The Dell Technologies logo will be on display at the International Broadcasting Conference (IBC2025) on September 12, 2025 in Amsterdam, Netherlands.
Michelle Polo | Getty Images
Dell reported third-quarter results on Tuesday that fell short of Wall Street’s revenue expectations, but the company expected its fourth quarter to beat expectations due to increased AI sales.
Dell stock rose 5% in extended trading.
Here are the del results for the LSEG consensus estimate:
EPS: $2.59 adjusted vs. $2.47 estimated Revenue: $27.01 billion vs. $27.13 billion estimated
Dell said it expects fourth-quarter revenue to be about $31.5 billion, compared to analyst expectations of $27.59 billion. The company said it expects fourth-quarter earnings per share to be $3.50, compared to expectations of $3.21.
The company announced that it is raising its forecast for AI server shipments this year from $20 billion to $25 billion, and also raised its full-year revenue forecast from $107 billion to $111.7 billion.
Dell reported net income for the quarter of $1.54 billion, or $2.28 per diluted share. This compares to $1.17 billion, or $1.64 a share, in the same period last year.
The company is a key leader in the health of the AI infrastructure industry. Nvidia’s graphics processor. Overall revenue for the quarter increased 11% annually.
The main customers for Dell’s artificial intelligence systems are large enterprises, governments, and so-called neo-clouds such as: coreweave. Dell is cutting back on sales to big cloud companies, known as hyperscalers, which have historically been the most voracious buyers of Nvidia.
The company expects to sell $9.4 billion in AI servers in the fourth quarter, but that doesn’t include a deal announced in November to sell Nvidia-based GB300 systems to neocloud’s Iren. microsoft.
Dell’s data center business, known as the Infrastructure Solutions Group, had revenue of $14.11 billion, in line with analyst expectations. Of this, $10.1 billion was for servers and network components, an increase of 37% on an annual basis. Much of this increase was driven by $5.6 billion in AI server shipments. Dell said it sold $4 billion of storage equipment during the quarter.
But the company said its laptop and PC business, known as Client Solutions Group, had revenue of $12.48 billion, up 3% from a year ago but slightly below analysts’ expectations of $12.65 billion.
Dell’s laptop and PC business was particularly hard hit, declining 7% on an annual basis.
The company said it spent $1.6 billion on stock buybacks and dividends during the quarter.
WATCH: AI story is shifting to Google with complete stack, says Plexo Capital’s Lo Toney
