DELL’s ISG Revenue Surges on Soaring AI‑Server Demand

Dell Technologies (DELL) saw its Infrastructure Solutions Group (ISG) revenue shoot up 24% year‑over‑year in fiscal Q3 2026 — chalking up a seventh straight quarter of double‑digit growth. The surge is mainly driven by robust demand for AI‑optimized servers: during the quarter Dell booked $12.3 billion in new AI server orders, bringing its year‑to‑date AI‑server order total to about $30 billion. Meanwhile, shipments hit $5.6 billion, and the company ended the quarter with a backlog of $18.4 billion — underscoring sustained appetite for its AI infrastructure. On the profitability front, ISG’s operating income climbed to a record $1.7 billion, up 16% from a year earlier, with the operating margin rising to roughly 12.4%. Dell says this AI‑server momentum is a core growth engine — expecting to ship roughly $9.4 billion in AI servers in Q4 alone and aiming for total fiscal‑year AI server shipments of about $25 billion, which would represent a roughly 150% increase year‑over‑year. That said — even as Dell stakes its future on the AI boom — the company faces growing competition from rivals such as Hewlett Packard Enterprise (HPE) and Super Micro Computer (SMCI), both of which are aggressively pushing their own AI‑optimized server lines. #Dell #AIservers #TechEarnings #CloudInfrastructure #SlimScan #GrowthStocks #CANSLIM