Dell Lowers Annual Sales Forecast on Weak Server Demand

Nico Grant (Bloomberg) -- Dell Technologies Inc. lowered its annual sales forecast, signaling that geopolitical and trade tensions have dented corporate demand for servers.

Adjusted sales will be $91.8 billion to $92.5 billion for fiscal year 2020, Dell Chief Financial Officer Tom Sweet said Tuesday during a conference call with analysts. The company said in August that revenue would be $93 billion to $94.5 billion in the fiscal year. Shares fell more than 4% in extended trading.

Earlier, Dell reported adjusted revenue rose 1.2% to $22.9 billion in the fiscal third quarter, just missing analysts’ average estimate of $23 billion.