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Published on
November 26, 2025
5 min read
Dell Stock Soars 5% on Strong, AI-Driven Q4 Revenue Forecast
In Focus
- Dell increased annual revenue forecast to between $111.2 billion and $112.2 billion
- The company forecasts revenue of between $31 billion and $32 billion in Q4
- Dell’s revenue forecasts are based on the growing demand for AI servers
Dell stock gained 5% in premarket trading on November 26, 2025, after the tech company’s Q4 revenue and profit forecasts surpassed analyst expectations. According to Yahoo Finance, Dell’s revenue forecast was informed by the growing data center investments, which has increased demand for AI servers.
Dell Expects Revenue Growth Despite Missed Q3 Target
Dell forecasts revenue and profit in the range of $31 and 32 billion in the fourth-quarter, against the $27.59 billion expected by analysts. The company predicted a profit forecast of $3.50 per share, which is slightly higher than the expected $3.21 per share.
Dell, which has been leveraging AI servers to boost growth, increased its annual revenue forecast to between $111.2 billion and $112.2 billion, up from the previous forecast of between $105 and $109 billion. Although the company gave a strong, AI-driven growth outlook, it missed its third-quarter revenue estimates.
The company’s Q3 revenue stood at $27.01 billion, against analyst expectations of $27.13 billion. However, its adjusted profit surpassed analyst expectations at $2.59 per share against the estimated $2.47 per share
The company raised its Q3 revenue forecasts from $15 billion to $20 billion in August 2025. Its stock dropped 7% at the time as investors feared weak margins due to the high cost of producing AI-optimized servers and intense competition.
Riding the AI Data Center Wave
Dell’s AI infrastructure strategy relies on tech companies’ push to establish data centers. The company has signed server supply deals with various firms, including the U.S. Energy Department and G42, an AI firm based in Abu Dhabi. Dell also supplies servers to Elon Musk’s xAI and CoreWeave, which are both working to boost their AI capabilities.
In July 2025, CoreWeave announced a $6 billion investment towards establishing an AI data center in the U.S. state of Pennsylvania. xAI is also undertaking significant data center expansion across key locations in the United States to support large-scale AI computing operations.
The company is reportedly discussing a $15 billion funding round that targets a $230 billion valuation with private investors. With this funding, xAI is reportedly prioritizing development of physical and technological AI infrastructure.
How Does Dell Expect to Grow in the 2026 FY?
In the 2026 fiscal year, Dell expects revenue from AI server sales to reach $25 billion, up from its previous forecast of $20 billion. The tech company reported that its AI server backlog had hit the $18.4 billion mark in the third-quarter after it received new orders worth $12.3 billion. The company shipped AI servers worth $5.6 billion to customers in Q3.
Dell raised revenue targets for the fourth quarter despite investors fears that rising production costs and competition from other AI-server makers like Super Micro Computer could squeeze its profit margins. The company makes AI-optimized servers that are equipped with NVIDIA’s advanced chips.
