Dell Technologies on Tuesday, November 26, released information about its earnings for the third quarter of fiscal year 2025 and a forecast for financial indicators for the next quarter, which turned out to be below Wall Street’s preliminary expectations, despite the optimistic statements of this company regarding the growth of artificial intelligence sales.
The value of shares of the mentioned firm fell 10% in after-hours trading on Tuesday. The corresponding downward dynamic is associated with a disappointing forecast.
Dell’s revenue for the third quarter of fiscal year 2025 was fixed at $24.4 billion. This indicator showed an increase of 10% year-on-year. The LSEG consensus forecast provided that the company’s revenue for the mentioned period would be fixed at $24.67 billion.
Dell’s net income for the third quarter of fiscal year 2025 was $1.12 billion, or $1.58 per share. This indicator increased by 12% year-on-year.
Dell expects its revenue for the fourth quarter of fiscal year 2025 to be fixed in the range of $24 billion to $25 billion. It is worth noting that the LSEG consensus forecast provided that the corresponding figure would be $25.57 billion.
The company also predicts that for the mentioned period, its adjusted earnings per share will be fixed at $2.5. At the same time, the LSEG consensus forecast provided that the corresponding figure would be $2.65 per equity.
Dell chief operating officer Jeff Clark told investors on the earnings call that artificial intelligence-based growth will change from quarter to quarter. According to him, the relevant business will not be linear. In this context, he also noted that customers navigate an underlying silicon roadmap that is changing.
Since the beginning of the current year, Dell shares have risen by 86%. This dynamic is related to the fact that this company is one of the most important among firms that sell tools and systems for artificial intelligence developers.
Dell’s Infrastructure Solutions Group, which includes AI servers, storage, networking components, and traditional servers, generated revenue of $11.4 billion in the third quarter of fiscal year 2025. This indicator increased by 34% year-on-year.
Dell’s Client Solutions Group, which specializes in sales of personal computers and laptops to consumers and businesses, recorded revenue of $12.1 billion in the third quarter of fiscal year 2025. This indicator decreased by 1% compared to the result a year ago.
Dell also said that much of the growth of its artificial intelligence systems has already been reflected in future orders worth $4.5 billion.
As we have reported earlier, Dell Characterizes Servers as Main Growth Engine in AI Era.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
