ROUND ROCK – Dell Technologies (NYSE: DELL) announced financial results for its fiscal 2026 third quarter and provides guidance for its fiscal 2026 fourth quarter and full year. The company also names David Kennedy its chief financial officer on a permanent basis.
Third-Quarter Summary
- Record third-quarter revenue of $27.0 billion, up 11% year over year
- Diluted earnings per share (EPS) of $2.28, up 39% year over year, and record third-quarter non-GAAP diluted EPS of $2.59, up 17%
- Cash flow from operations of $1.2 billion
“In the third quarter we delivered record Q3 revenue of $27 billion, record Q3 profitability, strong cash generation and above-trend capital return of $1.6 billion,” said David Kennedy, chief financial officer, Dell Technologies. “FY26 will be another record year, and we’re raising our AI shipment guidance to roughly $25 billion, up over 150% year over year, and revenue guidance to $111.7 billion, up 17%.”
“AI momentum is accelerating in the second half of the year, leading to record AI server orders of $12.3 billion and an unprecedented $30 billion in orders year to date,” said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. “Our five-quarter pipeline is multiples of our $18.4 billion backlog with a mix of neocloud, sovereign and enterprise customers. Dell is winning in AI because of our unique ability to engineer bespoke high-performance solutions, rapidly deploy large, complex clusters, and provide global support.”
Infrastructure Solutions Group (ISG)
- Record third-quarter revenue: $14.1 billion, up 24% year over year
- Record third-quarter Servers and Networking revenue: $10.1 billion, up 37%
- Storage revenue: $4.0 billion, down 1%
- Record third-quarter operating income: $1.7 billion, up 16% year over year
Client Solutions Group (CSG)
- Revenue: $12.5 billion, up 3% year over year
- Commercial Client revenue: $10.6 billion, up 5%
- Consumer revenue: $1.9 billion, down 7%
- Operating income: $748 million, flat year over year
Capital Return
Dell Technologies returned $1.6 billion to shareholders in the third quarter through share repurchases and dividends. Year to date, the company has returned $5.3 billion to shareholders and repurchased over 39 million shares.
Guidance Summary
- Full-year FY26 revenue expected between $111.2 billion and $112.2 billion, up 17% year over year at the midpoint of $111.7 billion
- Full-year AI server shipments expected to be roughly $25 billion, up over 150%
- Full-year FY26 GAAP diluted EPS expected to be $8.38 at the midpoint, up 31% year over year, and non-GAAP diluted EPS to be $9.92 at the midpoint, up 22%
- Fourth-quarter FY26 revenue expected between $31.0 billion and $32.0 billion, up 32% year over year at the midpoint of $31.5 billion
- Fourth-quarter FY26 GAAP diluted EPS expected to be $3.05 at the midpoint, up 42% year over year, and non-GAAP diluted EPS to be $3.50 at the midpoint, up 31%