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Dell Technologies Reports Q3 2026 Revenue Growth of 4.1 % to $16.48 B

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  Published in Business and Finance on Tuesday, November 25th 2025 at 20:27 GMT by Seeking Alpha

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Dell Technologies Q3 2026 Earnings Call – A Detailed Summary

On the day of the earnings call, Dell Technologies (NYSE: DELL) turned the spotlight on its latest performance and future trajectory. The company’s management – CEO Michael Dell and CFO Dan Holland – delivered a full‑scale recap of Q3 2026 results, followed by a robust Q&A with analysts. The call, which was streamed live and later made available as a transcript on Seeking Alpha, contains the most complete narrative of Dell’s recent operational health, strategic priorities, and forward guidance.

1. Opening Remarks – CEO Michael Dell

Michael Dell opened the call with a high‑level view of the macro environment. He acknowledged that the global economy remains “inflation‑laden” but is stabilising, and that the global PC market has plateaued after a 2023‑mid‑year surge driven by remote‑work and the post‑COVID rebound. Dell’s PC and small‑business segments saw a slight decline in revenue year‑over‑year, but the company is capitalising on a shifting mix toward high‑margin service and infrastructure solutions.

He emphasized the continued relevance of hybrid‑cloud and the acceleration of digital‑worker initiatives, noting that Dell’s portfolio—spanning Dell PowerEdge servers, Dell EMC storage, and VMware software—positions the firm well to capture the rising demand for edge and data‑center workloads. Dell also touched on sustainability commitments: the firm is investing heavily in renewable‑energy‑powered data‑centres and has set a target of carbon neutrality across its own operations by 2030.

2. Financial Highlights – CFO Dan Holland

Dan Holland presented the core metrics for Q3 2026, highlighting both top‑line growth and margin expansion.

Holland stressed that the adjusted EBITDA margin—a more consistent indicator than GAAP EPS—rose to 18.5 % from 17.9 % in the prior quarter, largely thanks to a higher contribution from VMware and Dell PowerEdge. The CFO also underscored that cost‑control initiatives and supply‑chain efficiencies have begun to translate into margin gains.

3. Segment‑by‑Segment Performance

The call broke down the results by Dell’s key operating units.

a. Dell Technologies (PC, Small‑Business, & OEM)

• Revenue: $9.73 B (+3.5 % YoY, down 0.9 % YoY vs Q2 2026).
• Operating margin: 16.9 % (+0.3 % YoY).
• The segment remained volume‑heavy, but margins were being squeezed by higher component costs; the company is mitigating this through pricing power on its higher‑end models.

b. Dell EMC (Data‑Center Infrastructure & Storage)

• Revenue: $3.21 B (+4.8 % YoY).
• Operating margin: 17.5 % (+0.5 % YoY).
• Growth driven by edge‑compute and storage‑as‑a‑service contracts.

c. VMware

• Revenue: $2.61 B (+6.4 % YoY).
• Operating margin: 29.4 % (+1.1 % YoY).
• VMware’s subscription business grew 10 % YoY, a key margin driver. The CFO noted that software licensing continues to be a high‑margin engine, offsetting the more variable hardware side of the business.

d. Dell Services

• Revenue: $1.20 B (+3.0 % YoY).
• Operating margin: 21.0 % (+0.4 % YoY).
• Dell Services’ margin improvement stems from greater efficiencies and a shift toward managed services contracts.

4. Capital Expenditure and Investment Strategy

Dell’s capital‑expenditure (CapEx) for Q3 2026 was $1.20 B, an increase of +5 % YoY. The CFO explained that this uptick is aimed at expanding the Dell EMC and VMware data‑center capabilities, particularly the development of AI‑optimized infrastructure and high‑performance networking for hyperscale clients.

Dell is also accelerating its green‑energy initiatives, allocating $200 M of CapEx to the construction of renewable‑energy‑powered data‑centres in North America and Europe. The company estimates that this will reduce its carbon footprint by 25 % over the next five years.

5. Guidance for Q4 2026

For the final quarter of FY 2026, Dell projected:

• Revenue: $17.01 B (+3.1 % YoY).
• Adjusted EBITDA: $3.15 B (+4.1 % YoY).
• Operating Margin: 18.8 % (+0.2 % YoY).

Management indicated that PC and OEM will likely continue to face pressure, but data‑center infrastructure and subscription services should remain the primary growth engines. The CFO added that the company expects to maintain a stable CapEx level of $1.15 B for Q4 2026, slightly below Q3 2026 due to the scheduled completion of several large‑scale infrastructure projects.

6. ESG and Sustainability Highlights

The call also delved into Dell’s environmental, social, and governance (ESG) strategy:

• Carbon‑Neutral Operations: Dell has announced a roadmap to achieve carbon neutrality across its global operations by 2030. This includes a 100 % renewable energy procurement goal for its data‑centres by 2025.
• Circular Economy: Dell plans to increase the rate of recycled component usage in its hardware by 15 % over the next three years.
• Supply‑Chain Transparency: The company is working with suppliers to improve traceability of conflict‑mined materials, in line with the UN Global Compact.

The ESG efforts are not only a compliance requirement but also a key differentiator for customers increasingly demanding responsible sourcing.

7. Q&A Highlights

a. AI and Emerging Tech

An analyst asked whether Dell’s infrastructure is ready for large‑language‑model workloads. The management confirmed that PowerEdge servers with Xeon Scalable CPUs and GPU‑accelerated storage are already in the pipeline, and that Dell will partner with Nvidia to deliver integrated solutions.

b. Margin Pressure

Questions were raised about the shrinking PC market and its effect on margins. The CFO emphasised that while PC revenue is under pressure, Dell’s high‑margin service contracts and subscription models are compensating. Dell is also pursuing a pricing strategy that prioritises higher‑end, higher‑margin products.

c. Supply‑Chain Risks

Analysts queried about the company’s supply‑chain resilience amid the ongoing semiconductor shortage. Dell reiterated its multi‑source strategy, increased inventory buffers, and a partnership with the Semiconductor Industry Association (SIA) to better anticipate disruptions.

d. Capital Allocation

A question about the return on capital was answered by CFO Holland, who highlighted that Dell’s Free Cash Flow remains robust at $2.07 B and that the company will maintain a disciplined approach to share buybacks and dividends while reserving capital for strategic acquisitions.

8. Takeaway

Dell Technologies’ Q3 2026 earnings call demonstrates a company in transition: while the PC segment is facing a softening cycle, the firm’s software‑service and data‑center businesses are delivering stronger growth and healthier margins. The management team emphasised that the focus will be on margin expansion through higher‑value services, innovation in AI‑ready infrastructure, and a sustained commitment to ESG principles.

With guidance indicating modest revenue growth and a slight uptick in adjusted EBITDA, Dell’s outlook suggests that the company remains well‑positioned to navigate the current macro environment and capitalize on the acceleration of hybrid‑cloud and edge‑compute trends. The call’s depth—covering everything from quarterly numbers to long‑term ESG strategy—provides a holistic view that will help investors gauge Dell’s trajectory in the coming quarters.

Note: This summary is based on the Seeking Alpha article and associated references. For the most detailed figures, refer directly to Dell Technologies’ official Q3 2026 earnings release and the accompanying SEC filings.