Dell Technologies lifted its full-year AI infrastructure outlook after reporting strong Q3 FY26 results, driven by record AI-optimized server demand and a rapidly expanding multi-quarter pipeline. Q3 revenue reached $27.0 billion, up 11% year over year, supported by $5.6 billion in AI server shipments and an AI backlog standing at $18.4 billion entering Q4. Dell now expects to ship roughly $25 billion in AI servers in FY26, more than 150% higher than last year, according to guidance detailed in its investor presentation .
The Infrastructure Solutions Group (ISG) generated a record $14.1 billion in revenue, up 24% year over year, with Servers & Networking rising 37% to $10.1 billion. Dell highlighted accelerating demand across neocloud providers, sovereign AI programs, and large enterprises, with its five-quarter AI pipeline now “multiples” of its existing backlog. The company expects AI server shipments to reach $9.4 billion in Q4, marking its strongest quarter for AI infrastructure to date.
Dell provided updated Q4 and full-year guidance that reflects this demand surge. It now projects FY26 revenue of $111.7 billion and expects full-year non-GAAP diluted EPS to reach $9.92, driven by ISG revenue growth in the mid-30% range and 150-plus percent expansion in AI infrastructure shipments.
“FY26 will be another record year, and we’re raising our AI shipment guidance to roughly $25 billion, up over 150% year over year,” said David Kennedy, CFO of Dell Technologies.
Key points
- Q3 FY26 revenue: $27.0 billion, up 11% year over year.
- Q3 ISG revenue: $14.1 billion, up 24% year over year.
- Q3 AI server shipments: $5.6 billion (YTD shipments: $15.6 billion).
- AI backlog exiting Q3: $18.4 billion.
- AI server orders YTD: $30 billion.
- Full-year FY26 AI server shipment guidance: ~$25 billion, up 150%+.
- Q4 expected AI server shipments: ~$9.4 billion.
- FY26 revenue guidance: $111.2–$112.2 billion (midpoint $111.7 billion).
- FY26 non-GAAP diluted EPS: ~$9.92.
- Q4 FY26 revenue guidance: $31–$32 billion (midpoint up 32% year over year).
- Q4 FY26 non-GAAP diluted EPS: ~$3.50.
- ISG operating income in Q3: $1.7 billion, up 16%.
“AI momentum is accelerating in the second half of the year, leading to record AI server orders of $12.3 billion and an unprecedented $30 billion in orders year to date.
” — Jeff Clarke, Vice Chairman & COO, Dell Technologies
🌐 Analysis
Dell’s updated guidance underscores the steep acceleration of AI-infrastructure spending across neocloud and enterprise buyers, a trend validated by competitors including HPE, Lenovo, and Supermicro, who have also cited multiquarter backlogs for accelerator-rich systems. Dell’s strength lies in its rack-scale integration and breadth of liquid-cooled platforms (XE9680L, XE9780, IR9000 series) shown in the Q3 presentation, which position the company to serve expanding GB200/NVL72-class cluster deployments .
This quarter also highlights a shift toward sovereign AI programs—mirroring announcements from AWS, NVIDIA, and global governments—suggesting that Dell’s diversified customer base may help buffer against hyperscaler spending cycles.
