Question · Q3 2026
Michael Eng followed up on commodity cost recovery, asking if Dell expects benefits from strategically purchased commodities and for how long, and if longer-term commercial contracts might inhibit pricing adjustments in response to rising costs.
Answer
COO Jeff Clarke stated that Dell honors existing contracts but emphasized that the current situation involves both commodity cost increases and scarcity. He detailed Dell's unique ability as a direct manufacturer to adjust pricing, reconfigure products, and redirect demand faster than competitors, leveraging lessons from COVID and tariffs to achieve better than normal recovery rates, amplified by part scarcity.