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Dell Technologies
(NYSE:DELL)
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Rating:73Outperform
Price Target:
$509.00
▲(12.74% Upside)
Action:Reiterated
Date:09/16/26
The score is supported by very strong earnings-call guidance and positive technical momentum. Offsetting these, the financial profile is held back by elevated balance-sheet risk (negative equity and sizable/rising debt), and valuation is not cheap (P/E ~30.5 with a low dividend yield).
Positive Factors
AI infrastructure demand
Record AI orders and backlog indicate strong customer demand for Dell’s infrastructure portfolio and create substantial forward revenue visibility. Broadening adoption across enterprises, neoclouds and sovereign customers supports a durable growth opportunity beyond a single customer or project cycle.
Negative Factors
Balance-sheet leverage
Persistent negative equity and rising debt reduce financial flexibility and make leverage signals structurally unfavorable. This capital structure can constrain investment choices and increase sensitivity to refinancing, interest and operating shocks even while Dell’s earnings and cash generation are improving.
Read all positive and negative factors
Positive Factors
Negative Factors
AI infrastructure demand
Record AI orders and backlog indicate strong customer demand for Dell’s infrastructure portfolio and create substantial forward revenue visibility. Broadening adoption across enterprises, neoclouds and sovereign customers supports a durable growth opportunity beyond a single customer or project cycle.
Read all positive factors
Dell Technologies Key Performance Indicators (KPIs)
Any
Gross Profit by Type
Highlights the profit generated from different product or service types, shedding light on which areas are most profitable and driving the company's bottom line.
Highlights the profit generated from different product or service types, shedding light on which areas are most profitable and driving the company's bottom line.
Data provided by:
The Fly
The FlyDell Technologies (DELL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$290.21B
Dividend Yield0.53%
Average Volume (3M)7.57M
Price to Earnings (P/E)26.1
Beta (1Y)2.01
Revenue Growth48.86%
EPS Growth152.40%
CountryUS
Employees97,000
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)17.49
Shares Outstanding315,433,200
10 Day Avg. Volume7,731,984
30 Day Avg. Volume7,565,889
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)-30.70
Price to Sales (P/S)0.67
P/FCF Ratio8.87
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue1.90
Enterprise Value/Gross Profit9.62
Enterprise Value/Ebitda15.64
Forecast
1Y Price Target
$596.75Price Target Upside32.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering21
EPS Forecast (FY)25.89
Revenue Forecast (FY)$194.58B
Dell Technologies Business Overview & Revenue Model
Company Description
Dell Technologies Inc. is a worldwide technology leader that designs, develops, manufactures, markets, sells, and provides support for a broad spectrum of information technology (IT) solutions, products, and services. The company's business activi...
How the Company Makes Money
Dell primarily makes money by selling hardware, software-related infrastructure solutions, and services through a mix of direct sales, channel partners, and strategic alliances. Key revenue streams include: (1) Client Solutions Group (CSG): revenu...
Dell Technologies Earnings Call Summary
Earnings Call Date:Sep 01, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Dec 01, 2026
Earnings Call Sentiment Positive
The call was strongly optimistic. Dell reported record revenue, earnings, AI orders, backlog, cash flow and shareholder returns, broad growth across infrastructure, storage and PCs, significant share gains, and materially raised full-year guidance. The main challenges were widespread supply constraints, pricing and component-cost inflation, some customer purchasing deferrals, early-stage commercialization of Lightning, and expected moderation in CSG operating margin. Highlights significantly outweighed lowlights.Positive Updates
Record Revenue and Earnings
Fiscal Q2 revenue reached a record $47 billion, up 58% year over year, while diluted earnings per share reached a record $7.04, up 203%.
Negative Updates
Supply Constraints Across Critical Components
Management said demand is outpacing supply and that Dell remains supply constrained. The most significant constraints were described as DRAM and NAND, with additional shortages or constraints involving CPUs, disk drives, leading-node products, mature-node components, ABF substrate, T-Glass and optical components.
Read all updates
Q2-2027 Updates
Positive
Negative
Record Revenue and Earnings
Fiscal Q2 revenue reached a record $47 billion, up 58% year over year, while diluted earnings per share reached a record $7.04, up 203%.
Read all positive updates
Company Guidance
For Q3, Dell expects revenue to be $49 billion at the midpoint, up roughly 80% year-on-year, ISG to grow roughly 145% supported by $19 billion in AI server revenue, CSG revenue to be up roughly 15%, operating expenses to be down low single digits sequentially, operating income to grow roughly 120%, ISG operating income rate to be up just over 1 point year-over-year, CSG operating income rate to moderate to roughly 6%, diluted share count to be approximately 651 million shares, and diluted non-GAAP earnings per share to be $6.50, up over 150% at the midpoint; for the full year, revenue is guided to $192 billion at the midpoint, up roughly 70%, diluted non-GAAP EPS is expected to be $25.50, up approximately 150%, ISG is expected to grow roughly 120%, AI server revenue is expected to be up 3x year-over-year to $74 billion, traditional servers to grow just over 100%, storage to be up in the mid-teens, CSG revenue to grow in the mid-teens, operating expenses to be approximately 8% of revenue, operating income to grow approximately 120% with over 2 points of rate improvement year-over-year, and I&O is expected to be between $1.4 billion and $1.5 billion.Dell Technologies Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
34
Negative
Cash Flow
67
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 151.20B | 113.54B | 95.57B | 88.42B | 102.30B | 101.20B |
| Gross Profit | 29.93B | 22.71B | 21.25B | 21.07B | 22.69B | 21.89B |
| EBITDA | 18.40B | 11.85B | 9.59B | 8.89B | 7.66B | 12.02B |
| Net Income | 11.38B | 5.94B | 4.59B | 3.39B | 2.44B | 5.56B |
Balance Sheet | ||||||
| Total Assets | 127.39B | 101.29B | 79.75B | 82.13B | 89.61B | 92.73B |
| Cash, Cash Equivalents and Short-Term Investments | 11.57B | 11.53B | 3.63B | 7.37B | 8.61B | 9.48B |
| Total Debt | 34.47B | 31.50B | 24.57B | 25.99B | 29.59B | 26.95B |
| Total Liabilities | 128.82B | 103.76B | 81.13B | 84.26B | 92.64B | 94.31B |
| Stockholders Equity | -1.43B | -2.47B | -1.48B | -2.23B | -3.12B | -1.69B |
Cash Flow | ||||||
| Free Cash Flow | 8.56B | 8.55B | 1.87B | 5.92B | 562.00M | 7.51B |
| Operating Cash Flow | 12.15B | 11.19B | 4.52B | 8.68B | 3.56B | 10.31B |
| Investing Cash Flow | -3.72B | -2.06B | -2.21B | -2.78B | -3.02B | 1.31B |
| Financing Cash Flow | -5.07B | -1.46B | -5.82B | -7.09B | -1.63B | -16.61B |
Dell Technologies Technical Analysis
Negative
451.50
Price Trends
512.21
Negative
465.97
Negative
321.59
Positive
Market Momentum
-18.77
Positive
38.04
Neutral
17.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DELL, the sentiment is Negative. The current price of 451.5 is below the 20-day moving average (MA) of 523.68, below the 50-day MA of 512.21, and above the 200-day MA of 321.59, indicating a neutral trend. The MACD of -18.77 indicates Positive momentum. The RSI at 38.04 is Neutral, neither overbought nor oversold. The STOCH value of 17.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DELL.
Dell Technologies Risk Analysis
Dell Technologies disclosed 40 risk factors in its most recent earnings report. Dell Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Dell Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | $217.40B | 53.70 | 30.78% | ― | 32.57% | 24.40% | |
74 Outperform | $42.32B | 30.01 | 113.67% | 0.97% | 12.15% | 24.60% | |
74 Outperform | $75.25B | 28.07 | 10.87% | 1.01% | 26.63% | 130.65% | |
73 Outperform | $290.21B | 26.10 | -574.57% | 0.53% | 48.86% | 152.40% | |
73 Outperform | $128.64B | 11.98 | 113.77% | 0.16% | 20.66% | 292.80% | |
69 Neutral | $30.34B | 12.69 | -727.30% | 3.57% | 8.67% | -4.70% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
DELL
Dell Technologies
456.44
295.94
184.39%
HPQ
HP
33.64
7.07
26.63%
NTAP
NetApp
215.48
100.07
86.70%
WDC
Western Digital
343.67
217.24
171.82%
ANET
Arista Networks
172.37
15.56
9.92%
HPE
Hewlett Packard Enterprise
56.69
32.94
138.66%
Dell Technologies Corporate Events
Executive/Board Changes
Dell Technologies Announces New Chief Legal Officer
Neutral
Oct 21, 2026
Dell Technologies announced a leadership change in its legal department following the October 19, 2026 decision by Executive Vice President, General Counsel and Secretary Richard Rothberg to retire as chief legal officer, effective February 1, 202...
Business Operations and StrategyPrivate Placements and Financing
Dell Technologies Completes $5 Billion Senior Notes Offering
Positive
Sep 15, 2026
Dell Technologies’ subsidiaries completed on September 15, 2026 a $5 billion public offering of senior unsecured notes, with staggered maturities in 2029, 2031, 2033 and 2037 and coupons ranging from 5.100% to 5.900%. The notes, guaranteed b...
Business Operations and StrategyPrivate Placements and Financing
Dell Technologies Issues $5 Billion Senior Notes Offering
Positive
Sep 10, 2026
On September 9, 2026, Dell Technologies Inc., Dell International L.L.C. and EMC Corporation entered into an underwriting agreement to issue $5 billion in senior unsecured notes with maturities between 2029 and 2037 and coupons ranging from 5.100% ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.