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Dell Technologies Inc. (NYSE:DELL) Showcases Strong Earnings Per Share in Q3 2025

  • Earnings Per Share (EPS) of $2.15 exceeded estimates, indicating robust performance.
  • Revenue reached $24.37 billion, marking a 9.5% year-over-year growth despite falling short of expectations.
  • Despite financial challenges, Dell's price-to-earnings (P/E) ratio and earnings yield reflect investor confidence and profitability.

Dell Technologies Inc. (NYSE:DELL) is a prominent player in the computer technology industry, known for its wide range of products and services, including personal computers, servers, and IT infrastructure solutions. The company competes with other tech giants like HP Inc. and Lenovo. On November 26, 2024, Dell reported its earnings for the third quarter of 2025, showcasing a strong performance in terms of earnings per share (EPS).

Dell's EPS for the quarter was $2.15, surpassing the estimated $2.04. This represents a 4.37% positive surprise against the Zacks Consensus Estimate of $2.06. Compared to the previous year's EPS of $1.88, Dell has shown significant growth. This consistent outperformance in EPS over the past four quarters highlights Dell's ability to manage its operations effectively and deliver value to its shareholders.

Despite the impressive EPS, Dell's revenue for the quarter was $24.37 billion, slightly below the estimated $24.67 billion. This shortfall resulted in a negative surprise of 0.79% against the Zacks Consensus Estimate of $24.56 billion. However, the revenue still marked a 9.5% increase from the $22.25 billion reported in the same period last year, indicating a positive growth trajectory.

Dell's financial metrics provide further insight into its market position. The company's price-to-earnings (P/E) ratio is approximately 25.26, suggesting that investors are willing to pay $25.26 for every dollar of earnings. The price-to-sales ratio is about 1.12, indicating that investors pay $1.12 for each dollar of sales. These ratios reflect investor confidence in Dell's earnings potential and sales performance.

However, Dell faces some financial challenges. The company has a negative debt-to-equity ratio of -8.47, indicating more liabilities than equity. Additionally, the current ratio of approximately 0.72 suggests potential difficulties in covering short-term liabilities with short-term assets. Despite these challenges, Dell's earnings yield of about 3.96% offers a return on investment for shareholders, reflecting the company's ability to generate profits.