Dell was facing subdued expectations for the October quarter. The company warned in September, just weeks after reporting second-quarter results, that it was seeing "further softening" in global demand.
Net profit in the fiscal third quarter ended October 31 fell 5 percent to $727 million, or 37 cents a share, from $766 million, or 34 cents a share, in the year-ago period. Per share earnings rose as Dell bought back shares.
The average analyst estimate was 31 cents a share, according to Reuters Estimates.
Revenue in the period fell 3 percent to $15.16 billion, below the average analyst estimate of $16.3 billion, according to Reuters Estimates.
The company said in a statement that it believes global IT demand will continue to be "challenging."
"The company will continue to incur costs as it realigns its business to improve competitiveness, reduce headcount in certain areas and invest in infrastructure, growth opportunities and acquisitions," it added.
Many analysts see Dell as vulnerable to the global economic slowdown due to the company's sizable exposure to a weakening PC market.
Dell has been shedding jobs, cutting costs and retooling its business to adjust for slower demand. It has nearly completed its plan to cut 8,900 jobs.
The company's share of global PC shipments slipped below 14 percent in the calendar third quarter, according to industry tracker IDC.
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