{"id":56451,"date":"2025-11-25T17:38:16","date_gmt":"2025-11-25T21:38:16","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/dells-ai-server-surge-propels-strong-guidance-while-hp-announces-job-cuts-amid-outlook-reduction\/56451\/"},"modified":"2025-11-25T17:38:16","modified_gmt":"2025-11-25T21:38:16","slug":"dells-ai-server-surge-propels-strong-guidance-while-hp-announces-job-cuts-amid-outlook-reduction","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/dells-ai-server-surge-propels-strong-guidance-while-hp-announces-job-cuts-amid-outlook-reduction\/56451\/","title":{"rendered":"Dell&#8217;s AI Server Surge Propels Strong Guidance, While HP Announces Job Cuts Amid Outlook Reduction"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Dell Technologies (<a href=\"\/stock\/DELL\">DELL<\/a>)<\/strong> reported a strong <strong>Q3 adjusted EPS beat<\/strong> and a significant surge in <strong>AI server shipments to $25 billion<\/strong>, leading to a substantial <strong>guidance raise<\/strong> for Q4 and FY26.<\/li>\n<li><strong>HP Inc. (<a href=\"\/stock\/HPQ\">HPQ<\/a>)<\/strong> posted a slight <strong>Q4 revenue and adjusted EPS beat<\/strong> but tempered investor enthusiasm by <strong>cutting its 2026 adjusted EPS outlook<\/strong> and announcing <strong>4,000\u20136,000 job cuts<\/strong> by the end of FY2028.<\/li>\n<li>The <strong>UK<\/strong> is set to increase its <strong>minimum wage by 4.1%<\/strong>, a move by Chancellor Reeves ahead of an anticipated tax-raising budget.<\/li>\n<\/ul>\n<p>Dell Technologies (<a href=\"\/stock\/DELL\">DELL<\/a>) delivered a robust Q3 performance, with adjusted earnings per share (EPS) of <strong>$2.59<\/strong>, significantly beating analyst estimates of <strong>$2.47<\/strong>. While revenue of <strong>$27.01 billion<\/strong> slightly missed the <strong>$27.19 billion<\/strong> estimate, the company&#39;s strong showing in AI server shipments was a key highlight.<\/p>\n<p>The company reported a massive surge in AI server shipments, reaching <strong>$25 billion<\/strong>, substantially exceeding internal projections of <strong>$20 billion<\/strong> and analyst estimates of <strong>$20.82 billion<\/strong>. This strong demand for AI infrastructure propelled Dell&#39;s Infrastructure Solutions Group (ISG) revenue to <strong>$14.11 billion<\/strong>. Dell also issued strong guidance for the upcoming quarters, projecting Q4 revenue between <strong>$31 billion and $32 billion<\/strong> (far surpassing the <strong>$27.64 billion<\/strong> estimate) and an FY26 adjusted EPS midpoint of <strong>$9.92<\/strong>. Furthermore, the company anticipates FY revenue between <strong>$111.2 billion and $112.2 billion<\/strong>, up from previous guidance of <strong>$105 billion to $109 billion<\/strong>. In a related development, Dell announced the appointment of David Kennedy as its new CFO.<\/p>\n<p>In contrast, HP Inc. (<a href=\"\/stock\/HPQ\">HPQ<\/a>) presented a mixed financial picture. The company reported Q4 revenue of <strong>$14.64 billion<\/strong>, slightly above the <strong>$14.53 billion<\/strong> estimate, and adjusted EPS of <strong>93 cents<\/strong>, narrowly beating the <strong>92 cents<\/strong> estimate. Despite these beats, HP cut its 2026 adjusted EPS outlook to a range of <strong>$2.90\u2013$3.20<\/strong>, below the prior estimate of <strong>$3.32<\/strong>.<\/p>\n<p>HP also announced plans for significant restructuring, including <strong>4,000 to 6,000 job cuts<\/strong> by the end of fiscal year 2028, aiming to streamline operations. The company projects 2026 free cash flow to be between <strong>$2.8 billion and $3 billion<\/strong> and boosted its quarterly dividend. <em>The job cuts signal a strategic effort to optimize costs and improve efficiency amidst a challenging market for personal computers and printing.<\/em><\/p>\n<p>In other news, the UK government, under Chancellor Reeves, announced a <strong>4.1% increase<\/strong> 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.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Dell Technologies (DELL) reported a strong Q3 adjusted EPS beat and a significant surge in AI server shipments [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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