Dell Technologies (DELL) AI Stock Analysis

• Market Cap: $89.09B
• Dividend Yield: 1.5%
• Average Volume (3M): 5.24M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 2.08
• Revenue Growth: 7.68%
• EPS Growth: 27.73%
• Country: US
• Employees: 108,000
• Sector: Technology
• Sector Strength: 93
• Industry: Computer Hardware
• EPS (TTM): 1.55
• Shares Outstanding: 339,719,020
• 10 Day Avg. Volume: 4,869,870
• 30 Day Avg. Volume: 5,237,825
• PEG Ratio: 38.48
• Price to Book (P/B): -27.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.43
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 4.81
• Enterprise Value/Ebitda: 2.75
• 1Y Price Target: $139.07
• Price Target Upside: 7.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 70 Outperform
• Price Target: $128.00 ▼(-0.74%Downside)

Dell Technologies' stock is bolstered by strong technical indicators and positive earnings call sentiment. Financial performance is a mixed bag, with strengths in revenue growth and cash flow offset by balance sheet concerns. Valuation is moderate, making the stock reasonably attractive, but not a standout in its sector. The absence of significant corporate events leaves the focus on core financial and market performance.

Positive Factors

AI Growth

DELL can gain share of overall IT budgets as AI grows.

Financial Performance

Dell's capital return strategy includes significant share repurchases and dividend increases, reflecting confidence in financial health.

Negative Factors

Government Spending

Dell shares came under pressure following reports that the Federal government is looking for opportunities to cut costs.

Margin Pressure

Greater AI server mix means added margin pressure.

Dell Technologies Business Overview & Revenue Model

Company Description

Dell 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 Money

Dell Technologies makes money primarily through the sale of its hardware products, such as personal computers, laptops, and servers, which constitute a significant portion of its revenue. The company also generates revenue from its infrastructure solutions group that offers enterprise-level data storage and network solutions. Additionally, Dell Technologies provides a variety of IT and business services, including cloud services, cybersecurity solutions, and enterprise support services. These services are often offered through long-term contracts and partnerships with other technology providers. The company's focus on direct sales, especially through its online platform, and strategic partnerships with businesses and governmental organizations also play a crucial role in its revenue generation. Furthermore, Dell Technologies benefits from a strong global presence and its ability to offer end-to-end solutions that cater to both individual consumers and large enterprises.

Dell Technologies Financial Statement Overview

Summary

Dell Technologies exhibits solid revenue growth and profitability with a notable increase in free cash flow, but faces challenges with high leverage and negative stockholders' equity. The income statement reflects strong revenue growth and a stable profitability level, while the balance sheet reveals financial stability concerns due to high debt. Cash flow indicates efficient cash conversion, albeit with potential risks from reliance on free cash flow.

Income Statement

Dell Technologies shows strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 1.19% compared to the previous annual period. The gross profit margin stands at 22.11%, and the net profit margin is 4.75%, indicating a stable profitability level. However, the EBIT margin of 6.71% and EBITDA margin of 9.36% suggest room for improvement in operational efficiency.

Balance Sheet

The balance sheet reveals high leverage, as seen in the negative stockholders' equity and a debt-to-equity ratio that cannot be calculated due to negative equity. The return on equity (ROE) is also affected by the negative equity. Despite these concerns, the company maintains a reasonable level of total assets at $86.87 billion.

Cash Flow

The cash flow statement shows a healthy free cash flow growth of 95.36% in the TTM compared to the previous annual period. The operating cash flow to net income ratio is 1.36, and the free cash flow to net income ratio is 0.79, indicating efficient cash conversion. However, the reliance on free cash flow may pose risks if operating cash flow fluctuates.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	96.70B	95.57B	88.42B	102.30B	101.20B	86.67B
Gross Profit	21.38B	21.25B	21.07B	22.69B	21.89B	20.14B
EBITDA	10.06B	9.59B	8.89B	7.66B	12.02B	9.79B
Net Income	4.60B	4.59B	3.39B	2.44B	5.56B	3.25B
Balance Sheet
Total Assets	86.87B	79.75B	82.09B	89.61B	92.73B	123.42B
Cash, Cash Equivalents and Short-Term Investments	7.70B	3.63B	7.37B	8.88B	10.01B	10.34B
Total Debt	28.78B	24.57B	25.99B	29.59B	27.96B	40.45B
Total Liabilities	89.89B	81.13B	84.40B	92.64B	94.31B	115.39B
Stockholders Equity	-3.02B	-1.48B	-2.23B	-3.12B	-1.69B	2.95B
Cash Flow
Free Cash Flow	3.65B	1.87B	5.92B	562.00M	7.51B	9.32B
Operating Cash Flow	6.27B	4.52B	8.68B	3.56B	10.31B	11.41B
Investing Cash Flow	-1.85B	-2.21B	-2.78B	-3.02B	1.31B	-460.00M
Financing Cash Flow	-2.50B	-5.82B	-7.09B	-1.63B	-16.61B	-5.95B

Dell Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 128.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 128.96 is above the 20-day moving average (MA) of 124.58, above the 50-day MA of 116.68, and above the 200-day MA of 111.66, indicating a bullish trend. The MACD of 3.54 indicates Positive momentum. The RSI at 63.61 is Neutral, neither overbought nor oversold. The STOCH value of 69.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DELL.

Dell Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTAP	79 Outperform	$21.71B	19.10	108.51%	2.42%	5.02%	22.19%
SMCI	78 Outperform	$30.90B	28.57	21.03%	―	82.10%	6.35%
DELL	70 Outperform	$89.09B	20.93	-179.12%	1.50%	7.68%	27.73%
Sector *	66 Neutral	€2.98B	14.86	3.57%	4.40%	6.71%	-64.46%
WDC	63 Neutral	$23.72B	12.93	28.45%	0.15%	21.22%	―
HPQ	61 Neutral	$23.54B	9.66	84.33%	5.72%	2.08%	-12.41%
STX	61 Neutral	$31.64B	21.54	-109.27%	1.92%	36.29%	―

Dell Technologies Corporate Events

Dell Technologies Converts Shares to Optimize Equity

In a series of transactions in June and July 2025, Dell Technologies Inc. converted 3,421,793 shares of its Class B common stock into Class C common stock, impacting the company’s share structure. This conversion, involving major stakeholders like Silver Lake Partners, was executed without registration under the Securities Act of 1933, reflecting the company’s strategic financial maneuvers to optimize its equity structure.

The most recent analyst rating on (DELL) stock is a Buy with a $150.00 price target. To see the full list of analyst forecasts on Dell Technologies stock, see the DELL Stock Forecast page.

Dell Technologies Stockholders Approve Key Governance Proposals

On June 26, 2025, Dell Technologies held its annual meeting of stockholders where three proposals were voted on. The stockholders elected directors to the Board, ratified PricewaterhouseCoopers LLP as the independent accounting firm, and approved the executive compensation package. These decisions reflect the company’s ongoing governance and operational strategies, impacting its leadership structure and financial oversight.

The most recent analyst rating on (DELL) stock is a Buy with a $150.00 price target. To see the full list of analyst forecasts on Dell Technologies stock, see the DELL Stock Forecast page.