Dell shares pop as $9.4B in AI server sales fuel a big Q4 outlook

Dell's Q3 miss, Q4 surge: What sales teams should do right now

Dell missed revenue expectations in Q3, but the story isn't the miss. It's the setup for a big Q4 driven by AI infrastructure demand. If you sell into tech, enterprise, or public sector, this is signal.

Shares popped 5% after hours as Dell raised AI shipment and full-year revenue guidance. Buyers are moving budgets to AI compute now, not "someday."

Quick scorecard

• Q3 EPS (adjusted): $2.59 vs. $2.47 expected
• Q3 Revenue: $27.01B vs. $27.13B expected
• Q4 Sales Guide: ~$31.5B vs. $27.59B expected
• Q4 EPS Guide: $3.50 vs. $3.21 expected
• AI server shipments (FY): raised to $25B from $20B
• Full-year revenue: raised to $111.7B from $107B
• Net income (Q3): $1.54B ($2.28 GAAP EPS) vs. $1.17B ($1.64) YoY
• Total revenue growth: +11% YoY

Where the demand is (and isn't)

• AI infrastructure: Dell expects $9.4B of AI server sales in Q4. That excludes a separate November deal to a neocloud provider.
• ISG (data center): $14.11B revenue; servers and networking at $10.1B, up 37% YoY, with $5.6B in AI server shipments.
• Storage: $4B sold in the quarter (watch the attach rate on AI builds).
• Client (PC/laptops): $12.48B, up 3% YoY but below estimates; PC unit decline of 7% YoY.
• Buyer mix: Big enterprises, governments, and "neoclouds" (e.g., CoreWeave). Less volume into hyperscalers.

Why this matters for sales

AI infrastructure isn't waiting for 2026 budgets. Money is moving in Q4. Teams with clear outcomes, deployment plans, and GPU access are getting POs approved.

Dell is a top vendor for systems built around Nvidia GPUs. If your accounts are building training clusters, RAG inference, or AI-enabled analytics, timing is in your favor. For a quick refresher on the stack, see Nvidia's data center overview here.

Positioning that converts

• Lead with outcomes: "Faster time-to-insight," "cost-per-inference targets," "shorter model iteration cycles." Tie it to a KPI the CFO cares about.
• Capacity + credibility: Dell raised AI shipment guidance. That signals supply access and delivery confidence.
• Full stack sale: Don't stop at servers. Attach networking, storage, support, and workload optimization.
• Risk reduction: Emphasize standards-based gear, vendor support, and predictable scalability.

Target accounts to prioritize

• Enterprises with active gen AI pilots that are bumping into GPU queues or cloud cost ceilings.
• Public sector with approved AI initiatives and budget-use deadlines.
• Neoclouds and regional service providers renting out Nvidia-based capacity to ISVs and mid-market enterprises.
• Data-heavy industries: financial services, healthcare, life sciences, media, retail analytics.

Objections you'll hear (and how to handle them)

• "We'll wait for next-gen chips." Counter with phased deployment: start with inference or RAG now, scale training later. Highlight current lead times and budget windows.
• "Cloud is simpler." Hybrid math: steady-state inference is often cheaper on-prem past a threshold. Bring a 12-18 month TCO comparison.
• "We lack internal expertise." Offer packaged services, validated designs, and reference architectures to shorten time-to-value.
• "PC refresh is our priority." Separate budgets; tie AI infra to revenue-driving use cases, not IT upkeep.

Plays you can run this week

• Budget flush fast-lane: Surface AI projects that can start in 30-60 days with measurable milestones.
• Attach storage + networking: Use the $4B storage result as a credibility hook to expand deal size.
• Proof-of-value sprint: 30-day POC with clear success metrics (latency, throughput, unit economics).
• Executive brief: One-page summary with KPI outcomes, deployment plan, risk mitigation, and TCO.
• Co-sell with services: Implementation + model ops support to remove skill gaps as a blocker.

Forecast implications

Q4 guide at ~$31.5B suggests decision velocity is increasing. If you're forecasting, pull in close dates for deals with hardware availability confirmed and signed-off business cases.

PC softness won't help your quota, but AI infra will. Focus on high-urgency workloads and accounts with clear data strategy.

Signals to watch

• Lead times for Nvidia-based systems and any allocation changes.
• Storage attach rates on AI server deals.
• Public sector RFPs with year-end deadlines.
• Neocloud capacity announcements and reseller programs.
• Customer wins cited in Dell's Q4 print and any color on pipeline conversion.

Want to sharpen your AI pitch and product knowledge?

If you sell into AI infrastructure accounts, keep your learning tight and practical. Explore company-sorted AI learning paths here or browse courses by job here.

Bottom line: buyers with budgets are prioritizing AI infrastructure now. Bring a crisp outcome narrative, a delivery plan, and a clear TCO. Q4 is open.