Dell Forecasts Yearly Gross Margin Decline, Shares Slip 9%

Dell Technologies reported mixed financial results for its fiscal fourth quarter, with earnings per share of $2.68 beating estimates of $2.52, but revenue of $23.9 billion falling short of the $24.6 billion forecast. The stock reacted negatively, dropping nearly 7% in after-hours trading, reflecting investor caution over future guidance. For the upcoming quarter, Dell expects earnings per share of $1.65, lower than the consensus of $1.78, and revenue between $22.50 and $23.50 billion, which is below the expected $23.63 billion. Despite these challenges, Dell's full-year guidance for FY26 suggests earnings per share of $9.30 and revenue between $101 billion and $105 billion, aligning closely with analyst expectations. The company noted strong prospects in AI, with significant bookings contributing to a robust backlog in its infrastructure solutions group. Overall, while Dell faces short-term headwinds, its long-term outlook appears optimistic, particularly in the AI sector.