Dell Technologies net income rises 32% to $1.54bn in Q3 FY 2026

Core Insights - Dell Technologies reported a net income of $1.54 billion for Q3 FY 2026, a 32% increase from $1.17 billion in the same period last year [1] - Net revenue for the quarter reached $27 billion, up 11% from $24.3 billion in Q3 FY25, driven by AI server shipments of $5.6 billion [1][2] Financial Performance - Diluted earnings per share (EPS) stood at $2.28, a 39% year-on-year increase, while non-GAAP diluted EPS reached a record $2.59, up 17% [2] - Cash flow from operations was reported at $1.2 billion [2] - Infrastructure Solutions Group (ISG) delivered revenue of $14.1 billion, a 24% year-over-year increase, with Servers and Networking revenue growing 37% to $10.1 billion [2] - Client Solutions Group (CSG) generated revenue of $12.5 billion, an increase of 3%, with commercial client revenue rising by 5% to $10.6 billion [3] Shareholder Returns - Dell Technologies returned $1.6 billion to shareholders through share buybacks and dividends during the quarter [3] - Total capital returned since the beginning of the fiscal year reached $5.3 billion, with over 39 million shares repurchased [3] Future Outlook - The company forecasts full-year fiscal 2026 revenue between $111.2 billion and $112.2 billion, representing a 17% increase at the midpoint compared to last year [5] - AI server shipments for the year are estimated at around $25 billion, an increase of more than 150% [5] - Projected GAAP diluted EPS for FY26 is $8.38 at the midpoint, up 31%, and non-GAAP diluted EPS is projected at $9.92, up 22% [6] Market Position - The company reported record AI server orders of $12.3 billion and unprecedented total orders of $30 billion year to date [4] - The five-quarter pipeline is significantly larger than the $18.4 billion backlog, indicating strong demand from neocloud, sovereign, and enterprise customers [4]