PC maker Dell's Q3 revenue slightly misses estimates

Overview

• Dell fiscal Q3 revenue slightly missed analyst expectations

• Adjusted EPS for fiscal Q3 beats consensus, reflecting strong operational performance

• Company names David Kennedy as permanent CFO

Outlook

• Dell expects full-year FY26 revenue between $111.2 bln and $112.2 bln

• Company forecasts full-year AI server shipments at roughly $25 bln

• Dell anticipates fourth-quarter FY26 revenue between $31.0 bln and $32.0 bln

Result Drivers

• AI MOMENTUM - Record AI server orders of $12.3 bln and a five-qtr pipeline contributing to revenue growth, per COO Jeff Clarke

• ISG GROWTH - Infrastructure Solutions Group revenue rose 24% to $14.1 bln, driven by servers and networking, up 37%

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the computer hardware peer group is "buy"

• Wall Street's median 12-month price target for Dell Technologies Inc is $160.00, about 20.5% above its November 24 closing price of $127.22

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw4f8V6Pa

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