In fiscal third quarter 2026, Dell Technologies’ Infrastructure Solutions Group (ISG) posted revenue of $10.2 billion, a 24% year-over-year increase that outpaced company-wide growth. This performance was driven by customers accelerating migration of critical workloads to Dell’s cloud-enabled servers and hyperconverged systems. Dell reported a 35% rise in bookings for its PowerEdge portfolio, with enterprise clients in financial services and healthcare accounting for 45% of new contract volume. The result was margin expansion of 120 basis points in ISG, reflecting favorable mix and improved operational leverage as Dell ramps its next-generation disaggregated chassis design.

Dell’s AI server business continues to gain traction, with order volumes up 110% compared with the year-ago quarter. Systems optimized for generative AI inference and training—featuring Dell’s custom cooling modules and support for the latest GPU accelerators—represented one-third of total ISG revenue. Management highlighted a backlog of $28.8 billion at quarter end, the highest in Dell’s history, underscoring multi-quarter visibility into hardware demand. Dell also noted that nearly 60% of these commitments include multi-year support agreements and infrastructure services, positioning the company for recurring revenue growth through 2027.