### Dell Technologies Reports Strong Q3 Performance with Impressive Revenue Growth

Dell Technologies Inc. has announced significant growth in its fiscal year 2025 third-quarter financial results, underscoring robust performance driven by a remarkable increase in AI and traditional servers. The company reported a revenue of $24.4 billion for Q3, marking a 10% year-over-year increase. This achievement was primarily supported by strong ISG (Infrastructure Solutions Group) revenue growth, and the company's dedication to maintaining balanced profitability has paid off.

Jeff Clarke, the Chief Operating Officer and Vice Chairman of Dell Technologies, highlighted that the company achieved a diluted earnings per share (EPS) of $2.15, representing a 14% increase, and generated $1.6 billion in cash flow from operations. Clarke credited the team's focused execution and strategic initiatives for delivering these strong results.

The Infrastructure Solutions Group (ISG) experienced notable momentum in AI server orders, which reached a record $3.6 billion, up 11% sequentially. The demand has been particularly strong from Tier 2 cloud service providers and enterprise customers. Dell Technologies shipped $2.9 billion worth of AI servers in Q3, resulting in an AI server backlog of $4.5 billion. With a five-quarter pipeline that grew more than 50% sequentially, the company saw growth across all customer types, expanding its customer base to over 2,000 unique enterprise customers since the launch of the XE9680.

Dell's product innovations have also been a key driver of its success. The company introduced several new offerings, including the 21-inch Orv3 Integrated Rack 7000, the GB200 NVL72 server rack with direct liquid cooling, and the M7725 and IR5000 racks that cater to high-performance computing demands. These new products are designed to meet the evolving needs of enterprise customers, particularly those focusing on AI and high-performance computing.

In the Client Solutions Group (CSG), Dell observed stability with demand growth in commercial PCs for the third consecutive quarter. However, consumer demand and profitability continued to face challenges. The company is optimistic about the upcoming PC refresh cycle, driven by an aging installed base and the impending end-of-life for Windows 10.

CFO Yvonne McGill shared an in-depth look at Dell's financial performance, noting a 34% rise in ISG revenue to $11.4 billion and a 58% increase in servers and networking revenue, marking a Q3 record. The CSG segment experienced a slight revenue decline to $12.1 billion, with commercial revenue up 3% and consumer revenue down 18%. Dell Financial Services also saw a decrease, with originations down 11% to $1.6 billion.

Despite the dynamic IT spending environment, Dell remains confident in its broad portfolio and market positioning. The company expects Q4 revenue to range between $24 billion and $25 billion, with ISG and CSG combined growth anticipated at 13% at the midpoint. Dell forecasts further improvements in ISG operating income rates in Q4.

Looking ahead to fiscal year 2026, Dell anticipates multiple tailwinds, including robust AI demand and an aging install base primed for refresh. The company plans to continue balancing growth and profitability, leveraging its strengths to extend its market leadership and drive shareholder value.

In conclusion, Dell Technologies has demonstrated solid performance in Q3 with substantial revenue growth, driven by advancements in AI and traditional servers. The company remains well-positioned to capitalize on emerging opportunities in the IT landscape.