Dell Revenues Up 11 Percent to $27 Billion in Quarter

Dell reported better than expected revenues in the quarter ending October 31 thanks to its AI infrastructure business. Net income was $1.5 billion on revenues of $27 billion, the latter of which was a record for the company. And those figures represent gains of 32 percent and 11 percent, respectively year-over-year (YOY).

“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,” Dell vice chairman and chief operating officer Jeff Clarke said. “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.”

Dell’s Infrastructure Solutions Group (ISG) is its biggest, and it recorded a record $14.1 billion in revenues in the quarter, up 24 percent YOY with a record $10.1 billion in revenues from Servers and Networking, up 37 percent YOY. Storage contributed another $4 billion in revenues, down 1 percent YOY. ISG operating income was $1.7 billion, up 16 percent YOY.

Dell’s Client Solutions Group (CSG) added another $12.5 billion in revenues, up 3 percent YOY. $10.6 billion of that came from commercial PC sales, for a gain of 5 percent YOY, while the remaining $1.9 billion came from consumer PC sales, down 7 percent. DSG operating income was $748 million and flat with the prior year.

Dell said that interim CFO David Kennedy would assume that role full time now.

“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,” Mr. Kennedy said of the quarter. “FY26 will be another record year, and we’re raising our AI shipment guidance to roughly $25 billion, up over 150 percent year over year, and revenue guidance to $111.7 billion, up 17 percent.”