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]

Core Insights - Dell Technologies raised its full-year earnings forecast and provided a stronger-than-expected forecast for the current quarter, leading to a rise in shares during extended trading [1] - The company expects adjusted earnings per share of $2.25 for the current quarter, with revenue projected between $28.5 billion and $29.5 billion, significantly exceeding LSEG expectations [1][2] - Dell's adjusted earnings per share fell short of LSEG estimates despite in-line revenue [1] Financial Performance - Dell anticipates approximately $103 billion in revenue for the full year, aligning with LSEG expectations, while raising its full-year adjusted earnings forecast to $9.40, a 10 cent increase from previous guidance [2] - The company reported a 5% annual revenue growth and expects an 8% growth during the fiscal year [5] - Dell's Infrastructure Solutions Group generated $10.3 billion in sales during the quarter, a 12% increase, with $6.3 billion from servers and networking [5] AI Systems Demand - Dell attributes its strong guidance to $7 billion in artificial intelligence systems expected to ship during the quarter, which are higher-margin products [2] - The company has $14.4 billion in confirmed orders for AI systems in its backlog, with $12.1 billion recorded in the first quarter [4] - Dell is experiencing "unprecedented demand" for AI systems, particularly from second-tier cloud providers [3] Shareholder Returns - Dell significantly increased its shareholder capital return, spending $2.4 billion on share repurchases and dividends during the quarter [6] - For the entirety of fiscal 2025, Dell spent $2.58 billion on share repurchases [6]