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Dell Technologies (DELL)
NYSE:DELL
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Dell Technologies
(NYSE:DELL)
Select Model
Select Model
Rating:65Neutral
Price Target:
$135.00
▼(-9.81% Downside)
Dell's strong earnings call and fair valuation are significant positives, offsetting financial risks from high leverage and negative equity. Technical indicators suggest caution, but the company's strategic focus on AI and ISG growth supports a positive outlook.
Positive Factors
AI and ISG Growth
Strong growth in AI and ISG segments indicates Dell's strategic focus on high-demand areas, enhancing long-term revenue potential and market leadership.
Cash Flow Generation
Robust cash flow generation supports Dell's ability to invest in growth initiatives and manage financial obligations, ensuring long-term operational stability.
R&D Investment
Sustained investment in R&D, despite cost reductions, positions Dell to innovate and maintain competitive advantages in technology solutions.
Negative Factors
High Leverage
Significant leverage poses financial risks, potentially limiting Dell's flexibility to navigate economic downturns or invest in future growth opportunities.
Storage Revenue Decline
Declining storage revenue highlights challenges in maintaining market share in this segment, which could impact overall revenue growth if not addressed.
Consumer Revenue Decrease
A decrease in consumer revenue suggests potential issues in product appeal or market saturation, which could hinder growth in the consumer segment.
Dell Technologies (DELL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$90.03B
Dividend Yield1.3%
Average Volume (3M)6.52M
Price to Earnings (P/E)19.7
Beta (1Y)2.13
Revenue Growth10.68%
EPS Growth24.29%
CountryUS
Employees108,000
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)2.32
Shares Outstanding336,904,630
10 Day Avg. Volume5,864,045
30 Day Avg. Volume6,523,633
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)-48.66
Price to Sales (P/S)0.75
P/FCF Ratio38.59
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue1.07
Enterprise Value/Gross Profit5.13
Enterprise Value/Ebitda12.75
Forecast
1Y Price Target
$149.93Price Target Upside0.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
Dell Technologies Business Overview & Revenue Model
Company DescriptionDell Technologies Inc. designs, develops, manufactures, markets, sells, and supports information technology (IT) solutions, products, and services worldwide. The company operates through three segments: Infrastructure Solutions Group (ISG), Client Solutions Group (CSG), and VMware. The ISG segment provides traditional and next-generation storage solutions; and rack, blade, tower, and hyperscale servers. This segment also offers networking products and services that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes; attached software and peripherals; and support and deployment, configuration, and extended warranty services. The CSG segment provides desktops, workstations, and notebooks; displays and projectors; attached and third-party software and peripherals, as well as support and deployment, configuration, and extended warranty services. The VMware segment supports customers in the areas of hybrid and multi-cloud, modern applications, networking, security, and digital workspaces, helping customers to manage IT resource across private clouds and complex multi-cloud, multi-device environments. Dell Technologies Inc. also provides information security; and cloud software and infrastructure-as-a-service solutions that enable customers to migrate, run, and manage mission-critical applications in cloud-based IT environments. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas.
How the Company Makes MoneyDell Technologies generates revenue through several key streams, including the sale of personal computers (PCs), servers, and storage solutions. The company's hardware sales constitute a significant portion of its revenue, driven by both individual and enterprise customers. Additionally, Dell earns income from software and services, which include cloud computing, cybersecurity, and IT consulting. These services often come with recurring revenue models, such as subscriptions and maintenance contracts, providing a steady income. Dell also engages in partnerships with other technology firms, allowing for integrated solutions that enhance its product offerings and market reach. Strategic initiatives, such as acquisitions and investments in emerging technologies, further bolster its revenue potential and market competitiveness.
Dell Technologies Key Performance Indicators (KPIs)
Any
EBIT by Segment
Shows earnings before interest and taxes for each business segment, providing insight into the operational efficiency and profitability of different parts of the company.
Shows earnings before interest and taxes for each business segment, providing insight into the operational efficiency and profitability of different parts of the company.
Data provided by:
Main Street Data
Main Street DataDell Technologies Earnings Call Summary
Earnings Call Date:Aug 28, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 25, 2025
Earnings Call Sentiment Positive
The earnings call reflected significant positive trends, particularly driven by record revenue and strong growth in AI and ISG. However, challenges in storage revenue and traditional server demand in North America, along with a decline in consumer revenue, present areas of concern. Overall, the highlights, especially around AI growth and record achievements, outweigh the lowlights.Q2-2026 Updates
Positive Updates
Record Revenue and AI Growth
Dell reported record revenue of $29.8 billion, up 19% year-over-year. AI server shipments were a significant driver, with $5.6 billion in orders and $8.2 billion shipped, resulting in a backlog of $11.7 billion.
Strong ISG Performance
Infrastructure Solutions Group (ISG) revenue was a record $16.8 billion, up 44%. This marks 6 consecutive quarters of double-digit revenue growth, with servers and networking revenue hitting a record $12.9 billion, up 69%.
EPS and Cash Flow Achievements
Earnings per share increased by 19% to $2.32, marking a Q2 record. Cash flow from operations was $2.5 billion, driven by profitability and revenue growth.
R&D and Operational Efficiency
Operational expenses were down 4% while continuing to invest in R&D. Gross margin was $5.6 billion or 18.7% of revenue.
Strong Enterprise and Sovereign AI Demand
Enterprise orders grew sequentially in Q2, with double-digit growth across enterprise and sovereign opportunities. New NVIDIA RTX Pro 6000 AI Factory solutions saw strong interest.
Negative Updates
Storage Revenue Decline
Storage revenue was down 3% to $3.9 billion, with demand softer than anticipated, particularly in large accounts in North America.
Consumer Revenue Decrease
Consumer revenue within the Client Solutions Group (CSG) declined 7%, despite improved profitability due to better product positioning.
Challenges in Traditional Server Demand
North America traditional server demand was challenged, continuing the weakness observed in April. Federal spending was also down, impacting overall demand.
Company Guidance
During Dell Technologies' fiscal year 2026 second-quarter earnings call, the company provided updated guidance highlighting a robust performance driven by record AI shipments and revenue growth. Revenue reached a record $29.8 billion, a 19% increase year-over-year, with the ISG and CSG segments each growing 22%. Earnings per share also rose by 19% to $2.32, marking a Q2 record. Dell raised its AI server shipment guidance by $5 billion to $20 billion for the year, reflecting strong demand, particularly from enterprise and sovereign sectors. The company expects Q3 revenue between $26.5 billion and $27.5 billion, with ISG and CSG projected to grow by 13%. Dell increased its full-year revenue guidance to a range of $105 billion to $109 billion, with EPS expected to rise by 17% to $9.55 at the midpoint. The company anticipates improved profitability in the second half, driven by a favorable mix in traditional servers and Dell IP storage, alongside ongoing modernization efforts and cash flow generation.Dell Technologies Financial Statement Overview
Summary
Dell Technologies shows solid revenue growth and stable profitability, but faces challenges with high leverage and negative equity, posing financial risks. Cash flow generation is strong, yet cash management could be more consistent.Income Statement
Dell Technologies shows a solid revenue growth rate of 4.91% in the TTM, indicating a positive trajectory. The gross profit margin is stable at 21.21%, and the net profit margin is 4.84%, reflecting decent profitability. However, the EBIT and EBITDA margins are moderate, suggesting room for operational efficiency improvements.75
Positive
Balance Sheet
The balance sheet reveals a concerning negative stockholders' equity, leading to a high debt-to-equity ratio of -10.37 in the TTM. This indicates significant leverage and potential financial risk. The return on equity is also negative, highlighting challenges in generating returns for shareholders.40
Negative
Cash Flow
Dell's cash flow shows a strong free cash flow growth rate of 33.15% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.14, and the free cash flow to net income ratio is 0.65, reflecting adequate cash flow relative to earnings. However, the ratios suggest potential volatility in cash flow management.65
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 101.33B | 95.57B | 88.42B | 102.30B | 101.20B | 86.67B |
| Gross Profit | 21.18B | 21.25B | 21.07B | 22.69B | 21.89B | 20.14B |
| EBITDA | 8.51B | 9.59B | 8.89B | 7.66B | 12.02B | 9.79B |
| Net Income | 4.79B | 4.59B | 3.39B | 2.44B | 5.56B | 3.25B |
Balance Sheet | ||||||
| Total Assets | 89.18B | 79.75B | 82.13B | 89.61B | 92.73B | 123.42B |
| Cash, Cash Equivalents and Short-Term Investments | 8.14B | 3.63B | 7.37B | 8.61B | 9.48B | 9.51B |
| Total Debt | 28.69B | 24.57B | 25.99B | 29.59B | 26.95B | 41.45B |
| Total Liabilities | 91.94B | 81.13B | 84.26B | 92.64B | 94.31B | 115.39B |
| Stockholders Equity | -2.77B | -1.48B | -2.23B | -3.12B | -1.69B | 2.95B |
Cash Flow | ||||||
| Free Cash Flow | 4.86B | 1.87B | 5.92B | 562.00M | 7.51B | 9.32B |
| Operating Cash Flow | 7.48B | 4.52B | 8.68B | 3.56B | 10.31B | 11.41B |
| Investing Cash Flow | -1.95B | -2.21B | -2.78B | -3.02B | 1.31B | -460.00M |
| Financing Cash Flow | -1.93B | -5.82B | -7.09B | -1.63B | -16.61B | -5.95B |
Dell Technologies Technical Analysis
Positive
149.68
Price Trends
131.38
Positive
124.08
Positive
112.62
Positive
Market Momentum
3.06
Negative
74.31
Negative
87.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DELL, the sentiment is Positive. The current price of 149.68 is above the 20-day moving average (MA) of 130.44, above the 50-day MA of 131.38, and above the 200-day MA of 112.62, indicating a bullish trend. The MACD of 3.06 indicates Negative momentum. The RSI at 74.31 is Negative, neither overbought nor oversold. The STOCH value of 87.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DELL.
Dell Technologies Risk Analysis
Dell Technologies disclosed 38 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $23.65B | 20.93 | 120.10% | 1.76% | 3.45% | 9.69% | |
74 Outperform | $45.30B | 24.89 | 33.59% | 0.15% | 2.12% | ― | |
72 Outperform | $54.70B | 34.87 | -324.28% | 1.12% | 38.86% | 337.22% | |
66 Neutral | $24.96B | 9.91 | -209.75% | 4.34% | 3.11% | -3.54% | |
65 Neutral | $90.03B | 19.69 | -179.12% | 1.30% | 10.68% | 24.29% | |
65 Neutral | $28.16B | 210.44 | 10.55% | ― | 11.31% | -1.30% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
DELL
Dell Technologies
149.68
38.25
34.33%
HPQ
HP
26.70
-7.10
-21.01%
NTAP
NetApp
118.50
-2.09
-1.73%
STX
Seagate Tech
256.84
150.86
142.35%
WDC
Western Digital
130.59
80.48
160.61%
PSTG
Pure Storage
85.69
35.77
71.65%
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.