Dell reports record revenue driven by booming AI server demand and raises full-year outlook

Dell Technologies has announced its third-quarter fiscal 2026 results, revealing record revenues of $27.01 billion driven by surging demand for AI infrastructure, alongside an upgraded full-year outlook signalling confidence in its strategic expansion into AI and enterprise solutions.

Dell Technologies has reported impressive financial results and raised its full-year outlook, driven primarily by surging demand for AI servers and infrastructure. In its third-quarter fiscal 2026 results, the company posted record revenue of $27.01 billion, marking an 11% increase from the previous year, alongside a net income of $1.55 billion, a 32% rise. Operating income also grew by 23% to $2.12 billion. Reflecting its confidence in ongoing growth, Dell announced a 20% increase in its annual cash dividend to $1.78 per share, signalling a commitment to shareholder returns.

Central to Dell’s growth trajectory is its booming AI server business, highlighted by a record $12.3 billion AI server order backlog at the end of the third quarter, with shipments reaching $5.6 billion for that period. The company now forecasts AI server revenue of $25 billion for fiscal 2026, up from an earlier estimate of $20 billion. This surge in demand has been fuelled by major contracts with key clients, including the U.S. Department of Energy, Abu Dhabi’s G42, Elon Musk’s AI startup xAI, and CoreWeave. Dell’s expanding partnerships in AI and supercomputing, particularly involving Nvidia’s advanced chips, underline the strategic role of AI in the company’s business model.

Recent product innovations support Dell’s AI push, as unveiled at the SC25 supercomputing conference. The introduction of specialized AI-optimised servers powered by AMD and Intel, alongside high-capacity networking switches, enhances Dell’s data centre capabilities tailored for AI workloads. Additionally, the expansion of the Dell AI Factory, integrating Nvidia’s hardware and software frameworks, aims to improve automation and performance for enterprise AI applications. These advances demonstrate Dell’s intent to differentiate itself in high-value enterprise segments, enhancing revenue visibility and margin potential despite challenges in other hardware areas.

However, the company still faces margin pressure, notably in legacy hardware segments where commoditisation and cyclical PC sales dampen profitability. While Dell forecasts strong long-term growth, with revenue expected to reach $122 billion and earnings to hit $7.4 billion by 2028, this requires sustained growth of around 6.4% annually and a significant increase in earnings from current levels. The PC segment is expected to grow modestly at around 1% per year, mainly driven by commercial systems rather than consumer demand.

Analysts caution that rising costs for memory and components, as well as competitive pressures and geopolitical factors, could strain margins. For instance, securing high-end Nvidia GPUs remains challenging due to supply constraints focused on hyperscalers. Despite these hurdles, Dell’s operational scale offers leverage, potentially enabling price adjustments to offset increased costs.

Investor sentiment varies widely, with Dell share price targets from community analysts ranging between $112 and $222 per share, reflecting differing views on its ability to balance AI-driven growth with margin management. Dell’s commitment to increasing its dividend by at least 10% annually through 2030 further signals confidence in its financial strength.

Overall, Dell Technologies presents a compelling investment narrative anchored in the accelerating AI infrastructure market. Its recent financial performance and strategic product innovations highlight a company adapting successfully to new technology demands, albeit with ongoing challenges in legacy businesses and cost pressures. Investors are advised to weigh these factors carefully and consider multiple perspectives before forming a conclusion on Dell’s future prospects.

📌 Reference Map:

• ^[1] (Simply Wall St) – Paragraphs 1, 4, 6, 7
• ^[2] (Reuters) – Paragraphs 2, 3, 5, 6
• ^[3] (Dell Press Release) – Paragraph 1
• ^[4] (Reuters) – Paragraphs 2, 5
• ^[5] (Tom’s Hardware) – Paragraphs 4, 7
• ^[6] (IT Pro) – Paragraph 3
• ^[7] (AP News) – Paragraph 1

Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
8

Notes:
The narrative presents recent financial results from Dell Technologies, including a record $27.01 billion revenue and a 32% increase in net income. The earliest known publication date of similar content is November 25, 2025, with a Reuters article titled ‘Dell bets on rising AI server demand to forecast higher growth’ . The report is based on Dell’s official press release from November 25, 2025 , which typically warrants a high freshness score. However, the Simply Wall St article from November 28, 2025 republishes content from the Reuters article, indicating recycled material. The narrative includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged.

Quotes check

Score:
7

Notes:
The narrative includes direct quotes from Dell’s Chief Operating Officer Jeff Clarke, such as ‘We’re in a very unique time. It’s unprecedented. We have not seen costs move at the rate we’ve seen.’ These quotes are also present in the Reuters article from November 25, 2025 , indicating potential reuse. The wording matches exactly, suggesting the quotes are not original to the narrative.

Source reliability

Score:
9

Notes:
The narrative originates from Dell Technologies’ official press release, a reputable organisation. The Reuters article is also from a reputable organisation. However, the Simply Wall St article is from an obscure, unverifiable, or single-outlet narrative, which introduces some uncertainty.

Plausability check

Score:
8

Notes:
The narrative’s claims about Dell’s financial performance and AI server demand are plausible and align with recent industry trends. The Reuters article from November 25, 2025 corroborates these claims. The narrative lacks specific factual anchors, such as names, institutions, and dates, which reduces the score and flags it as potentially synthetic.

Overall assessment

Verdict (FAIL, OPEN, PASS): FAIL

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary:
The narrative relies heavily on recycled content from Dell’s official press release and the Reuters article from November 25, 2025 , with direct quotes matching exactly. The Simply Wall St article republishes content from the Reuters article, indicating recycled material. The lack of original content and specific factual anchors raises concerns about the narrative’s originality and authenticity.