Dell reported its fiscal third-quarter earnings on Tuesday, revealing revenue that fell short of Wall Street’s expectations, but it projected a stronger-than-anticipated fourth quarter fueled by increased AI sales. Following the announcement, Dell shares rose 5% in extended trading. Here’s how Dell’s results compared to LSEG consensus estimates: - EPS: $2. 59 adjusted versus $2. 47 estimated - Revenue: $27. 01 billion versus $27. 13 billion estimated Dell expects approximately $31. 5 billion in sales for the fourth quarter, compared to the $27. 59 billion analysts forecasted. The company also anticipates fourth-quarter earnings per share of $3. 50, exceeding the $3. 21 expected. The firm raised its projection for AI server shipments this year to $25 billion, up from a prior estimate of $20 billion, and increased its full-year revenue guidance to $111. 7 billion from $107 billion. During the quarter, Dell reported net income of $1. 54 billion, or $2. 28 per diluted share, versus $1. 17 billion, or $1. 64 per share, in the same period last year. As a key indicator of AI infrastructure health, Dell is among the leading suppliers of systems based on Nvidia’s graphics processors. Overall revenue rose 11% year-over-year in the quarter. Dell’s primary customers for AI systems include large enterprises, governments, and so-called neoclouds like CoreWeave.

It sells less to major cloud providers, often known as hyperscalers, who have been Nvidia’s biggest buyers to date. The company expects to sell $9. 4 billion worth of AI servers in the fourth quarter, a figure that excludes a November deal to provide Nvidia-based GB300 systems to Iren, a neocloud planning to rent them out to Microsoft. Dell’s data center business, the Infrastructure Solutions Group, posted $14. 11 billion in sales, matching analyst expectations. Of this, $10. 1 billion came from servers and networking components, up 37% year-over-year, primarily driven by $5. 6 billion in AI server shipments. Additionally, Dell sold $4 billion in storage equipment during the quarter. Conversely, Dell’s laptop and PC division, the Client Solutions Group, reported $12. 48 billion in sales, a 3% increase year-over-year but slightly below analysts’ forecast of $12. 65 billion. The laptop and PC business faced challenges, with a 7% annual decline noted. During the quarter, Dell spent $1. 6 billion on share repurchases and dividends.