Dell Technologies Inc. reported its highest-ever third-quarter earnings, fueled by strong demand for AI technology, growth in its Infrastructure Solutions Group (ISG), and improved margins.

• ISG sales rose 24% to $14.1 billion.
• Servers and networking sales increased 37% to $10.1 billion.
• Total revenue reached $27 billion, up 11% year over year.
• Diluted EPS hit $2.59, a 17% increase, supported by AI and storage profits.
• Gross margin grew 4% to $5.7 billion (21.1% of sales).
• Operating income rose 11% to $2.5 billion.

AI server demand remains strong, with $12.3 billion in AI server orders this quarter and an $18.4 billion backlog. Year-to-date, Dell has received $30 billion in AI server orders. Dell highlighted its ability to deploy fully functional AI racks in 36 hours with 99% uptime.

For Q4, Dell expects revenue between $31 billion and $32 billion, with ISG growth in the mid-60s. The midpoint non-GAAP EPS projection is $3.50, a 31% increase. Full-year FY26 AI server sales are expected to exceed $25 billion, with $9.4 billion projected in Q4.

Despite rising component costs and supply constraints, Dell emphasized operational flexibility and cost recovery. The company repurchased 8.9 million shares at $140 each in Q3, returning $1.6 billion to shareholders.