Revenue and EPS beat by roughly 2%, while AI-server shipments reached $8.2B. Full-year AI-server revenue increased to more than $20B from more than $15B. Gross margin of 18.7% missed expectations near 19.5%, while storage and CSG were soft.
[AS-037]FY2026 revenue rose to $105–109B and EPS to $9.55 ± $0.25; Q3 revenue was $26.5–27.5B and EPS $2.45 ± $0.10.
[AS-037]The raise required continued AI scale but embedded ongoing mix pressure, making profit conversion the binding constraint.
[AS-037]The roughly 7% decline showed the market cared more about gross-margin quality and the Q3 EPS bar than the headline AI raise.
[MKT-001]Revenue and EPS beat by roughly 2%, while AI-server shipments reached $8.2B. Full-year AI-server revenue increased to more than $20B from more than $15B. Gross margin of 18.7% missed expectations near 19.5%, while storage and CSG were soft.
Revenue and EPS beat by roughly 2%, while AI-server shipments reached $8.2B.
Full-year AI-server revenue increased to more than $20B from more than $15B.
Gross margin of 18.7% missed expectations near 19.5%, while storage and CSG were soft.
FY2026 revenue rose to $105–109B and EPS to $9.55 ± $0.25; Q3 revenue was $26.5–27.5B and EPS $2.45 ± $0.10.
| Metric | Prior | Latest | Consensus | Delta | Status | Reason / implication |
|---|---|---|---|---|---|---|
| FY2026 revenue | $101–105B | $105–109B | Not consistently available | +$4B midpoint | Raised | AI-server scaleHigher annual growth |
| FY2026 non-GAAP EPS | $9.40 ± $0.25 | $9.55 ± $0.25 | Not consistently available | +$0.15 midpoint | Raised | Mix dilutionSmaller raise than revenue |
| FY2026 AI-server revenue | At least $15B | More than $20B | Not consistently available | At least +$5B | Raised | Orders and backlogVery strong H2 shipments required |
| Q3 revenue | Not previously guided | $26.5–27.5B | Not consistently available | New | New | AI cadenceSequentially near flat |
| Q3 non-GAAP EPS | Not previously guided | $2.45 ± $0.10 | Above midpoint | New | New | Gross-margin pressureBelow Street |
The setup de-risked second-half AI revenue and margin recovery, but backlog drawdown made new order intake the next growth test.
The raise required continued AI scale but embedded ongoing mix pressure, making profit conversion the binding constraint.
The roughly 7% decline showed the market cared more about gross-margin quality and the Q3 EPS bar than the headline AI raise.
The first-day decline was about 7%, despite the full-year raise.
| Window | Stock | vs benchmark | vs peers |
|---|---|---|---|
| 1D | -8.9% | -8.2% | -7.9% |
| 2D | -9.8% | -8.4% | -9.8% |
| 5D | -6.9% | -6.6% | -9.4% |
AI shipments accelerated and supply availability improved, but orders lagged shipments and North American enterprise demand softened.
"Strong demand for AI servers, building on the exceptional demand observed in Q1"; storage demand moderated
Booked $5.6B AI orders, shipped record $8.2B, ending backlog $11.7B; 5-quarter pipeline grew sequentially, "multiples of backlog"
International markets grew; NA weakness "continued"; EMEA commercial up double digits; "federal spending continues to be down"
Backlog "rich with all forms of Blackwell"; pipeline remains multiples of backlog
"More than adequate capacity" through manufacturing network; parts "in full production and have wide-scale availability"
"Deflationary Q2 of all input costs," expected to flatten into 2H; one-time supply-chain expedite costs not to repeat
Management stated intent to "outperform the marketplace and take share," shipping early Blackwell wins throughout the quarter
ASPs "continue to trend up" while Dell "did not raise price," reflecting mix rather than list increases
Consensus snapshots are reconstructed from contemporaneous broker notes; the flattened AlphaSense export does not preserve stable document URLs.
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