Dell Technologies (DELL) AI Stock Analysis

• Market Cap: $82.37B
• Dividend Yield: 1.65%
• Average Volume (3M): 6.57M
• Price to Earnings (P/E): 18.0
• Beta (1Y): 2.26
• Revenue Growth: 10.68%
• EPS Growth: 24.29%
• Country: US
• Employees: 108,000
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 2.32
• Shares Outstanding: 336,904,630
• 10 Day Avg. Volume: 8,011,116
• 30 Day Avg. Volume: 6,565,339
• 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: 1.32
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 5.13
• Enterprise Value/Ebitda: 12.75
• 1Y Price Target: $167.14
• Price Target Upside: 36.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $129.00 ▲(5.30% Upside)

Dell's overall stock score is driven by strong earnings call performance and robust revenue growth, particularly in AI and ISG segments. However, high leverage and negative equity on the balance sheet pose financial risks. Technical indicators suggest bearish momentum, and valuation metrics indicate a fair but not compelling valuation. The company's strategic focus on AI and increased guidance provide a positive outlook, but challenges in certain segments remain.

Positive Factors

AI Growth

Strong AI growth represents a durable competitive advantage, positioning Dell as a leader in the rapidly expanding AI market, enhancing long-term revenue potential.

Infrastructure Solutions Growth

Consistent ISG growth underscores Dell's robust market position in enterprise solutions, supporting sustained revenue expansion and competitive strength.

Long-term EPS Growth

Raising long-term EPS growth expectations reflects confidence in strategic initiatives and operational efficiency, indicating strong future profitability.

Negative Factors

High Leverage

High leverage and negative equity pose financial risks, potentially limiting strategic flexibility and increasing vulnerability to economic downturns.

Storage Revenue Decline

Declining storage revenue highlights challenges in maintaining market share and competitiveness in a key segment, affecting long-term growth prospects.

Consumer Revenue Decrease

A decrease in consumer revenue suggests weakening demand and potential challenges in the consumer market, impacting overall 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, 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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 122.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 122.51 is below the 20-day moving average (MA) of 143.55, below the 50-day MA of 143.38, and above the 200-day MA of 118.91, indicating a neutral trend. The MACD of -7.67 indicates Positive momentum. The RSI at 31.94 is Neutral, neither overbought nor oversold. The STOCH value of 8.48 is Positive, 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	79 Outperform	$52.64B	22.45	31.48%	0.13%	-16.35%	316.56%
PSTG	72 Outperform	$25.76B	192.49	10.04%	―	11.31%	-1.30%
NTAP	71 Outperform	$21.42B	18.96	123.00%	2.01%	3.45%	9.69%
STX	62 Neutral	$50.72B	30.49	―	1.08%	31.56%	106.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DELL	60 Neutral	$82.37B	18.02	―	1.65%	10.68%	24.29%
HPQ	56 Neutral	$22.40B	8.72	―	4.83%	3.11%	-3.54%

Dell Technologies Corporate Events

Dell Technologies Highlights AI Focus in Analyst Presentation

On October 7, 2025, Dell Technologies held a presentation for securities analysts and the public, discussing its long-term financial framework and reaffirming its guidance for fiscal 2026 Q3. The company highlighted its strategic focus on AI technology, which is expected to drive significant growth and modernization in IT architecture. Dell’s strong track record of earnings and capital return positions it favorably in the evolving tech landscape, with plans to leverage its strengths to capture new growth opportunities.

The most recent analyst rating on (DELL) stock is a Buy with a $155.00 price target. To see the full list of analyst forecasts on Dell Technologies stock, see the DELL Stock Forecast page.

Dell Technologies Completes $4.5 Billion Senior Notes Offering

On October 6, 2025, Dell Technologies Inc.’s subsidiaries, Dell International L.L.C. and EMC Corporation, completed a public offering of senior notes totaling $4.5 billion. The notes, which are unsecured and guaranteed by Dell and its subsidiaries, are intended to strengthen the company’s financial structure and provide flexibility in managing its debt obligations. The offering includes notes maturing between 2029 and 2036, with interest rates ranging from 4.150% to 5.100%. This strategic financial move is expected to enhance Dell’s market positioning by ensuring robust capital management and potentially influencing its credit ratings.

The most recent analyst rating on (DELL) stock is a Buy with a $155.00 price target. To see the full list of analyst forecasts on Dell Technologies stock, see the DELL Stock Forecast page.

Dell Awards $132.4M Stock Options to COO Clarke

On September 30, 2025, Dell Technologies‘ Board of Directors approved a performance-based stock option award for Jeffrey Clarke, the company’s COO and Vice Chairman, to purchase 2.5 million shares of Class C common stock. This award, valued at approximately $132.4 million, is designed to recognize Clarke’s leadership and incentivize his continued contribution to the company’s strategic objectives. The award is contingent on achieving specific performance criteria related to market capitalization and free cash flow by January 31, 2031, and requires Clarke’s continued employment through March 15, 2031, with provisions for accelerated vesting under certain conditions.

The most recent analyst rating on (DELL) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Dell Technologies stock, see the DELL Stock Forecast page.

Dell Technologies Converts Class B to Class C Shares

In September 2025, Dell Technologies Inc. converted 3,915,292 shares of its Class B common stock into Class C common stock, held by various Silver Lake entities. This conversion increased the outstanding shares of Class C common stock to 338,646,945 and reduced Class B shares to 54,790,897. The conversion was conducted without registration under the Securities Act of 1933, leveraging an exemption, and no commission was paid for the exchange. This move reflects Dell’s ongoing stock management strategy, potentially impacting shareholder structure and market perception.

The most recent analyst rating on (DELL) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Dell Technologies stock, see the DELL Stock Forecast page.

Dell Technologies Announces $4.5 Billion Senior Notes Sale

On September 22, 2025, Dell Technologies Inc. and its subsidiaries entered into an underwriting agreement with major financial institutions to issue and sell senior notes totaling $4.5 billion. The proceeds from this offering, expected to close on October 6, 2025, will be used to redeem a portion of existing senior notes due in 2026 and for general corporate purposes, potentially impacting the company’s debt structure and financial strategy.

The most recent analyst rating on (DELL) stock is a Hold with a $133.00 price target. To see the full list of analyst forecasts on Dell Technologies stock, see the DELL Stock Forecast page.

Dell Technologies CFO Resignation Announced

On September 5, 2025, Dell Technologies announced that its Chief Financial Officer, Yvonne McGill, will resign effective September 9, 2025, and will assist in the transition until October 31, 2025. Her resignation is not due to any disagreements with the company. David Kennedy, Senior Vice President of Global Business Operations, Finance, has been appointed as interim CFO. Dell has initiated a search for a permanent replacement.

The most recent analyst rating on (DELL) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on Dell Technologies stock, see the DELL Stock Forecast page.

Dell Technologies’ Earnings Call Highlights Record Revenue and AI Growth

The recent earnings call from Dell Technologies showcased a generally positive sentiment, largely driven by record revenue figures and substantial growth in the AI and Infrastructure Solutions Group (ISG) sectors. Despite facing challenges in storage revenue and traditional server demand in North America, as well as a decline in consumer revenue, the overall highlights, particularly in AI growth and record achievements, were more prominent.

Dell Technologies Reports Record Revenue in Q2 FY26

Dell Technologies, a leader in the technology sector, specializes in providing a broad range of innovative technology and services to help organizations and individuals build their digital future, particularly focusing on AI solutions.