A：Dell Technologies' highlights for the third quarter include a record revenue of $27 billion, up 11% year over year, and an earnings per share (EPS) up to $2.69. The quarter set records for AI server orders and revenue. AI server demand remained strong, with $12.3 billion in orders booked in the quarter and year-to-date orders reaching $30 billion. The company also had strong growth in traditional servers and storage, and international and North American markets. Additionally, Dell Technologies ended the quarter with a record backlog of $18.4 billion and continued robust cash flow and capital returns for shareholders.

A：Dell's AI business experienced significant growth, with AI server demand remaining exceptionally strong, leading to $12.3 billion in orders booked in the quarter and year-to-date orders reaching $30 billion. AI server revenue was $5.6 billion in the quarter, with a total of $15.6 billion year to date. The business ended the quarter with a record backlog of $18.4 billion and a growing diverse customer base, including expansion across major cloud providers, tier II cloud services providers, and sovereign states.

A：Dell's traditional server business showed overall demand growth with a focus on high-performing compute configurations, recording double-digit growth. Storage revenue, although down 1% year over year, saw continued strong demand for Dell's IP portfolio, with all-flash arrays delivering double-digit growth and PowerStore achieving six consecutive quarters of double-digit growth. PowerStore demand has now grown for seven consecutive quarters with six quarters of double-digit growth.

A：Dell's CSG segment saw revenue increase by 3%, with commercial up 5%. International growth accelerated to double digits year over year, and North America also showed improvement. Demand for small and medium businesses remained strong with P&L and commercial demand growth over the past four consecutive quarters. Consumer revenue, however, declined, but the demand environment turned to growth as the company refocused on its role in the market. Commercial profitability was stable while consumer and education areas were competitive.

A：Dell is well positioned across its commodity basket with inflationary conditions in the quarter being deflationary. The outlook for Q4 is largely unchanged from the last quarter. The company is confident in its ability to secure supply and adjust pricing as needed, and it will continue to leverage its world-class supply chain to deliver the best outcomes for customers and shareholders.

A：Dell's execution in the third quarter was strong, resulting in record revenue and EPS, along with strong cash generation and above-trend capital return. Total revenue increased 11% to $27 billion, and the company experienced robust growth across all segments with improved profitability in AI and storage. AI momentum remained exceptional with record orders, backlog, and a growing diverse customer base, supported by Dell's end-to-end capability in AI infrastructure.

A：The ISG operating income growth was primarily driven by higher revenue and a sequential improvement in the operating income rate to 12.4% of revenue. This improvement was due to the mix of AI servers, better AI server margins, and stronger profitability from storage.

A：CSG revenue increased by 3% to $12.5 billion, with commercial revenue growing for five consecutive quarters at 5% to $10.6 billion, while consumer revenue declined script to $1.9 billion. CSG operating income was $0.7 billion or 6% of revenue, with commercial profitability stable and consumer profitability improving due to demand returning to growth.

A：The company had a strong cash quarter with cash flow from operations of $1.200 billion, ending the quarter with $11.3 billion in cash and investments, up $1.6 billion sequentially. The core leverage ratio is 1.6x, and the company returned $1.600 billion of capital to shareholders, including share purchases and dividend payments.

A：The company expects to ship approximately 4 billion of AI servers in the upcoming quarter, which would bring full year shipments to over 2 billion, representing year-over-year growth.

A：ISG and CG combined are expected to grow 34% at the midpoint, with ISG growing in the mid-teens and CSG growing in the low to mid-single digits.

A：Operating income is expected to be up sequentially, with a continued improvement in the operating income rate. The diluted share count is expected to be roughly 672 million shares, and the non GAAP tax rate is anticipated to be 18%. The diluted non GAAP EPS is expected to be $3.50 plus or minus 10 cents, up 31% at the midpoint.

A：The preliminary outlook for the upcoming fiscal year includes revenue growth supported by multiple levers, such as leveraging the go-to-market engine, improving gross profit, scaling operating expenses, and ongoing share repurchases. The company is highly confident in its ability to drive EPS growth and deliver strong results for the upcoming fiscal year.

A：The company is addressing these challenges by focusing on securing parts and managing the supply mix to minimize the impact on customers. They are leveraging their direct model to react to market signals quickly, price accordingly, and reprice when needed. The company's strategy includes adjusting configurations, managing availability, and optimizing the mix across various product categories.

A：The AI business growth is strong and has been fueled by the company's conviction and guidance increase from Ed to Ed Billion. Part of this growth is predicated on Neo Clouds' ability to procure financing, with a focus on opportunities within the Neo Clouds, sovereign entities, and enterprise sectors.

A：The Q4 guidance of $9.4 billion signifies a $25 billion outlook for the full fiscal year 25, reflecting a 150% increase over the previous year. This growth indicates the strong demand for compute power and token generation, which is reflected in the company's 5/4 pipeline and the significant orders and backlog reported.

A：In response to the extraordinary times and the rise in input costs, the company has taken extraordinary actions to mitigate the impact. It has a direct relationship with partners involved in DRAM and bandwidth manufacturing, as well as capacity agreements, providing a stable foundation during these unprecedented situations. The company has the flexibility to reprice, adjust quotes, reconfigure products, and alter demand generation strategies to offset these cost pressures.

A：During Covid, the company demonstrated its ability to navigate material shortages and increased costs, a skill that is being applied to the current situation. It has lessons learned from that time and is actively managing the situation with a sense of urgency, leveraging its strong supply chain and engaging in frequent pricing calls to achieve better outcomes.

A：The sequential improvement in ISG margins to 12.4% was driven by better operating margins due to a change in product mix, specifically the growth of the daylight storage portfolio and power store with double-digit growth. Pricing discipline and focus on product mix improvements also contributed. Q4 AI server revenue of $9.4 billion is expected to significantly impact the P&L, with gross margins likely to remain consistent with Q3 levels. The revenue is expected to grow slightly ahead of normal sequentials, which should result in an uptick in the utilization rate in Q4.

A：The double-digit demand growth in traditional servers is attributed to data center modernization, consolidation, and the upgrade cycle of older generation servers.

A：There is a significant opportunity to upgrade and modernize older server models, which constitute a substantial portion of the installed base that was shipped many years ago.

A：The impact of commodity cost increases on the supply chain involves managing commodity scarcity and ensuring an adequate supply of parts. The company aims to procure necessary materials and price them accordingly. The supply chain team focuses on not running out of parts and adjusting prices commensurate with the value of the materials.

A：The strategy for dealing with the scarcity of parts includes adjusting demand rapidly, using various tools like reconfigurations, and maintaining the ability to price effectively in a large transactional business model. The company believes its direct manufacturer and direct seller model provides an advantage in navigating these challenges and working towards better outcomes for the company, shareholders, and customers.

A：The company expects the storage business to achieve high single-digit growth in the fourth quarter, which is a positive sign. For the upcoming fiscal year, although there are commodity headwinds, the company's strategy to pivot towards Dell IP storage is paying off, with an increasing mix in revenue dollars and improving margins across the portfolio. The company is focusing on growth in the all-flash portion of the portfolio and the buyer base for Dell storage.

A：The raised forecast for AI revenue is attributed to factors including new orders and existing orders occurring earlier, a growing backlog, customer readiness, supply chain efficiency in obtaining materials, customer acceptance, and the successful execution of winning new opportunities across the Neo Cloud, sovereign, and enterprise customer bases.

A：Purchase commitments show no discernible change in pattern or in relation to inventory levels. Sequentially, inventory values have been reduced, indicating an adjustment. Year to date, inventory values are roughly flat despite a significant increase in demand. The company's normal supply chain procurement processes are in effect, and there is no indication of a change from the last quarter. These trends suggest that the company is managing inventory effectively and positioning itself for future profitability.

A：The AI server business is expected to maintain a consistent mid single-digit operating margin. While the exact mix of deals may cause some to be slightly lower or higher, the goal is to stay within the mid single digits. The company aims to win deals judiciously while managing profitability and ongoing activities. Dollar accretive deals are also emphasized, with cash flow being a forefront concern.

A：The PC business is a scale business, and share growth is anticipated in non-premium segments. The company's recent focus on strengthening its position in commercial and education sectors, along with increased activity in the consumer business, is showing encouraging results. International growth has accelerated, and consumer demand has returned to growth for the first time in three years. The company plans to refine its cost position and product strategy to ensure growth without sacrificing profitability.

A：The company achieved record results in revenue and EPS, showcasing disciplined execution and a strong business model. AI momentum is described as exceptional, with record orders in Q3 and $30 billion booked through the first three quarters of the year. The customer base and pipeline are expanding, positioning the company well to capitalize on increasing demand for AI solutions. Additionally, improved profitability and strong cash generation enabled capital return to shareholders, setting the company up for a strong finish to the year and long-term value creation.