Dell Technologies reported significant growth in its Infrastructure Solutions Group (ISG) for the third quarter of fiscal 2026, with revenues increasing 24% year-over-year to $14.10 billion. This marks the seventh consecutive quarter of double-digit growth driven primarily by a surge in cloud infrastructure demand. The company also secured $12.3 billion in AI server orders during the same period, totaling $30 billion year-to-date, and ended the quarter with a record backlog of $18.4 billion in AI server orders.
In support of its AI cloud collaboration with Microsoft, Dell announced in November 2025 that it will supply racks of NVIDIA GB300 GPUs and accompanying data center equipment to IREN for four data centers in Childress, TX. Despite strong growth, Dell faces fierce competition from Microsoft and Alphabet, with Microsoft reporting $49.1 billion in cloud revenues for the first quarter of fiscal 2026, while Google Cloud reported a 46% sequential growth in backlog.
As of now, Dell’s shares have gained 4% over the past six months, underperforming the broader tech sector’s return of 19.7%. The Zacks Consensus Estimate projects an earnings per share growth of 21.5% year-over-year for fiscal 2026, with estimates currently at $9.89 per share.
