Revenue from Dell's client solutions group, which includes its PC business, was $12.13 billion, below the expected $12.43 billion. The company's server revenue is growing, but investors are concerned about the company's costs, particularly after Dell warned in May that the high costs of building AI-heavy servers and competitive pricing could impact its margins. Despite this, Dell is hoping that new AI PCs will boost its traditional computer business.
Key takeaways:
- Dell's third-quarter revenue fell short of Wall Street expectations due to weaker demand for traditional PCs and competition from rival server makers.
- The company reported revenue of $24.37 billion, compared to the average analyst estimate of $24.67 billion.
- Despite high demand for Dell's AI-optimized servers, its traditional PC segment is struggling due to competition and weaker consumer spending.
- Dell's server revenue is growing, but investors are concerned about the company's costs, particularly in relation to building AI-heavy servers and competitive pricing.