Dell Q3 FY1/25 Earnings Review

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Probably Not All Over.

By Alex King, CEO, Cestrian Capital Research, Inc.

From the stock price reaction today you could be forgiven for thinking something terrible has happened to Texas' finest. A glance at the numbers, however, may disabuse you of such a notion. Revenue growth accelerated a little, gross margins are unchanged, cashflow margins are weak vs. last year but unchanged from last quarter. The balance sheet remains 2x levered which is unstressful.

Dell ought to be an ongoing spending beneficiary of the rush to re-arm the datacenter and, later, of the capex refresh that I expect to roll through workgroup servers and client-side devices as the current generation proves inadequate to handle next-generation software with its growing element of AI processing requirements. This spending will slow in the end, yes; and there are many competitors, yes. But I think the company and the stock can live with these risks for now.

Here's the headlines.

Financial Summary

Now, for our paying subscribers of all tiers here, we go on to look at financial fundamentals, valuation analysis, our rating and price targets.