DELL Stock Ahead of Earnings: Spark AI Predicts What’s Coming

Dell Technologies (DELL) is gearing up to report first-quarter earnings after the bell on May 29, and all eyes are on whether the tech giant can keep its winning streak alive. Wall Street expects earnings per share of $1.71 on revenue of $23.17 billion, marking year-over-year growth of 34.6% and 4.2%, respectively. That kind of earnings growth, far outpacing revenue, hints at strong operating leverage, a good sign in any investor’s playbook.

DELL has developed a habit of crushing expectations. It has beaten earnings estimates for 12 consecutive quarters, and with a growing backlog of AI server orders, the company is poised for what could be a defining moment in its evolution. Dell recently revealed servers built with Nvidia’s (NVDA) new Blackwell chips, and management is already projecting $15 billion in AI server shipments for fiscal 2026. The company currently has a $9 billion AI server backlog, indicating that demand is real and growing.

‘Sparks’ Weighs in on Dell

Behind the scenes, Spark, TipRanks’ AI analyst, gives DELL an “Outperform” rating with a score of 70. Spark likes what it sees in Dell’s Infrastructure Solutions Group (ISG), which has posted 22% revenue growth and a record $6.6 billion in server and networking sales. Dell’s AI business hit $10 billion last year, with solid order and shipment momentum. The company’s full-year guidance calls for revenues of up to $105 billion and EPS growth of 14%—strong numbers by any measure.

Still, not everything’s perfect in Round Rock. Dell’s Client Solutions Group (CSG), the consumer-facing side of the business, continues to lag. Consumer revenue fell 12% last quarter, and aggressive pricing in a competitive market has weighed on margins. Plus, tariff risks and macroeconomic uncertainty haven’t gone away.

_{Dell’s AI-fueled Infrastructure Solutions Group is climbing, while its consumer segment continues to shrink, revealing a tale of two businesses. Source: Main Street Data}

Financially, Dell appears to be a paradox: It has healthy cash flows and rising EPS, yet it also has negative equity and a high debt load. It’s a balancing act, but not a new one for Dell. Technically, the stock’s momentum is strong, trading above key moving averages and signaling bullish sentiment, though its RSI (Relative Strength Index) suggests it may be nearing overbought territory.

Options traders are pricing in a 9% move after earnings, but history says that Dell tends to surprise, and not just by a little. Whether it’s up or down is anyone’s guess, but Spark is leaning optimistic.

So, is DELL a buy? Spark says yes, with caution. Later today, after trading hours, the market will have its say, too.

Is DELL a Good Buy?

According to the Street’s analysts, Dell Technologies is considered a Strong Buy. The average DELL stock price target is $133.56, implying a 17.39% upside.

See more DELL analyst ratings