The following is a summary of the Dell Technologies Inc. (DELL) Q3 2025 Earnings Call Transcript:

Financial Performance:

• Dell Technologies reported a 10% increase in Q3 revenue to $24.4 billion, driven by strong growth in ISG revenue.

• Diluted EPS increased by 14% to $2.15, reflecting improved operating income.

• Gross margin was reported at 22.3% of revenue, though there was a decline of 140 basis points due to a shift towards AI optimized servers and competitive pricing in CSG.

• Operating income grew by 12% to $2.2 billion, with operating expenses decreasing by 2% to $3.2 billion.

Business Progress:

• Dell continues to see robust demand in AI servers, with a substantial order demand of $3.6 billion, up 11% sequentially, primarily from Tier 2 cloud service providers and consistent growth from enterprise customers.

• The company introduced several new products including the 21-inch ORv3 Integrated Rack 7000 and enterprise-ready GB200 NVL72 server racks.

• Dell is expanding its AI capabilities, including a new AI server supporting up to 144 GPUs per rack and enhanced power management and cooling solutions.

Opportunities:

• Dell's ISG business is poised for growth with strong demand in both AI and traditional servers.

• The impending PC refresh cycle, driven by an aging install base and the upcoming end-of-life of Windows 10, is expected to boost CSG growth.

Risks:

• AI server revenue growth may be inconsistent as customers navigate changing silicon roadmaps and as AI server shipments depend on component availability, particularly the new Blackwell platform.

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