Q3 2026 Dell Technologies Inc Earnings Call Transcript
Key Points
- Dell Technologies Inc (DELL) reported a record third quarter with total revenue reaching $27 billion, up 11% year-over-year.
- The company achieved an all-time high in AI server orders, with $12.3 billion in orders for the quarter, bringing year-to-date orders to $30 billion.
- EPS increased by 17% to $2.59, driven by improved profitability in AI and storage, and continued operational scaling.
- Dell Technologies Inc (DELL) saw strong demand for its Dell IP storage portfolio, with PowerStore experiencing seven consecutive quarters of growth.
- The company returned $1.6 billion of capital to shareholders, including share repurchases and dividends, demonstrating strong cash generation and capital return.
- Consumer revenue declined by 7%, although demand showed signs of growth as the company refocused its market strategy.
- Storage revenue decreased by 1% year-over-year, despite strong demand for certain Dell IP products.
- The company faces challenges with rising commodity costs, particularly in DRAM, NAND, and hard drives, which could impact future pricing and profitability.
- Dell Technologies Inc (DELL) noted that the PC refresh cycle is ongoing, with a significant portion of systems not yet upgraded to Windows 11, indicating potential future demand but also current market saturation.
- The company is navigating a complex supply chain environment, with a focus on securing parts and managing costs amid unprecedented demand and supply constraints.
Please stand by. Good afternoon, and welcome to the fiscal year 2026 third-quarter financial results conference call for Dell Technologies, Inc. I'd like to inform all participants this call is being recorded at the request of Dell Technologies. This broadcast is a copyrighted property of Dell Technologies, Inc. Any rebroadcast of this information in whole or part without the prior written permission of Dell Technologies is prohibited. (Operator Instructions)
I'd now like to turn the call over to Paul Frantz, Head of Investor Relations. Mr. Frantz, you may begin.
Thanks, everyone, for joining us. With me today are Jeff Clarke, David Kennedy, and Howard Johnson. Our earnings materials are available on our IR website, and I encourage you to review these materials. Also, please take some time to review the presentation, which includes additional content to complement our discussion this afternoon. Guidance will be covered on today's call.
During this call, unless otherwise indicated
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