Dell Surges with Record Q3 Revenue, Appoints David Kennedy CFO

UPDATE: Dell Technologies Inc. has just reported a record-breaking third-quarter revenue of $27.01 billion, marking an 11% increase from the previous year. The Round Rock-based tech giant also announced the appointment of David Kennedy as its permanent Chief Financial Officer during a press conference earlier today.

Despite narrowly missing Wall Street expectations, Dell’s profit surged by 32% to $1.55 billion, translating to $2.59 per adjusted share. This figure exceeds the forecasted earnings of $2.48 per share by analysts from Zacks Investment Research. Shares jumped as much as 5% in after-hours trading, reflecting investor optimism.

Looking ahead, Dell anticipates fourth-quarter earnings of $3.50 per share and revenue projected between $31 billion and $32 billion. The company is poised to capitalize on the soaring demand for AI, expecting to sell $9.4 billion worth of AI servers in the upcoming quarter. Notably, this figure excludes a previously announced deal to supply Nvidia-based systems to Iren, a cloud provider slated to rent these systems to Microsoft.

“AI momentum remains exceptional,” stated Jeff Clarke, Vice Chairman and Chief Operating Officer, emphasizing the company’s competitive advantage in engineering tailored, high-performance AI solutions. He further highlighted the record backlog of orders and a diverse customer base, indicating strong growth potential.

However, the outlook isn’t entirely rosy. During the earnings call, Clarke warned of impending price increases for customers next year, attributing this to overwhelming demand outpacing supply. “Demand is way ahead of supply,” Clarke explained, adding that the current situation is “not typical.” He stressed, “Our number one rule is get parts, secure supply, secure the mix,” underscoring the urgency to meet rising customer demands for computational power.

Dell Technologies, a cornerstone of the Texas technology sector, has been establishing its roots in Central Texas since its inception and has been headquartered in Round Rock since 1994. The company employs around 13,000 workers in the Austin area, although recent rounds of layoffs have not updated this figure. Dell’s global workforce has shrunk by 25,000 employees since 2023, a reduction attributed to “business modernization initiatives” and strategic investments in AI technology.

As the tech landscape evolves rapidly, Dell’s latest financial results and strategic moves underscore its commitment to innovation and responsiveness to market demands. The company is now in a pivotal position to navigate its next steps, with a watchful eye on AI advancements and market dynamics.

Stay tuned for more updates as Dell continues to shape the future of technology amid growing global interest in AI solutions.