Market Overview - The Dow Jones Industrial Average is up 1.43%, with a 3% increase over the last three trading days, while the NASDAQ has risen approximately 4.3% in the same period [1][2] - The Russell 2000, representing small-cap stocks, has surged 7% since last Friday, indicating strong performance in this segment [2] - Health care has been a leading sector in the fourth quarter, with the XLV ETF up 2.25% today, while consumer discretionary (XLY) also saw gains of over 2% [3] Sector Performance - Seven sectors, including materials, consumer staples, industrials, financials, and communication services, are outperforming the S&P 500, with only energy and utilities showing losses [3] - The technology sector had mixed results, with Nvidia down 2.5% and AMD experiencing a larger loss of 4%, while companies like Applied Materials and Analog Devices saw gains of about 5% [4][5] Company Earnings and Projections - Dell reported Q3 adjusted EPS of $2.59, exceeding estimates of $2.47, with total net revenue of $27.01 billion, slightly below the expected $27.19 billion [26] - Dell raised its full-year revenue outlook to between $111.2 billion and $112.2 billion, driven by strong demand for AI servers [27] - HP, Inc. reported a profit outlook for the current year that misses estimates, projecting earnings of $2.90 to $3.20 per share, while also announcing job cuts of 4,000 to 6,000 by 2028 [52][54] AI and Technology Trends - The AI server market is a significant focus for Dell, with expectations of increased shipments and backlogs, as well as improved operating margins in their infrastructure unit [28][32] - The demand for AI-driven products is causing memory chip prices to rise, with expectations of a 30% increase in Q4 and an additional 20% next year [55] - HP's AIPCs (AI PCs) are gaining traction, with over 30% of their mix in Q4, surpassing the initial target of 25%, highlighting the growing adoption of AI technology in enterprise settings [64][66]

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]

Dell Technologies (NYSE:DELL) Q3 2026 Earnings Call November 25, 2025 04:30 PM ET Company ParticipantsMichael Eng - VP of Corporate DevelopmentAmit Daryanani - Senior Managing DirectorSimon Leopold - Managing DirectorJeff Clarke - COOPaul Frantz - Head of Investor RelationsDavid Kennedy - CFOErik Woodring - Managing DirectorBen Reitzes - Managing Director and Head of Technology ResearchAsiya Merchant - Technology Equity ResearchConference Call ParticipantsDavid Vogt - Managing Director and Senior Equity Ana ...

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 rose 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 - Infrastructure Solutions Group (ISG) revenue was a record $14.1 billion, up 24%, marking seven consecutive quarters of double-digit growth [13][14] - Client Solutions Group (CSG) revenue increased 3% to $12.5 billion, with commercial revenue up 5% and consumer revenue down 7% [9][14] - AI server orders reached a record $12.3 billion in the quarter, with shipments totaling $5.6 billion [6][13] Market Data and Key Metrics Changes - Demand for traditional servers grew double digits, particularly in EMEA and North America [7][14] - The backlog for AI servers ended the quarter at a record $18.4 billion, indicating strong future demand [6][13] - International growth in CSG accelerated sequentially, up double digits year-over-year [9] 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][36] - Continued emphasis on operational discipline and cash generation to drive shareholder value [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current commodity supply environment, expecting to secure supply and adjust pricing as needed [10][19] - 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][18] - Management remains optimistic about AI demand, with a strong conviction in the AI business supported by a growing backlog and pipeline [18][56] Other Important Information - The company returned $1.6 billion of capital 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 unprecedented cost increases across various components and emphasized their experience in navigating such cycles [22][25][26] Question: Impact of NVIDIA's vertical integration on AI servers - Management highlighted their differentiation in complex large-scale deployments and their ability to engage with customers early in the technology cycle [33][36] Question: AI server margins and future expectations - Management indicated that AI server margins are expected to remain in the mid-single digits, with a positive customer mix contributing to margin stability [41][42] Question: Outlook on the PC refresh cycle - Management noted that the Windows 11 transition is not complete, with significant opportunities for upgrades remaining [47][49] Question: AI business growth and financing issues - Management expressed confidence in AI demand across various customer segments, with a strong pipeline supporting future growth [55][56] Question: ISG margins and future guidance - Management reported improved ISG margins driven by strong demand for Dell IP storage and disciplined pricing [63][66] Question: Traditional server demand and upgrade cycle - Management indicated that a significant portion of the install base consists of older generation servers, presenting opportunities for modernization [70][71] Question: Commodity cost recovery and pricing strategies - Management discussed their ability to recover costs through strategic pricing and supply chain management, emphasizing their agility in response to market conditions [74][76]

Key TakeawaysHP Inc. (HPQ) announced plans to cut 4,000–6,000 jobs through fiscal year 2028 and issued a weaker profit outlook, projecting FY earnings of $2.90–$3.20 per share, missing estimates, amid rising memory-chip costs and a strategic shift towards AI tools for cost reduction, targeting $1 billion in annual savings.Dell Technologies (DELL) boosted its annual AI server shipment forecast to $25 billion, driven by exploding data-center demand, following a strong third-quarter beat that lifted its shares ...

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

N O V E M B E R 2 5 , 2 0 2 5 Q3 FY26 Performance Review 1 Copyright © Dell Inc. All Rights Reserved. Disclosures NON-GAAP FINANCIAL MEASURES This presentation includes information about non-GAAP revenue, non-GAAP gross margin, non-GAAP operating expense, non-GAAP operating income, non- GAAP interest and other, net, non-GAAP income tax, non-GAAP net income, non- GAAP net income attributable to Dell Technologies Inc., non-GAAP earnings per share - basic and non-GAAP earnings per share - diluted, as well as a ...

Core Insights - Dell reported fiscal third-quarter earnings that fell short of Wall Street revenue expectations but forecasted a stronger fourth quarter driven by increased AI sales [1][2] - The company expects fourth-quarter sales of approximately $31.5 billion, exceeding analyst estimates of $27.59 billion, and anticipates earnings per share of $3.50 compared to the expected $3.21 [1][2] Financial Performance - Dell's net income for the quarter was $1.54 billion, or $2.28 per diluted share, compared to $1.17 billion, or $1.64 per diluted share in the same period last year [2] - Overall revenue increased by 11% year-over-year, with the data center business reporting $14.11 billion in sales, aligning with analyst estimates [3][5] AI and Infrastructure - The company raised its expectations for AI server shipments to $25 billion from $20 billion and increased its full-year revenue guidance to $111.7 billion from $107 billion [2] - Dell's AI systems primarily serve large businesses, governments, and neoclouds, with significant sales driven by $5.6 billion in AI server shipments [3][5] Segment Performance - The Infrastructure Solutions Group reported $10.1 billion in server and networking sales, a 37% increase year-over-year, while the Client Solutions Group, which includes laptops and PCs, reported $12.48 billion in sales, a 3% increase but below the expected $12.65 billion [5][6] - The laptop and PC segment experienced a 7% decline year-over-year [6] Shareholder Returns - The company allocated $1.6 billion during the quarter for share repurchases and dividends [6]

Dell forecast fourth-quarter revenue and profit above Wall Street estimates on Tuesday, as increasing investments in data centers to support artificial intelligence applications boost demand for its s... ...

We're back on Morning Trade Live. We'll get a closer look at the AI infrastructure segment when Dell reports earnings after the close. This stock is down more than 20% over the last month due to margin concerns thanks to rising memory chip costs.So, Dell hit a 52- week high on November the 3rd. It's currently down 1 and a.5% ahead of this key earnings report. So, let's go inside out on Dell ahead of earnings.Joining us now is Michelle Connell, CFA, president, owner of Porsche Capital Management. Thank you s ...