Financial Highlights:Revenue: $23.9 billion (missed estimates of $24.55 billion)
Dell’s Infrastructure Solutions Group, its server division, saw a 22% rise in sales to $11.35 billion, slightly below expectations of $11.7 billion. Meanwhile, the Client Solutions Group, which includes personal computers and laptops, grew 5% to $11.88 billion, missing projections of $11.98 billion, largely due to continued weakness in the global laptop market.Corporate Moves & Financial Adjustments:
Dell’s outlook remains strong as AI demand accelerates. With a strategic focus on expanding AI infrastructure and optimizing supply chain efficiencies, the company positions itself as a key player in the evolving technology landscape.
- Earnings per Share (EPS): Adjusted $2.68 (beat expectations of $2.53)
- Projected Q1 Revenue: Between $22.5 billion and $23.5 billion (below the estimated $23.59 billion)
- Fiscal 2026 Revenue Forecast: Between $101 billion and $105 billion (aligning with LSEG’s estimate of $103.17 billion)
- Full-year EPS Projection: $9.30 (exceeding the $9.23 estimate)
Dell’s Infrastructure Solutions Group, its server division, saw a 22% rise in sales to $11.35 billion, slightly below expectations of $11.7 billion. Meanwhile, the Client Solutions Group, which includes personal computers and laptops, grew 5% to $11.88 billion, missing projections of $11.98 billion, largely due to continued weakness in the global laptop market.Corporate Moves & Financial Adjustments:
- Dell raised its dividend by 18% and authorized a $10 billion share repurchase program to return value to shareholders.
- Net income increased to $1.53 billion ($2.15 per share) from $1.21 billion ($1.66 per share) in the previous year.
- The company discovered that some suppliers had improperly recorded credits, impacting the Client Solutions Group segment. This resulted in an overstatement of the cost of goods sold by $200 million in fiscal 2024 and $148 million for the first nine months of fiscal 2025. However, Dell stated the issue was not material and restated its financials accordingly.
Dell’s outlook remains strong as AI demand accelerates. With a strategic focus on expanding AI infrastructure and optimizing supply chain efficiencies, the company positions itself as a key player in the evolving technology landscape.
