Dell Technologies (DELL) shares rose 1% in extended trading on Tuesday after the IT and PC giant reported fiscal third-quarter results and raised its full-year sales forecast, aided in part by artificial intelligence servers.
For fiscal 2026, Dell now expects revenue to be between $111.2B and $112.2B, up 17% year-over-year at the midpoint of $111.7B, an increase from the prior range of $105B to $109B. Included in that is $25B from AI servers, up from a prior view of $20B in revenue.
Analysts had expected $107.94B in full-year sales.
“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,” said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies, in a statement. “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.”
Looking to the fourth-quarter, Dell expects revenue between $31B and $32B, well above the $27.64B analysts were expecting. Adjusted earnings are expected to be $3.50 per share at the midpoint. Analysts were anticipating $3.31 in adjusted earnings per share.
The strong guidance comes after Dell reported better-than-expected results for the fiscal third-quarter, ended Oct. 31.
Dell said it earned an adjusted $2.59 per share as revenue rose 11% year-over-year to come in at $27.01B. Of the company’s two units, Client Solutions Group generated $12.48B in revenue, up 2.9% year-over-year. Dell’s Infrastructure Solutions Group, which houses its AI servers, delivered $14.11B in revenue for the quarter, up 24% year-over-year. Included in that was a 37% rise in servers and networking revenue at $10.13B.
Analysts were anticipating adjusted earnings of $2.47 per share on $27.19B in revenue.
Dell Technologies added that it returned $1.6B to shareholders in the period, via share repurchases and dividend.
The company will host a conference call at 4:30 p.m. EST to discuss the results.