Dell Technologies (DELL) reported mixed results for the third quarter of Fiscal 2026. However, the company raised its AI shipment and revenue guidance for Fiscal 2026, which indicates that the technology company expects to benefit from the booming AI demand. Following the release, DELL stock was up about 3% in after-hours trading.
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The technology company reported record revenue of $27 billion, up 11% year over year, but slightly missed the Street’s expectations of $27.13 billion. Meanwhile, the company saw a 17% increase in adjusted EPS to $2.59, which beat the consensus estimate of $2.47.
Highlighting Dell’s AI strength, Jeff Clarke, vice chairman and COO, said, “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. Our five-quarter pipeline is multiples of our $18.4 billion backlog with a mix of neocloud, sovereign and enterprise customers.”
Alongside earnings, the company also announced David Kennedy as its permanent chief financial officer.
Full-Year and Q4 Guidance
Dell now expects Fiscal 2026 revenue between $111.2 billion and $112.2 billion, with a midpoint of $111.7 billion, representing 17% growth. Full-year AI server shipments are expected to be about $25 billion, up over 150%.
Also, the full-year adjusted EPS outlook has been raised to $9.92 at the midpoint, up from $9.55 previously. Analysts currently expect $108.04 billion in revenues and $9.53 in adjusted EPS.
For the fourth quarter, Dell forecasts revenue between $31 billion and $32 billion, and adjusted EPS of $3.50 at the midpoint, reflecting continued momentum in AI and enterprise infrastructure. The analysts’ expectations currently stand at $27.67 billion in revenues and $3.21 in adjusted EPS.
Is DELL a Good Stock to Buy Now?
Turning to Wall Street, DELL stock has a Moderate Buy consensus rating based on 12 Buys, four Holds, and one Sell assigned in the last three months. At $167.14, the average Dell stock price target implies a 32.34% upside potential.
However, it’s worth noting that estimates will likely change following today’s earnings report.
