Dell Technologies Inc. ( DELL ) shares are trading lower after the company reported worse-than-expected 2025 fiscal-year third-quarter sales results on Tuesday after the bell.

The Details: Dell stock dropped approximately 6.5% following its earnings report on Tuesday and continues to decline on Wednesday morning. The earnings report included sales of $24.37 billion, missing analyst estimates of $24.65 billion but representing a 10% year-over-year increase.

The company broke down its sales further, reporting $11.4 billion from its Infrastructure Solutions Group (ISG) and $12.1 billion from its Client Services Group (CSG). In addition, the company reported adjusted earnings per share of $2.15, beating analyst estimates of $2.05.

“We continued to build on our AI leadership and momentum, delivering combined ISG and CSG revenue of $23.5 billion, up 13% year over year,” said Yvonne McGill, CFO of Dell.

“Our continued focus on profitability resulted in EPS growth that outpaced revenue growth, and we again delivered strong cash performance.”

On a note, Goldman Sachs remained positive about Dell’s long-term outlook, citing strong AI server demand and opportunities from a delayed PC refresh cycle expected to materialize in 2025. Goldman highlighted strong AI orders of $3.6 billion, contributing to a $4.5 billion backlog in AI servers.

However, Goldman Sachs acknowledged some short-term challenges, including weaker demand for PCs and a delayed recovery in the PC refresh cycle. The firm also noted that while AI server demand remains strong, Blackwell server shipments could face headwinds from component availability, potentially impacting next quarter's results.

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DELL Price Action: At the time of publication, Dell stock is trading 12.9% lower at $123.48, according to data from Benzinga Pro.

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