Dell Technologies shares experienced a significant jump in premarket trading on Wednesday, November 26, 2025, building on the positive momentum generated by the company’s third-quarter earnings release. The stock reached $131.65 in premarket trading as of 8:44 AM EST, marking a gain of $5.74, or 4.56%, from its previous closing price of $125.92.
This rally is a direct response to Dell's announcement of an improved full-year revenue forecast, largely driven by the substantial demand for artificial intelligence servers. The company now anticipates approximately $25 billion in AI server sales for fiscal year 2026.
Record Third Quarter Revenue and Strong AI Server Orders Drive Momentum
Dell Technologies reported record-breaking third-quarter results, with revenue increasing by 11% to $27 billion, representing the highest quarterly revenue in the company's history. Dell surpassed analyst expectations, posting non-GAAP earnings per share of $2.59, exceeding the estimated $2.48. GAAP earnings per share saw a significant year-over-year increase of 39%, reaching $2.28. The company also demonstrated robust financial performance with operating cash flow of $1.2 billion during the quarter.
The artificial intelligence segment emerged as the company's most impressive performer. Chief Operating Officer Jeff Clarke noted that demand for AI solutions accelerated significantly in the latter half of the year. In the third quarter alone, Dell secured AI server orders totaling $12.3 billion, bringing the year-to-date total to $30 billion.
David Kennedy, Dell's newly appointed Chief Financial Officer, revised the company's AI shipment forecast upwards to approximately $25 billion for the full year. This upward revision represents a growth of over 150% and is an increase from the previous forecast of $20 billion.
Dell Raises FY26 Outlook as AI Shipments Approach $25 Billion
Dell has substantially increased its full-year fiscal 2026 revenue guidance, now projecting a range of $111.2 billion to $112.2 billion. This revised outlook signifies approximately 17% growth at the midpoint and surpasses both its previous forecast and prevailing analyst estimates.
Looking ahead to the fourth quarter, the company forecasts revenue between $31 billion and $32 billion, with adjusted earnings per share projected at approximately $3.50. This figure exceeds the Street's estimates of $3.31. This optimistic outlook underscores Dell's strong strategic position within the rapidly expanding market for AI infrastructure.
The company attributes its recent success to its proficiency in constructing custom, high-performance systems and its ability to rapidly deploy extensive server clusters for a diverse range of clients. Dell's comprehensive strategy for AI infrastructure has allowed it to effectively capitalize on the growing enterprise demand for AI computing power, thereby bolstering investor confidence in its long-term growth prospects.
Despite the stock having traded down 11% over the past year, with a 52-week range of $66.25 to $168.08, the company's AI-driven momentum has reignited optimism among analysts. The average price targets currently hover around $161.61, suggesting considerable potential for upside.