Market Overview - Market indices began flat but rose due to expectations of easing Fed funds rates, with Kevin Hassett being a frontrunner for Fed Chair [1] - The Dow increased by 664 points (+1.43%), while the Russell 2000 saw a gain of +2.14%, S&P 500 rose +0.91%, and Nasdaq increased +0.67% [2] Housing Market Data - Case-Shiller Home Prices for September rose by +1.3%, following a revised +1.4% the previous month, marking the fourth consecutive month where home prices lagged behind inflation [3][4] - Pending Home Sales increased by +1.9% month over month in October, up from a revised +0.10% the prior month, although still down -0.40% year over year [5] Economic Indicators - Consumer Confidence index dropped significantly to 88.7 from 95.5, the lowest since April [6] - Business Inventories for August remained unchanged at 0.0%, marking the third consecutive month without change [7] Earnings Reports - Urban Outfitters (URBN) reported earnings of $1.28 per share, exceeding expectations of $1.19, with revenues of $1.53 billion [9] - Dell Technologies (DELL) reported Q3 earnings of $2.59 per share, beating estimates, but revenues of $27.01 billion fell short of expectations [10] - Hewlett Packard (HPQ) shares fell -5% due to a revenue miss, reporting earnings of 93 cents per share against expectations, with sales of $14.64 billion below projections [11]

Core Insights - Dell Technologies reported $27.01 billion in revenue for the quarter ended October 2025, marking a year-over-year increase of 10.8% and an EPS of $2.59 compared to $2.15 a year ago, although it fell short of the Zacks Consensus Estimate of $27.27 billion by -0.98% [1] - The company achieved an EPS surprise of +4.44%, with the consensus EPS estimate being $2.48 [1] Financial Performance - Infrastructure Solutions Group net revenue was $14.11 billion, exceeding the average estimate of $13.88 billion, representing a year-over-year change of +24.1% [4] - Client Solutions Group net revenue was $12.48 billion, slightly below the estimated $12.65 billion, with a year-over-year increase of +2.9% [4] - Infrastructure Solutions Group - Storage reported net revenue of $3.98 billion, slightly above the estimate of $3.93 billion, showing a year-over-year decrease of -0.6% [4] - Client Solutions Group - Consumer net revenue was $1.86 billion, surpassing the estimate of $1.83 billion, but reflecting a year-over-year decline of -6.8% [4] - Infrastructure Solutions Group - Servers and Networking achieved net revenue of $10.13 billion, slightly below the estimate of $10.21 billion, with a significant year-over-year increase of +37.5% [4] - Corporate and Other net revenue was $420 million, in line with the estimate of $417.89 million [4] - Client Solutions Group - Commercial net revenue was $10.62 billion, below the estimate of $10.89 billion, with a year-over-year increase of +4.8% [4] - Products net revenue was $21.26 billion, slightly below the estimate of $21.29 billion, reflecting a year-over-year increase of +16.2% [4] - Services net revenue was $5.75 billion, exceeding the estimate of $5.53 billion, but showing a year-over-year decline of -5.4% [4] Operating Income - Client Solutions Group operating income was $748 million, below the average estimate of $825.93 million [4] - Infrastructure Solutions Group operating income was $1.74 billion, exceeding the average estimate of $1.66 billion [4] Stock Performance - Dell Technologies shares have returned -21.6% over the past month, compared to the Zacks S&P 500 composite's -1.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Dell Technologies reported a revenue of $27 billion for Q3 of fiscal year 2026, marking an 11% year-over-year increase. Diluted earnings per share reached $2.28, up 39%, while non-GAAP diluted earnings per share hit a record $2.59, growing 17% [1][2]. Financial Performance - The Infrastructure Solutions Group (ISG) generated $14.1 billion in revenue for Q3, a 24% increase year-over-year. Server and networking revenue reached a record $10.1 billion, growing 37%, while storage revenue was $4 billion, down 1%. Operating profit for ISG was $1.7 billion, up 16% [1]. - The Client Solutions Group (CSG) reported revenue of $12.5 billion for the quarter, a 3% increase year-over-year. Commercial customer revenue was $10.6 billion, up 5%, while consumer revenue was $1.9 billion, down 7%. Operating profit for CSG remained flat at $748 million compared to the same period last year [1]. Strategic Developments - Dell's COO Jeff Clarke highlighted the rapid growth in artificial intelligence (AI), with AI server orders reaching a new high of $12.3 billion in Q3. Year-to-date, AI server orders have totaled an unprecedented $30 billion. The company has a backlog of $18.4 billion in orders, significantly exceeding future order reserves [2].

HP plans to cut up to 10% of its workforce as it invests further in artificial intelligence, a move its chief executive sees as essential to maintaining its competitive edge https://t.co/EW3MiXpoRq ...

Financial Data and Key Metrics Changes - Total revenue reached $27 billion, up 11% year-over-year, with year-to-date revenue up 12% [5][12] - Earnings per share (EPS) increased 17% to $2.59, driven by improved profitability in AI and storage [5][13] - Gross margin rose 4% to $5.7 billion, or 21.1% of revenue, primarily due to a shift towards AI servers [12][14] - Operating income grew 11% to $2.5 billion, or 9.3% of revenue, supported by higher revenue and lower operating expenses [12][14] Business Line Data and Key Metrics Changes - Infrastructure Solutions Group (ISG) revenue was a record $14.1 billion, up 24%, marking seven consecutive quarters of double-digit growth [14] - Client Solutions Group (CSG) revenue increased 3% to $12.5 billion, with commercial revenue up 5% [15] - AI server orders reached $12.3 billion in the quarter, with year-to-date orders totaling $30 billion [7][14] - Storage revenue was $4 billion, down 1%, but demand for Dell's IP portfolio remained strong, particularly in PowerStore [8][14] Market Data and Key Metrics Changes - Demand for traditional servers grew double digits, particularly in EMEA and North America [8] - International growth in CSG accelerated sequentially, up double digits year-over-year [9] - The backlog for AI servers reached a record $18.4 billion, indicating strong future demand [7][14] Company Strategy and Development Direction - The company aims to capitalize on AI infrastructure buildouts and the ongoing PC refresh cycle [11][19] - Focus on engineering bespoke, high-performance solutions and rapid deployment capabilities in AI [11] - Continued emphasis on operational discipline and capital returns to shareholders [6][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current commodity supply environment, expecting Q4 to remain largely unchanged from Q3 [10][19] - The outlook for Q4 includes revenue guidance between $31 billion and $32 billion, with ISG expected to grow mid-60s percentage [17] - Management remains optimistic about the AI business, supported by a strong backlog and pipeline [18][19] Other Important Information - The company returned $1.6 billion to shareholders, including share repurchases and dividends [15][16] - The core leverage ratio stands at 1.6x, indicating a strong balance sheet [15] Q&A Session Summary Question: Customer reaction to pricing discussions across product categories - Management acknowledged the unique situation of rising costs across all products and emphasized their experience in navigating such cycles [24][26] Question: Impact of NVIDIA's vertical integration on Dell's strategy - Management remains confident in their ability to differentiate and deliver complex solutions at scale, despite potential changes in the supply chain [36][38] Question: AI server margins and future expectations - AI server margins improved sequentially, with expectations to maintain mid-single-digit margins moving forward [42][44] Question: Outlook on the PC refresh cycle - Management highlighted that the Windows 11 transition is not complete, presenting significant upgrade opportunities [51][52] Question: AI business growth and financing issues - Management expressed strong conviction in AI demand across various customer segments, with a robust pipeline supporting future growth [58][61] Question: ISG margins and future guidance - ISG margins improved significantly, driven by strong demand for Dell's IP storage portfolio and pricing discipline [70][72] Question: Traditional server demand and upgrade cycle - Management noted that a significant portion of the install base consists of older generation servers, indicating ongoing modernization opportunities [76][77]

Financial Data and Key Metrics Changes - Total revenue reached $27 billion, up 11% year-over-year, with year-to-date revenue up 12% [5][12] - Earnings per share (EPS) increased 17% to $2.59, driven by improved profitability in AI and storage [5][12] - Gross margin was up 4% to $5.7 billion, or 21.1% of revenue, primarily due to a mix shift to AI servers [12][14] - Operating income grew 11% to $2.5 billion, or 9.3% of revenue, supported by higher revenue and lower operating expenses [12][14] Business Line Data and Key Metrics Changes - ISG revenue was a record $14.1 billion, up 24%, marking seven consecutive quarters of double-digit growth [14] - AI server orders reached a record $12.3 billion in the quarter, with shipments of $5.6 billion, totaling $15.6 billion year-to-date [7][14] - CSG revenue increased 3% to $12.5 billion, with commercial revenue up 5% and consumer revenue down 7% [9][15] Market Data and Key Metrics Changes - Demand for traditional servers grew double digits, particularly in EMEA and North America [8] - International growth in CSG accelerated sequentially, up double digits year-over-year [9] - The PC refresh cycle remains durable, supported by an aging installed base and a significant portion of systems not yet upgraded to Windows 11 [9] Company Strategy and Development Direction - The company aims to capitalize on AI infrastructure buildouts and ongoing PC refresh cycles [10][11] - Competitive edge in AI is attributed to the ability to engineer bespoke, high-performance solutions and rapid deployment capabilities [11] - The focus remains on driving shareholder value through strong cash generation and capital returns [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current commodity supply environment and securing supply [10] - The outlook for Q4 includes expected revenue between $31 billion and $32 billion, with ISG and CSG combined expected to grow 34% at the midpoint [17] - Management remains optimistic about AI demand, with a strong backlog and pipeline supporting future growth [18][19] Other Important Information - The company returned $1.6 billion of capital to shareholders, including share repurchases and dividends [15] - The five-quarter pipeline continues to grow, indicating robust demand across various customer segments [7][19] Q&A Session Summary Question: Customer reaction to pricing discussions across product categories - Management acknowledged the unprecedented cost movements and emphasized their experience in navigating supply chain challenges [24][25] Question: Impact of NVIDIA's vertical integration on Dell's strategy - Management remains confident in their ability to differentiate and deliver complex solutions at scale, despite potential changes in the supply chain [36][37] Question: AI server margins and future expectations - AI server margins improved sequentially, with expectations for continued strength in Q4 driven by a broader customer mix [42][44] Question: Outlook on the PC refresh cycle - Management highlighted that the Windows 11 transition is not yet complete, indicating further opportunities for growth in the PC market [51][52] Question: AI business conviction and financing issues - Management expressed strong conviction in AI demand, supported by a robust backlog and pipeline across various customer types [58][60] Question: ISG margins and future guidance - ISG margins improved significantly, driven by strong demand for Dell's IP storage portfolio and pricing discipline [67][70] Question: Traditional server demand and upgrade cycle - Management noted that a significant portion of the install base consists of older generation servers, presenting opportunities for modernization [76][77]

BREAKING: Market Rallies Into HolidayDell Technologies (DELL) beat expectations for its October quarter but offered sales slightly below estimates. Dell stock rose in late trades.The Round Rock, Texas-based computer maker earned an adjusted $2.59 per share on sales of $27 billion in the quarter ended Oct. 31. Analysts polled by FactSet had expected Dell to earn $2.47 per share on sales of $27.2 billion. On a year-over-year basis, Dell's sales increased 11% while earnings rose 17%.For the current quarter, it ...

Group 1: HP Inc. Developments - HP Inc. is planning to cut between 4,000 and 6,000 jobs through fiscal year 2028 as part of a significant restructuring effort [2][7] - The company issued a weaker-than-expected profit outlook, projecting full-year earnings of $2.90 to $3.20 per share, which falls short of analyst estimates [2][7] - The challenging forecast is attributed to rising memory-chip costs, and HP aims to leverage AI tools to achieve $1 billion in annual savings [2][7] Group 2: Dell Technologies Performance - Dell Technologies has significantly increased its annual forecast for AI server shipments to $25 billion, driven by strong demand from data centers [3][7] - The company reported a strong third-quarter performance that positively impacted its share price, highlighting the contrasting fortunes between Dell and HP [3][7] Group 3: Market Trends - Financial markets are increasingly anticipating a Federal Reserve interest rate cut in December, with traders actively engaging in Fed futures [4][7] - This sentiment indicates a potential shift in monetary policy that could affect economic growth and asset valuations [4][7] Group 4: General Motors Executive Departure - General Motors announced the departure of Senior Vice President Baris Cetinok, which may indicate internal shifts or strategic realignments within the company [5][7]

HP, Inc. (NYSE:HPQ) shares fell after the company released its fourth-quarter earnings report after Tuesday's closing bell. The company also announced layoffs and issued weak forward guidance. Here's a look at the details in the report. HPQ stock is moving. Watch the price action here.The Details: HP reported quarterly earnings of 93 cents per share, which beat the analyst estimate of 92 cents.Quarterly revenue came in at $14.6 billion, which beat the Street estimate of $14.48 billion, according to data fro ...

The server maker says it's broadening its AI business to include more from neocloud, sovereign and enterprise customers ...