What Wall Street Is Saying About DELL Stock Post Q1 Earnings

Dell Technologies (DELL) released its first-quarter earnings for FY26, and Wall Street is taking notice. The tech giant impressed investors with surging demand for AI-optimized servers and raised its full-year profit outlook. Following the report, several analysts have updated their price targets and shared fresh takes on where Dell stock might be headed next.

Morgan Stanley Raises Price Target on DELL Stock

Following the results, Morgan Stanley raised its price target on Dell from $126 to $135 while keeping a Buy rating. Analyst Erik Woodring pointed to strong AI server demand helping offset softness in the enterprise. Notably, Morgan Stanley sees Dell’s second-half guidance as conservative, placing its EPS estimate 15 cents above the midpoint of the $9.40 forecast.

Additionally, Woodring cited a potential upside to earnings per share (EPS) in the second half of the year. This optimism is driven by stronger-than-expected demand for AI servers and steady storage margins. However, for a more bullish stance, the firm says it would need clearer signs that AI-driven sales are gaining meaningful traction, something it expects will take more time to materialize.

Barclays Keeps a Measured View on Dell

Likewise, five-star-rated analyst Tim Long at Barclays maintained his Hold rating on Dell and raised the price target to $123 from $116.

Long praised Dell’s strong foothold in the AI server market but noted that converting orders into revenue has been inconsistent. He attributes this to the ongoing transition to the Blackwell (BW) platform and delays in rack-scale deployments. Furthermore, Long highlighted that Dell has yet to achieve significant improvements in gross margins or growth in storage and services tied to its AI business.

In addition to the AI server market challenges, Long pointed out that traditional servers and storage are likely to weaken in the upcoming quarter. He also highlighted ongoing softness in the PC market, further contributing to the uncertainty surrounding Dell’s financial outlook for the second half of the fiscal year.

Is DELL Stock a Good Buy Now?

According to TipRanks, DELL stock has received a Strong Buy consensus rating, with nine Buys and one Hold assigned in the last three months. The average Dell share price target is $132.50, suggesting a potential upside of 16.6% from the current level.

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