow, S&P 500, and Nasdaq, rose close to 1% ahead of the Thanksgiving holiday, driven by renewed optimism about a potential Federal Reserve rate cut next month [1] - Dell Technologies was highlighted as one of the best-performing stocks in the S&P 500, with shares increasing nearly 7% after the company raised its outlook and reported soaring demand for its artificial intelligence products [2] Company-Specific Developments - Robinhood Markets saw its shares soar nearly 10% as it expanded into prediction markets by acquiring LedgerX in partnership with Susquehanna International Group [2] - Petco Health and Wellness shares jumped 18% following a surprise profit report and an optimistic outlook due to its transformation efforts [3] - Workday was the worst performer in the S&P 500, with shares down 9% amid concerns regarding subscription revenue [3] - Deere & Company shares fell 5% after the company issued a weak forecast and warned of challenging market conditions [3] - HP's shares declined 2% as it announced a cost-cutting plan involving layoffs and provided a weak outlook due to increased costs from U.S. tariffs [4]

Core Insights - Dell Technologies (DELL) reported non-GAAP earnings of $2.59 per share for Q3 fiscal 2026, exceeding the Zacks Consensus Estimate by 4.44% and reflecting a 17% year-over-year increase [1] - Revenues rose 11% year-over-year to $27.01 billion, slightly missing the consensus estimate by 0.98%, primarily driven by record AI server shipments [1][8] - Following the earnings announcement, DELL shares increased by 4.53% in pre-market trading [1] Revenue Breakdown - Product revenues increased by 16% year-over-year to $21.2 billion, missing the Zacks Consensus Estimate by 0.16% [2] - Services revenues declined by 5% year-over-year to $5.75 billion, surpassing the Zacks Consensus Estimate by 3.95% [2] - Infrastructure Solutions Group (ISG) revenues surged by 24% year-over-year to $14.10 billion [2] AI Server Performance - Servers and networking revenues reached $10.12 billion, growing by 37% year-over-year, driven by strong demand for both AI and traditional servers [3] - Dell shipped $5.6 billion worth of AI servers in Q3, with a healthy AI server backlog of $18.4 billion [4] - Year-to-date orders for AI-optimized servers amounted to $30 billion, with a notable increase of $12.3 billion in the reported quarter [3] Operating Performance - Non-GAAP gross profit for Q3 increased by 4% year-over-year to $5.68 billion, with a gross margin contraction of 140 basis points to 21.1% [5] - SG&A expenses decreased by 6% year-over-year to $2.72 billion, while R&D expenses rose by 1% to $752 million [5] - Non-GAAP operating income was $2.50 million, up 11% year-over-year, with an operating margin expansion of 10 basis points to 9.3% [6] Financial Position - As of October 31, 2025, DELL had $9.56 billion in cash and cash equivalents, up from $8.14 billion on August 1, 2025 [7] - Total debt increased to $31.24 billion from $28.68 billion during the same period [9] - The company generated cash flow from operations of $1.2 billion, with adjusted free cash flow of $1.67 billion in Q3 [9] Future Guidance - For Q4 fiscal 2026, revenues are projected to be between $31 billion and $32 billion, indicating a potential 32% year-over-year growth [10] - For the full fiscal year 2026, revenues are expected to range from $111.2 billion to $112.2 billion, suggesting a 17% year-over-year growth [11] - AI server shipments for the full year are anticipated to reach approximately $25 billion, reflecting an increase of over 150% [11]

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Core Viewpoint - Dell has raised its fourth quarter and annual revenue guidance, driven by strong demand in its AI business, leading to a significant increase in its stock price [1][5][19]. Financial Performance - Dell reported record-breaking third quarter revenue of $27 billion, an 11% increase year-over-year, which was in line with expectations [4][5]. - The company exceeded earnings per share (EPS) expectations, reporting $2.59 compared to the anticipated $2.48 [5]. - Gross margins were reported at 21.1%, surpassing analyst estimates despite rising component costs [6][11]. Market Reaction - Following the earnings report, Dell's shares rose over 4.5%, reflecting investor optimism regarding the raised revenue guidance and strong AI demand [4][5][22]. - Analysts have shown a generally positive sentiment, with several firms adjusting their price targets upward, indicating confidence in Dell's future performance [7][8][10]. Future Outlook - Dell projects $25 billion in AI server sales for fiscal 2026, representing over 150% growth from previous estimates [5]. - Analysts expect long-term EPS growth of 15% over the next five years, aligning with the company's guidance [8]. - Despite some analysts lowering their price targets, the overall sentiment remains bullish due to strong AI demand and improved margins [10][11].

CNBC’s Kristina Partsinevelos reports on Dell as shares rise after the company forecast a stronger-than-expected fourth quarter, driven by increased AI sales. ...

Welcome back. Shares of Dell are jumping today after the company posted a strong forecast thanks to AI servers. Our Christina Psonis joins us now with the street reaction.Christina, what it tells us about the overall demand out there. >> Well, it seems like Wall Street right now is somewhat split on Dell's results. And I say that because first, management acknowledged the memory cost challenges, but says they're better prepared this cycle.Their argument is that Dell will have better memory supply than compe ...

Core Insights - Dell Technologies Inc. (DELL) shares showed positive movement in pre-market trading following the release of its Q3 results, despite a sequential sales decline of approximately 9% [2] Financial Performance - The Infrastructure Solutions Group (ISG) generated around $14.1 billion in revenue during the reported quarter [2]

Core Insights - Dell Technologies Inc. (DELL) shares showed positive movement in pre-market trading following the release of its Q3 results, despite a sequential sales decline of approximately 9% [2] Financial Performance - The Infrastructure Solutions Group (ISG) generated around $14.1 billion in revenue during the reported quarter [2] Investment Insights - Tech Contrarians, an investing group led by former technology sector engineers, has achieved a realized return of 65.8% on closed positions since inception, offering exclusive insights and resources for individual investors [1]

Dell provided investors with what they wanted to hear regarding guidance.Dell Technologies (DELL +6.91%) stock has been declining over the last month as investors have become skeptical of the artificial intelligence (AI) sector. The AI server provider mostly dispelled those fears with its earnings announcement last night, however. Shares jumped in response. As of 11:25 a.m. ET, Dell stock had rallied 5.8% even after its fiscal 2026 third-quarter revenue slightly missed analyst estimates. That's because the ...