Dell Technologies(US:DELL) ZACKSยท2025-11-20 16:15Core Insights - Dell Technologies (DELL) is expected to report third-quarter fiscal 2026 results on November 25, 2025, with projected revenues between $26.5 billion and $27.5 billion, indicating an 11% year-over-year growth [1] - The Zacks Consensus Estimate for revenues is $27.27 billion, suggesting an 11.93% growth year-over-year, while earnings are estimated at $2.48 per share, reflecting a 15.35% increase [2] Revenue and Earnings Expectations - For fiscal Q3 2026, revenues are anticipated to be between $26.5 billion and $27.5 billion, with a midpoint of $27 billion indicating 11% growth year-over-year [1] - The ISG revenues are estimated at $13.884 billion, indicating a 22% year-over-year growth, while CSG revenues are pegged at $12.654 billion, suggesting a 4.3% year-over-year growth [5] Market Demand and Growth Drivers - The demand for AI-optimized servers is expected to significantly benefit Dell's fiscal third-quarter results, driven by ongoing digital transformation and interest in generative AI applications [4] - Dell shipped $8.2 billion in AI servers in Q2 fiscal 2026, with a $5.6 billion increase in AI server orders, and an AI backlog of $11.7 billion [6] Competitive Landscape - Dell Technologies faces challenges from weaker demand for traditional servers and storage in North America, as well as fierce competition in the tech landscape [7] - Despite underperforming the broader Zacks Computer & Technology sector, Dell shares have outperformed Hewlett-Packard (HPE) in the same timeframe [8][9] Strategic Partnerships and Innovations - Dell's expanding partner base, including NVIDIA, Microsoft, and others, is likely to drive growth in Q3 fiscal 2026 [14] - Recent advancements to Dell's AI Data Platform aim to enhance data integration and performance, supporting enterprise AI outcomes [16] Stock Valuation - Dell Technologies shares are considered undervalued, with a forward 12-month P/S ratio of 0.71X compared to the sector's 6.55X [12]