Dell Technologies Reports Q3 Revenue Miss

Dell Technologies' stock plummeted over 10% in extended trading following the release of its third-quarter earnings, which revealed a revenue of $24.4 billion, falling short of analysts' expectations of $24.67 billion. Despite exceeding earnings estimates with $2.15 per share, the company's performance was hindered by weaker demand for traditional PCs and competition in the server market. AI server orders surged to a record $3.6 billion, reflecting a 50% increase in the pipeline, but overall revenue in the client solutions group underperformed. Dell's net income rose to $1.12 billion, marking a 12% increase from the previous year. The firm acknowledged that fluctuations in AI server sales could continue due to rapid technological developments. Investors are particularly concerned about rising costs associated with building AI-focused hardware amidst competitive pricing pressures.