Live Earnings: Will Dell Technologies (DELL) Spike After Q4 Results

Core Insights - Dell Technologies reported a significant AI server backlog of $18.4 billion, with analysts expecting a non-GAAP EPS of $3.52 for Q4 fiscal 2026 [1] - The company recorded $12.3 billion in AI server orders last quarter and accumulated $30 billion in AI server orders year to date [1] - Dell's ISG operating margin reached 13.3%, despite AI servers typically compressing margins, and the stock trades at 16 times trailing earnings [1] Financial Performance - Dell posted revenue of $27.0 billion last quarter, slightly missing consensus estimates, but non-GAAP EPS of $2.59 beat expectations [1] - Management guided Q4 revenue to be between $31.0 billion and $32.0 billion, with a GAAP EPS midpoint around $3.05, indicating a meaningful step up from Q3 [1] - Full-year FY26 revenue is guided to approximately $111.7 billion at the midpoint [1] Key Metrics and Estimates - Q4 FY26 Consensus Estimates: Revenue of $31.63 billion and non-GAAP EPS of $3.51 [1] - Full-Year FY26 Consensus Estimates: Revenue of $111.85 billion and non-GAAP EPS of $9.90 [1] Strategic Considerations - Full-Year Guidance Confirmation: The Q4 print will confirm or challenge the FY26 revenue target, with management's tone on FY27 being crucial [1] - PC Refresh Cycle Timing: The management noted delays in the PC refresh cycle, with enterprise buyers moving slowly [1] - Storage Revenue Growth: A return to growth in storage revenue, which was flat year over year in Q3, is essential for overall margin support [1] - ISG Margin Trajectory: Improvement in ISG operating income is expected, and its sustainability is a key test [1] - AI Backlog Conversion: The conversion of the AI server backlog into revenue is critical, with component availability being a wildcard [1]