Dell Shares Slide 10% As Soft Q3 EPS Outlook Overshadows Strong Q2 Results

Dell Technologies Inc. (NYSE:DELL) shares fell nearly 10% on Friday after the company issued weaker-than-expected third-quarter profit guidance, despite posting solid fiscal second-quarter results and lifting its full-year forecast.

Adjusted EPS was $2.32 on revenue of $29.78 billion, compared with estimates of $2.31 and $29.02 billion. Operating margin reached 7.7%, supported by stronger performance in the client solutions group, which posted $12.5 billion in revenue, up 1% year-over-year.

For Q3, Dell guided EPS of $2.45, below consensus of $2.55, while revenue was projected at $26.5–$27.5 billion, ahead of expectations of $26.31 billion.

For FY26, Dell raised its outlook to EPS of $9.55 on revenue of $105–$109 billion, versus prior guidance of $9.40 and $103 billion, topping consensus of $9.38 and $104.84 billion. AI server sales are now expected to total $20 billion, up from $15 billion previously.