Dell gives upbeat Q4 guidance, beats on Q3 earnings
Q3 revenue was a little light, but shares are trading higher early on Thursday as investors digest the strong Q4 outlook.
Dell reported Q3 earnings after the close of trading Tuesday, with the stock trading up as much as 5.9% in early trading on Wednesday.
The PC, data storage, and server maker reported:
Q3 non-GAAP diluted earnings per share of $2.59 vs. Wall Street expectations for $2.47.
Q3 sales of $27.01 billion vs. estimates for $27.15 billion.
Q4 EPS guidance of $3.50 at the midpoint vs. expectations of $3.21.
Q4 sales guidance of $31.5 billion at the midpoint vs. expectations for $27.58 billion.
Full-year sales guidance of $111.7 billion at the midpoint vs. expectations for $107.86 billion.
Dell’s ability to align its server and networking division with investor enthusiasm for all things AI has helped it claw its way out of a deep hole earlier this year. (It was down roughly 40% amid the Liberation Day tariff panic back in April.)
But the company’s steady climb back into positive territory has stalled out recently, on growing concern that the scramble for key components the server maker needs — like memory chips — would boost costs and crimp margins. Dell ended Tuesday up 9.3% for the year.
