Growth in artificial intelligence PCs could be a key topic when Dell Technologies Inc (NASDAQ:DELL) reports third-quarter financial results Tuesday after market close.
• DELL shares are higher today. Get the complete picture here.
Here are the earnings estimates, what experts are saying and key items to watch.
Earnings Estimates: Analysts expect Dell to report third-quarter revenue of $27.13 billion, up from $24.13 billion in last year's third quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in seven of the past 10 quarters, including two straight quarters.
Analysts expect Dell to report third-quarter earnings per share of $2.47, up from $2.15 in the past year's third quarter.
The company has beaten analyst estimates for earnings per share in seven of the past 10 quarters, including in the most recently reported second quarter.
Guidance from the company calls for third-quarter revenue to be in a range of $26.5 billion and $27.5 billion and earnings per share to be in a range of $2.45 to $2.55.
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What Experts Are Saying: Bank of America analyst Wamsi Mohan expects a mostly in-line quarter from Dell with concerns about margins and memory costs.
The analyst reiterated a Buy rating and lowered the price target from $170 to $160.
"The key focus for investors will be margin resilience heading into C26 given immense increase in memory costs," Mohan said.
The analyst said Del will likely reduce its operating expenses to help offset memory increases, a move that could keep guidance in check.
"We are in early stages of AI adoption and tailwinds from PC refresh and AI PCs."
Morgan Stanley analyst Erik Woodring recently double downgraded Dell shares from Overweight to Underweight while also lowering the price target from $144 to $110.
The analyst expressed concern over Dell's margins, which could impact the valuation of the company. Rising costs of DRAM and NAND memory could significantly impact the company, according to the analyst.
Freedom Capital Markets Chief Market Strategist Jay Woods said the double downgrade could be weighing on the stock ahead of earnings. The market expert also highlighted the recent moves from Dell stock after earnings reports.
"Shares have traded lower after five of the last six reports, including four consecutively," Woods said in a weekly newsletter. "The average move has been a decline of -9.1%."
Woods said Dell stock is at a "very interesting pivot point" technically.
Key Items to Watch: A recent report said Dell has postponed the launch of "Project Maverick," an AI infrastructure project. The company will likely comment on this or be asked about it during the earnings call.
The first phase set for February 2026 has been postponed to May 2026, according to the report.
With the company betting on the future success of AI PCs, investors and analysts will want to hear more about how growth in the area is progressing.
Second-quarter financial results for the company saw the company's Servers and Networking segment post revenue growth of 69% year-over-year, while Commercial Client revenue was up only 2% year-over-year. These are the two biggest segments for the company based on overall revenue.
"We've now shipped $10 billion of AI solutions in the first half of FY26, surpassing all shipments in FY25," Dell Vice Chairman Jeff Clarke said after the second quarter results.
Clarke said demand for AI solutions was "exceptional" and helped boost the Servers and Networking segment.
The company raised its AI server shipment guidance for the fiscal year. Overall revenue and earnings per share guidance were also raised after second quarter results.
Investors and analysts will be closely watching to see if guidance is raised once again.
DELL Price Action: Dell stock is up 11.06% to $127.99 on Monday versus a 52-week trading range of $66.25 to $168.08. Dell shares are up 11.06% year-to-date in 2025.
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