Dell's Q3 revenue falls short due to weak PC segment, shares drop over 10%.

From Investing.com: 2024-11-26 17:25:35

Dell misses Wall Street expectations for Q3 revenue, shares drop over 10%. Revenue at $24.37 billion, below analyst estimate of $24.67 billion. AI server demand strong, but traditional PC segment struggles. Client solutions group revenue at $12.13 billion, lower than expected $12.43 billion. HP and Best Buy also face weak demand.

Dell’s COO Jeff Clarke notes record AI server demand at $3.6 billion in Q3. Server revenue growth prompts investor interest, but focus on managing costs remains key. Company banking on new AI PCs to boost traditional computer business. Infrastructure solutions group revenue up 34% to $11.37 billion, surpassing estimates.

Server and networking revenue for Dell in Q3 rises 58% to $7.36 billion. Despite strong growth, misses estimated $7.64 billion. Company’s focus on AI-optimized servers paying off, but challenges in traditional PC market persist. Investors closely monitoring cost management and margin impact.



Read more at Investing.com: Dell’s quarterly revenue misses estimates on PC weakness By Reuters