Dell Technologies (DELL) is scheduled to announce its results for the third quarter of Fiscal 2026 after the market closes on Tuesday, November 25. While the company is witnessing solid demand for its artificial intelligence (AI) servers, it is seeing subdued sales in the client solutions group (CSG), which includes PC sales to enterprises. Also, there are concerns about margin pressures due to higher memory costs. According to TipRanks’ Options Tool, options traders expect about a 9.35% move in either direction in DELL stock in reaction to Q3 FY26 results. This implied move is higher than DELL stock’s average post-earnings move (in absolute terms) of 6.98% over the past four quarters.
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Wall Street expects Dell to report earnings per share of $2.47 for Q3 FY26, reflecting a 16% year-over-year growth. Revenue is expected to rise 11.3% to $27.13 billion.
Analysts’ Views Ahead of Dell’s Q3 Earnings
Heading into Q3 FY26 results, Bank of America Securities analyst Wamsi Mohan reduced his price target for Dell to $160 from $170 and reiterated a Buy rating. The 5-star analyst thinks that investors will mainly focus on margin resilience heading into calendar year 2026 amid the significant rise in memory costs. Mohan’s cost analysis indicates that higher DRAM/NAND prices will impact Dell’s Fiscal 2027 gross margin, operating margin, and EPS by 129 basis points (bps), 76bps, and $0.65, respectively.
Meanwhile, Mohan expects Dell’s Q3 results to be in line with the guidance and the Street’s expectations, with “little to no impact” from higher DRAM and NAND prices due to the timing of inventory. He expects Q4 FY26 operating margin and EPS to be impacted by 56 bps and $0.01, respectively, as the company is expected to adjust pricing and reduce its operating expenses to offset higher memory costs. Overall, Mohan is bullish on Dell as he believes that the company is in the “early stages of AI adoption.” He expects the company to gain from tailwinds related to PC refresh and AI PCs.
Meanwhile, Morgan Stanley analyst Erik Woodring double-downgraded Dell stock from Buy to Sell and lowered the price target from $144 to $110. The top-rated analyst views Dell as one of the “hardest hit stocks” from increased memory costs in his original equipment manufacturers (OEM) coverage.
AI Analyst Is Cautious on DELL Stock Ahead of Q3 Print
Interestingly, TipRanks’ AI Analyst has assigned a Neutral rating to DELL stock with a price target of $129, indicating 5.30% upside potential. The AI analyst’s rating reflects Dell’s favorable insights from the earnings call and robust revenue growth, particularly in the AI and ISG (Infrastructure Solutions Group) segments. However, high leverage and negative equity on the balance sheet pose financial risks.
Also, the AI analysis noted that technical indicators suggest bearish momentum, and valuation metrics indicate a fair but not compelling valuation.
Is DELL Stock a Good Buy Now?
Currently, Wall Street has a Moderate Buy consensus rating on Dell Technologies stock based on 12 Buys, four Holds, and one Sell recommendation. The average DELL stock price target of $167.14 indicates 36.4% upside potential. DELL stock has risen 6.3% year-to-date.
