Dell Technologies (DELL) AI Stock Analysis

• Market Cap: $86.14B
• Dividend Yield: 1.45%
• Average Volume (3M): 7.11M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 2.28
• 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: 5,737,991
• 30 Day Avg. Volume: 7,107,891
• 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: 1.54
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 6.14
• Enterprise Value/Ebitda: 16.02
• 1Y Price Target: $168.00
• Price Target Upside: 29.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 9.92
• Revenue Forecast (FY): $111.00B

• Rating: 65 Neutral
• Price Target: $151.00 ▲(16.17% 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 Growth

Strong demand for AI servers indicates Dell's strategic positioning in a high-growth market, supporting long-term revenue expansion.

Infrastructure Solutions Growth

Record growth in ISG highlights Dell's competitive advantage in infrastructure solutions, crucial for sustained market leadership.

Cash Flow and Shareholder Returns

Strong cash flow generation supports Dell's ability to invest in growth initiatives and return capital to shareholders, enhancing long-term value.

Negative Factors

High Financial Leverage

High leverage poses risks to financial stability, potentially limiting Dell's flexibility to invest in growth and manage economic downturns.

Negative Free Cash Flow Growth

Negative free cash flow growth indicates potential cash management issues, which could impact Dell's ability to fund operations and growth.

Commodity Cost Pressures

Rising commodity costs may pressure margins, affecting profitability and pricing strategies in the long term.

Dell Technologies Business Overview & Revenue Model

Company Description

Dell Technologies (DELL) is a global leader in technology solutions and services, specializing in the design, development, and manufacturing of a wide range of computer hardware, software, and related services. The company operates through multiple segments, including Client Solutions Group, Infrastructure Solutions Group, and VMware. Core products encompass personal computers, servers, storage devices, networking equipment, and cloud computing solutions, while also providing IT services, support, and consulting to businesses and organizations worldwide.

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: 129.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 129.98 is below the 20-day moving average (MA) of 131.27, below the 50-day MA of 143.54, and above the 200-day MA of 120.48, indicating a neutral trend. The MACD of -1.05 indicates Negative momentum. The RSI at 42.07 is Neutral, neither overbought nor oversold. The STOCH value of 55.60 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	77 Outperform	$60.29B	25.71	31.48%	0.18%	-16.35%	316.56%
NTAP	76 Outperform	$22.91B	20.13	125.35%	1.80%	2.64%	4.12%
STX	68 Neutral	$61.43B	36.92	―	1.00%	31.56%	106.00%
DELL	65 Neutral	$86.14B	17.34	―	1.45%	10.81%	31.67%
PSTG	64 Neutral	$23.55B	188.28	9.27%	―	13.18%	-0.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HPQ	61 Neutral	$22.71B	9.32	―	4.72%	4.09%	-5.77%

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.

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.

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.

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.

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.