Dell Technologies (DELL) Q3 2026 Financial Results Summary
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Dell Technologies (DELL) Q3 2026 Financial Results Summary
Dell Technologies released its financial results for the third quarter of fiscal 2026 on November 25, 2025. The report highlights the company’s performance, including revenue growth and substantial earnings.
Key Financial Metrics
- Revenue:
- Record third-quarter revenue of $27.0 billion, an 11% increase year over year.
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Year-to-date revenue stands at $80.2 billion, reflecting a 12% growth from the previous year.
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Earnings Per Share (EPS):
- Diluted EPS of $2.28, up 39% compared to $1.64 a year ago.
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Record third-quarter non-GAAP diluted EPS of $2.59, up 17% from $2.21 a year prior.
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Cash Flow:
- Cash flow from operations totaled $1.2 billion.
- Year-to-date cash flow from operations reached $6.5 billion, a 65% increase from last year’s $3.9 billion.
Segment Performance
Infrastructure Solutions Group (ISG)
- ISG revenue for the third quarter was $14.1 billion, representing a 24% year-over-year growth.
- Record revenue in the Servers and Networking sector at $10.1 billion, a significant 37% increase.
- Storage revenue dipped slightly to $4.0 billion, a 1% decrease.
Client Solutions Group (CSG)
- CSG revenue stood at $12.5 billion, growing 3% year over year.
- Commercial Client revenue reached $10.6 billion, a 5% increase, while Consumer revenue was $1.9 billion, showing a 7% decline.
- Operating income was $748 million, remaining flat compared to the previous year.
Capital Return
- Dell Technologies returned $1.6 billion to shareholders during Q3 through share repurchases and dividends.
- For the year to date, the company has returned $5.3 billion to shareholders, having repurchased over 39 million shares.
Guidance
- For the full fiscal year 2026, revenue is anticipated to range between $111.2 billion and $112.2 billion, marking an expected 17% growth year over year.
- AI server shipments are projected to approach $25 billion, a staggering increase of over 150% year over year.
- Full-year GAAP diluted EPS is expected to be $8.38, a 31% rise year over year, while non-GAAP diluted EPS is expected at $9.92, representing a 22% increase.
- For the fourth quarter of FY26, revenue projections are between $31.0 billion and $32.0 billion, up 32% at the midpoint.
Additional Financial Highlights
- Operating Income:
- Overall operating income in Q3 was $2.1 billion, a 23% increase from $1.7 billion.
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Year-to-date operating income stands at $5.1 billion, up 24% from last year’s $4.1 billion.
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Net Income:
- Q3 net income reached $1.6 billion, a 32% increase from $1.2 billion a year ago.
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Year-to-date net income is $3.7 billion, reflecting a 21% rise from the same point last year.
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Adjusted Free Cash Flow:
- Q3 adjusted free cash flow reached $1.67 billion, an impressive 133% increase year over year.
Conclusion
The strong performance across key financial metrics indicates that Dell Technologies is capitalizing on growth opportunities, particularly in AI solutions and robust cash generation. The company’s strategic focus on expanding its AI capabilities and enhancing shareholder returns demonstrates its commitment to long-term growth and profitability.
| (in millions, except percentages; unaudited) | Three Months Ended | Nine Months Ended | ||||
|---|---|---|---|---|---|---|
| October 31, 2025 | November 1, 2024 | Change | October 31, 2025 | November 1, 2024 | Change | |
| Net revenue: | ||||||
| Products | $21,255 | $18,290 | 16% | $62,789 | $53,371 | 18% |
| Services | $5,750 | $6,076 | (5)% | $17,370 | $18,265 | (5)% |
| Total net revenue | $27,005 | $24,366 | 11% | $80,159 | $71,636 | 12% |
| Cost of net revenue: | ||||||
| Products | $18,279 | $15,488 | 18% | $54,439 | $45,238 | 20% |
| Services | $3,133 | $3,518 | (11)% | $9,743 | $10,826 | (10)% |
| Total cost of net revenue | $21,412 | $19,006 | 13% | $64,182 | $56,064 | 14% |
| Gross margin | $5,593 | $5,360 | 4% | $15,977 | $15,572 | 3% |
| Operating expenses: | ||||||
| Selling, general, and administrative | $2,722 | $2,894 | (6)% | $8,575 | $9,206 | (7)% |
| Research and development | $752 | $745 | 1% | $2,345 | $2,288 | 2% |
| Total operating expenses | $3,474 | $3,639 | (5)% | $10,920 | $11,494 | (5)% |
| Operating income | $2,119 | $1,721 | 23% | $5,057 | $4,078 | 24% |
| Interest and other, net | -$178 | -$276 | 36% | -$593 | -$1,002 | 41% |
| Income before income taxes | $1,941 | $1,445 | 34% | $4,464 | $3,076 | 45% |
| Income tax expense | $393 | $275 | 43% | $787 | $32 | NM |
| Net income | $1,548 | $1,170 | 32% | $3,677 | $3,044 | 21% |
| Less: Net loss attributable to non-controlling interests | $0 | -$5 | 100% | $0 | -$15 | 100% |
| Net income attributable to Dell Technologies Inc. | $1,548 | $1,175 | 32% | $3,677 | $3,059 | 20% |
| Percentage of Total Net Revenue: | ||||||
| Gross margin | 20.7% | 22.0% | 19.9% | 21.7% | ||
| Selling, general, and administrative | 10.1% | 11.9% | 10.7% | 12.8% | ||
| Research and development | 2.8% | 3.1% | 2.9% | 3.2% | ||
| Operating expenses | 12.9% | 15.0% | 13.6% | 16.0% | ||
| Operating income | 7.8% | 7.1% | 6.3% | 5.7% | ||
| Income before income taxes | 7.2% | 5.9% | 5.6% | 4.3% | ||
| Net income | 5.7% | 4.8% | 4.6% | 4.2% | ||
| Income tax rate | 20.2% | 19.0% | 17.6% | 1.0% |
| (in millions; unaudited) | October 31, 2025 | January 31, 2025 |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $9,569 | $3,633 |
| Accounts receivable, net of allowance of $75 and $63 | $11,721 | $10,298 |
| Short-term financing receivables, net of allowance of $96 and $78 | $6,427 | $5,304 |
| Inventories | $6,949 | $6,716 |
| Other current assets | $8,436 | $9,610 |
| Current assets held for sale | $0 | $668 |
| Total current assets | $43,102 | $36,229 |
| Property, plant, and equipment, net | $6,538 | $6,336 |
| Long-term investments | $1,760 | $1,496 |
| Long-term financing receivables, net of allowance of $81 and $75 | $6,725 | $5,927 |
| Goodwill | $19,358 | $19,120 |
| Intangible assets, net | $4,628 | $4,988 |
| Other non-current assets | $5,368 | $5,650 |
| Total assets | $87,479 | $79,746 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Short-term debt | $7,394 | $5,204 |
| Accounts payable | $23,794 | $20,832 |
| Accrued and other | $6,679 | $6,597 |
| Short-term deferred revenue | $12,649 | $13,673 |
| Current liabilities held for sale | $0 | $221 |
| Total current liabilities | $50,516 | $46,527 |
| Long-term debt | $23,849 | $19,363 |
| Long-term deferred revenue | $12,459 | $12,292 |
| Other non-current liabilities | $3,275 | $2,951 |
| Total liabilities | $90,099 | $81,133 |
| Stockholders’ equity (deficit): | ||
| Common stock and capital in excess of $0.01 par value | $9,279 | $9,119 |
| Treasury stock at cost | -$12,665 | -$8,502 |
| Retained earnings (accumulated deficit) | $1,420 | -$1,160 |
| Accumulated other comprehensive loss | -$654 | -$939 |
| Total Dell Technologies Inc. stockholders’ equity (deficit) | -$2,620 | -$1,482 |
| Non-controlling interests | $0 | $95 |
| Total stockholders’ equity (deficit) | -$2,620 | -$1,387 |
| Total liabilities and stockholders’ equity | $87,479 | $79,746 |