Dell Technologies has reported a record revenue of $27 billion for the quarter ending October 31, reflecting an 11 percent increase year-over-year. The company attributes this growth to its successful AI infrastructure business, which generated an impressive $12.3 billion in AI server orders during the quarter, contributing to a total of $30 billion in orders year-to-date. According to Dell’s Vice Chairman and Chief Operating Officer Jeff Clarke, the company’s strong performance is driven by its ability to deliver tailored high-performance solutions and exceptional global support. The Infrastructure Solutions Group, which is Dell’s largest segment, achieved a remarkable $14.1 billion in revenues, with server and networking revenues increasing by 37 percent year-over-year. Meanwhile, Dell’s Client Solutions Group added $12.5 billion in revenues, with commercial PC sales showing a 5 percent increase. Interim CFO David Kennedy noted that the company is raising its AI shipment guidance to approximately $25 billion, a 150 percent increase from last year, and forecasts a total revenue of $111.7 billion for the fiscal year 2026.
HP Inc. has announced plans to cut between 4,000 and 6,000 jobs globally by the end of fiscal year 2028 as part of a significant restructuring initiative aimed at enhancing productivity through artificial intelligence. This decision reflects the company’s commitment to adopting AI technologies, which CEO Enrique Lores believes will fundamentally reshape the workforce. The layoffs will impact various departments, including product development, internal operations, and customer support. While HP anticipates annual savings of approximately $1 billion from this restructuring, it will incur costs of about $650 million during the process. Despite a reported increase in net revenue of 3.2% for fiscal 2025, profit forecasts are below analyst expectations.
HP CEO Enrique Lores has warned of an impending memory shortage that is expected to lead to higher prices in the second half of the next fiscal year. During a recent earnings call, Lores noted that while the company has seen a sixth consecutive quarter of revenue growth, with fourth-quarter net revenue rising by 4.2 percent to $14.6 billion, challenges loom ahead. He mentioned that HP’s internal use of AI PCs has resulted in a 16 percent increase in productivity, reflecting the strong demand for these devices, which accounted for 30 percent of shipments in the latest quarter. Despite this positive momentum, Lores indicated that the company anticipates a temporary impact from the memory shortage, which they plan to mitigate through strategic actions, such as qualifying new suppliers and optimizing product configurations. HP’s total sales for the fiscal year reached $55.3 billion, a 3.2 percent year-over-year increase, underscoring the need for proactive measures to address future supply chain challenges.
Why do we care?
AI is reshaping the hardware market, and not in ways that help SMBs. Dell’s record results are almost entirely tied to AI servers. That’s where the margin is, and that’s where OEM attention is going. Meanwhile, HP is cutting thousands of jobs under the banner of AI productivity. That tells you vendors are going lean, automating internally, and shifting more support burden onto partners like you.
And then there’s the kicker: a memory shortage coming in the back half of next year. If that hits, PC pricing is going up right when your customers already have to refresh for Windows 11. There’s no version of this where waiting saves your clients money.
So the takeaway is simple: don’t hope for a better refresh cycle later. It’s not coming. You need to get ahead of this now—start planning migrations, communicate the pricing risk, and make sure devices are spec’d for the next several years. And expect vendor support to get thinner, not better.
If you let customers delay, you’ll be stuck doing security support on outdated, underpowered machines with rising component costs. If you get them modernized earlier, you avoid the squeeze. This is a “move before the market tightens” moment.