Dell Earnings Raise Outlook on AI Server Demand

Dell earnings raised FY2026 revenue guidance on stronger AI server demand, signaling firmer data-center spending and trader focus on AI infrastructure

November 25, 2025·2 min read
View all news articles
Flat vector of a server rack unfurling compute modules showing AI server demand tied to Dell earnings and data-center growth.

KEY TAKEAWAYS

  • Raised FY2026 revenue guidance to $111.2-$112.2 billion after a stronger quarter.
  • AI server sales were $9.4 billion and ISG revenue rose to $16.8 billion.
  • FY2026 AI shipment guidance lifted to $20.0 billion with a $14.4 billion backlog.

HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX

Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.

Or subscribe with

Dell Technologies said in a press release on Nov. 25 that its earnings signaled stronger growth as demand for servers supporting artificial intelligence prompted the company to raise its full-year outlook, reflecting accelerating data-center investment.

Third Quarter Results and AI Server Growth

Dell reported third-quarter fiscal 2026 revenue of $27.0 billion, an 11.0% increase year over year, with non-GAAP diluted earnings per share rising 39.0% to $2.59. The company raised its full-year revenue guidance to $111.2 billion–$112.2 billion from $105 billion–$109 billion and named David Kennedy as permanent chief financial officer. The press release said, “Our third quarter results reflect strong demand for our AI infrastructure solutions, and we are raising our full-year outlook.”

AI server sales in the quarter totaled $9.4 billion. Shipments in the first half of fiscal 2026 reached $10.0 billion, surpassing the entire total for fiscal 2025. The AI server backlog stands at $14.4 billion. Dell’s Infrastructure Solutions Group (ISG) posted third-quarter revenue of $16.8 billion, a 69.0% year-over-year gain. The company also raised its AI server shipment guidance for fiscal 2026 to $20.0 billion. These figures indicate a multiquarter demand cycle for AI-focused infrastructure and provide greater near-term revenue visibility.

Margins and Profitability Outlook

Gross margin in the quarter was 18.7%, down from 22.0% a year earlier, reflecting higher AI server costs and memory pricing. ISG operating margin declined to 8.8% from 11.0% in the prior year’s third quarter. Dell expects ISG operating margin to recover to 12.0% by the end of fiscal 2026, driven by scale efficiencies and a shift toward enterprise customers. The company’s ability to convert elevated AI volume into margin improvement will test whether scale and customer mix can offset near-term cost pressures as it expands its AI server business.

HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX

Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.

Or subscribe with

Read other top news stories

Amazon Earnings Volatile After Capex Jump

Amazon Earnings Volatile After Capex Jump

Amazon earnings Q4 revenue beat, a narrow EPS miss and $200 billion 2026 capex triggered extended-session volatility and renewed free cash flow concerns.

Estée Lauder Q2 Results Raise Forecast Despite Tariffs

Estée Lauder Q2 Results Raise Forecast Despite Tariffs

Estée Lauder Q2 Results beat estimates and lifted FY2026 guidance but a $100 million tariff headwind and higher consumer investments could temper momentum.

NIO First Profit Signals Q4 Turnaround

NIO First Profit Signals Q4 Turnaround

NIO first profit alert shows an adjusted operating profit of US$100M-US$172M for Q4 2025 and forces traders to weigh durability before mid-March results.

January 2026 Layoffs Rise Sharply

January 2026 Layoffs Rise Sharply

January 2026 layoffs surged per the Challenger report as UPS and Amazon cuts led, and weaker hiring plans could pressure transportation and tech stocks.

Cardinal Health Earnings Rise on Specialty Demand

Cardinal Health Earnings Rise on Specialty Demand

Cardinal Health earnings showed a stronger Q2 and a raised FY2026 non-GAAP EPS outlook, which could prompt repositioning and higher trading flows.

Rio Tinto Glencore Merger Talks End Over Price Dispute

Rio Tinto Glencore Merger Talks End Over Price Dispute

Rio Tinto Glencore merger collapsed after valuation and leadership disputes, pushing Glencore lower and raising governance and UK takeover rules risk.