Dell Technologies (DELL) AI Stock Analysis

• Market Cap: $79.87B
• Dividend Yield: 1.45%
• Average Volume (3M): 5.47M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 2.26
• Revenue Growth: 10.81%
• EPS Growth: 31.67%
• Country: US
• Employees: 108,000
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 2.59
• Shares Outstanding: 333,917,820
• 10 Day Avg. Volume: 7,542,419
• 30 Day Avg. Volume: 5,469,614
• PEG Ratio: 0.41
• Price to Book (P/B): -48.66
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 38.59
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 6.20
• Enterprise Value/Ebitda: 16.18
• 1Y Price Target: $164.00
• Price Target Upside: 36.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 9.92
• Revenue Forecast (FY): $111.59B

• Rating: 65 Neutral
• Price Target: $130.00 ▲(7.86% Upside)

Dell Technologies' overall stock score reflects a balanced view of its financial performance, technical indicators, valuation, and positive earnings call. The company's strong growth in AI and ISG, along with reasonable valuation, are significant strengths. However, financial leverage and cash flow management remain concerns that temper the overall score.

Positive Factors

AI server demand and backlog

Sustained, large AI server orders and an $18.4B backlog create multi-quarter revenue visibility for Infrastructure Solutions. This drives scale advantages, factory utilization, supplier leverage and long‑term enterprise customer relationships that underpin durable ISG growth and margin upside.

Recurring software and direct sales model

A meaningful subscription and services base provides recurring, higher‑margin revenue and predictable cash flows. Coupled with Dell’s direct sales model, this supports stronger gross margins, cross‑sell of hardware/software and tighter customer lock‑in, improving long‑term revenue stability and lifetime value.

Strategic government partnership

Participation in the US Tech Force positions Dell to win multi‑year federal modernization work and long‑term public sector engagements. This can expand recurring services, enhance certifications and scale for public clouds and AI projects, diversifying demand beyond commercial cycles over several years.

Negative Factors

Negative shareholders' equity and high leverage

Negative equity and elevated leverage constrain financial flexibility, increase refinancing and interest risks, and limit capacity for strategic investments or acquisitions. Over time, this heightens vulnerability to market shocks and can force prioritization of debt servicing over growth initiatives.

Weak free cash flow growth

Declining FCF growth despite positive operating cash flow signals cash generation isn't keeping pace with needs. This reduces available capital for deleveraging, R&D, and infrastructure (notably AI-related capex), pressuring long‑term investment capacity and balance sheet repair.

Consumer revenue decline

A material drop in consumer revenue evidences exposure to end‑market cyclicality and weaker retail demand. Combined with noted commodity cost pressures (DRAM, NAND), this can compress consumer margins and reduce pricing flexibility, limiting durable margin recovery and revenue diversification.

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 generates revenue through several key streams: sales of hardware products such as laptops, desktops, servers, and storage solutions; software and services including cloud solutions, virtualization software, and IT support services; and subscription-based offerings through VMware. The company benefits from a direct-to-consumer sales model, allowing it to maintain high margins by selling directly to customers while also leveraging partnerships with major corporations and businesses for enterprise solutions. Additionally, recurring revenue from software subscriptions and services contributes significantly to its financial stability and growth.

Dell Technologies Financial Statement Overview

Summary

Dell Technologies demonstrates stable revenue growth and moderate profitability, but faces significant challenges with high leverage and negative equity. Cash flow management needs improvement to support long-term financial health. The company should focus on reducing debt and improving operational efficiency.

Income Statement

Dell Technologies shows a stable revenue growth rate of 2.6% in the TTM, indicating steady demand. The gross profit margin is moderate at 20.6%, but the net profit margin of 5.0% suggests room for improvement in cost management. EBIT and EBITDA margins are relatively low, indicating potential efficiency issues.

Balance Sheet

The balance sheet reveals a significant challenge with a negative stockholders' equity and a high debt-to-equity ratio of -11.92, indicating financial leverage risks. Return on equity is negative, reflecting losses relative to equity, which is a concern for long-term sustainability.

Cash Flow

Operating cash flow is positive, but the free cash flow growth rate is negative at -8.5%, indicating potential cash management issues. The operating cash flow to net income ratio is low, suggesting that cash generation from operations is not fully supporting net income.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	95.57B	88.42B	102.30B	101.20B	86.67B
Gross Profit	21.25B	21.07B	22.69B	21.89B	20.14B
EBITDA	9.59B	8.89B	7.66B	12.02B	9.79B
Net Income	4.59B	3.39B	2.44B	5.56B	3.25B
Balance Sheet
Total Assets	79.75B	82.13B	89.61B	92.73B	123.42B
Cash, Cash Equivalents and Short-Term Investments	3.63B	7.37B	8.61B	9.48B	9.51B
Total Debt	24.57B	25.99B	29.59B	26.95B	41.45B
Total Liabilities	81.13B	84.26B	92.64B	94.31B	115.39B
Stockholders Equity	-1.48B	-2.23B	-3.12B	-1.69B	2.95B
Cash Flow
Free Cash Flow	1.87B	5.92B	562.00M	7.51B	9.32B
Operating Cash Flow	4.52B	8.68B	3.56B	10.31B	11.41B
Investing Cash Flow	-2.21B	-2.78B	-3.02B	1.31B	-460.00M
Financing Cash Flow	-5.82B	-7.09B	-1.63B	-16.61B	-5.95B

Dell Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 120.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 120.53 is below the 20-day moving average (MA) of 123.82, below the 50-day MA of 129.97, and below the 200-day MA of 124.00, indicating a bearish trend. The MACD of -3.55 indicates Positive momentum. The RSI at 39.79 is Neutral, neither overbought nor oversold. The STOCH value of 34.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DELL.

Dell Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDC	80 Outperform	$75.73B	32.30	31.48%	0.18%	-16.35%	316.56%
NTAP	70 Outperform	$20.57B	18.07	125.35%	1.89%	2.64%	4.12%
STX	68 Neutral	$69.67B	41.88	―	1.02%	31.56%	106.00%
DELL	65 Neutral	$79.87B	16.08	―	1.45%	10.81%	31.67%
PSTG	64 Neutral	$24.07B	192.45	9.27%	―	13.18%	-0.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HPQ	61 Neutral	$18.70B	7.68	―	5.09%	4.09%	-5.77%