Dell’s AI Server Surge Propels Strong Guidance, While HP Announces Job Cuts Amid Outlook Reduction

By / / Breaking News

Key Takeaways

  • Dell Technologies (DELL) reported a strong Q3 adjusted EPS beat and a significant surge in AI server shipments to $25 billion, leading to a substantial guidance raise for Q4 and FY26.
  • HP Inc. (HPQ) posted a slight Q4 revenue and adjusted EPS beat but tempered investor enthusiasm by cutting its 2026 adjusted EPS outlook and announcing 4,000–6,000 job cuts by the end of FY2028.
  • The UK is set to increase its minimum wage by 4.1%, a move by Chancellor Reeves ahead of an anticipated tax-raising budget.

Dell Technologies (DELL) delivered a robust Q3 performance, with adjusted earnings per share (EPS) of $2.59, significantly beating analyst estimates of $2.47. While revenue of $27.01 billion slightly missed the $27.19 billion estimate, the company's strong showing in AI server shipments was a key highlight.

The company reported a massive surge in AI server shipments, reaching $25 billion, substantially exceeding internal projections of $20 billion and analyst estimates of $20.82 billion. This strong demand for AI infrastructure propelled Dell's Infrastructure Solutions Group (ISG) revenue to $14.11 billion. Dell also issued strong guidance for the upcoming quarters, projecting Q4 revenue between $31 billion and $32 billion (far surpassing the $27.64 billion estimate) and an FY26 adjusted EPS midpoint of $9.92. Furthermore, the company anticipates FY revenue between $111.2 billion and $112.2 billion, up from previous guidance of $105 billion to $109 billion. In a related development, Dell announced the appointment of David Kennedy as its new CFO.

In contrast, HP Inc. (HPQ) presented a mixed financial picture. The company reported Q4 revenue of $14.64 billion, slightly above the $14.53 billion estimate, and adjusted EPS of 93 cents, narrowly beating the 92 cents estimate. Despite these beats, HP cut its 2026 adjusted EPS outlook to a range of $2.90–$3.20, below the prior estimate of $3.32.

HP also announced plans for significant restructuring, including 4,000 to 6,000 job cuts by the end of fiscal year 2028, aiming to streamline operations. The company projects 2026 free cash flow to be between $2.8 billion and $3 billion and boosted its quarterly dividend. The job cuts signal a strategic effort to optimize costs and improve efficiency amidst a challenging market for personal computers and printing.

In other news, the UK government, under Chancellor Reeves, announced a 4.1% increase in the national minimum wage. This move comes ahead of an anticipated tax-raising budget, reflecting ongoing efforts to address cost of living challenges for workers.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
Scroll to Top