Overview
- The company reported Q3 FY2026 non‑GAAP EPS of $0.84 and revenue of about $10.24 billion, roughly 123% year‑over‑year growth that beat earnings estimates but missed some revenue forecasts.
- Management raised guidance to $11 billion–$12.5 billion for Q4 and roughly $38.9 billion–$40.4 billion for full‑year FY2026, citing strong orders for AI‑optimized servers and higher semiconductor content per system.
- Long‑time SVP of worldwide sales Don Clegg stepped down in early May and a new chief revenue officer was appointed, prompting investor concern about sales continuity and execution.
- The stock swung from weakness after the leadership disclosures to a rally on Wednesday, May 20 when a semiconductor sector lift and optimism around Nvidia helped lift shares by roughly 7%–9%.
- Analysts remain divided with a consensus price target in the low‑$30s even as firms like Mizuho raised targets, and competition from Dell and HPE plus chip supply dynamics pose clear risks to sustaining margins and market share.