Dell Technologies has reported a net income of $1.54bn for the third quarter of fiscal 2026 (FY 2026), representing a 32% increase compared to the $1.17bn posted in the same period last year.

Net revenue for the reported quarter ended 31 October 2025 reached $27bn, up 11% from $24.3bn in Q3 FY25. Dell Technologies said that this increase was driven by AI server shipments of $5.6bn.

The company’s diluted earnings per share stood at $2.28, a 39% year-on-year increase, while non-GAAP diluted EPS reached a record $2.59, up 17%.

Cash flow from operations was reported at $1.2bn.

Infrastructure Solutions Group (ISG) delivered third-quarter revenue of $14.1bn, which is a 24% year-over-year increase.

Within ISG, Servers and Networking revenue grew 37% to $10.1bn, while storage revenue declined 1% to nearly $4bn. ISG operating income reached $1.7bn, up 16% on the year.

Client Solutions Group (CSG) brought in revenue of $12.5bn, an increase of 3%. Commercial client revenue rose by 5% to $10.6bn, while consumer revenue dropped by 7% to $1.9bn.

The operating income of CSG remained flat year over year at $748m.

During the quarter, Dell Technologies returned $1.6bn to shareholders through share buybacks and dividends. Since the beginning of the fiscal year, total capital returned reached $5.3bn with more than 39 million shares repurchased.

Dell Technologies vice chairman and chief operating officer Jeff Clarke said: “AI momentum is accelerating in the second half of the year, leading to record AI server orders of $12.3bn and an unprecedented $30bn in orders year to date.

“Our five-quarter pipeline is multiples of our $18.4bn 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 forward, Dell forecasts full-year fiscal 2026 revenue between $111.2bn and $112.2bn, up 17% at the midpoint versus last year.

AI server shipments for the year are estimated at around $25bn, which would be an increase of more than 150%.

The company projects GAAP diluted EPS for FY26 at $8.38 at the midpoint, up 31%, and non-GAAP diluted EPS at $9.92, up 22%.

For the fourth quarter of FY26, expected revenue is set between $31bn and $32bn with midpoint growth of 32%. Projected GAAP diluted EPS is $3.05 and non-GAAP diluted EPS is $3.50 at their respective midpoints.

Dell Technologies chief financial officer David Kennedy said: “In the third quarter we delivered record Q3 revenue of $27bn, record Q3 profitability, strong cash generation and above-trend capital return of $1.6bn.

“FY26 will be another record year, and we’re raising our AI shipment guidance to roughly $25bn, up over 150% year over year, and revenue guidance to $111.7bn, up 17%.”