Dell Technologies (DELL) AI Stock Analysis

• Market Cap: $79.38B
• Dividend Yield: 1.45%
• Average Volume (3M): 7.05M
• Price to Earnings (P/E): 16.0
• 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): 3.89
• Shares Outstanding: 333,917,820
• 10 Day Avg. Volume: 6,546,100
• 30 Day Avg. Volume: 7,045,795
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 4.60
• Enterprise Value/Ebitda: 12.63
• 1Y Price Target: $160.50
• Price Target Upside: 32.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 11.45
• Revenue Forecast (FY): $124.69B

• Rating: 58 Neutral
• Price Target: $126.00 ▲(3.75% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held back primarily by balance sheet strain (negative equity) and inconsistent/unclear latest-period cash flow, despite improving revenue and profitability. Offsetting this, the latest earnings call was notably positive on AI-driven growth and guidance, while technicals are neutral and valuation appears reasonable with a modest dividend.

Positive Factors

AI backlog & server demand

A $43B backlog and multi‑billion annual AI shipments create durable multi‑quarter revenue visibility for ISG. This structural demand supports capacity planning, higher utilization, and strategic OEM/partner leverage, reducing cyclicality and enabling sustained investment in AI engineering and go‑to‑market.

Scale and revenue recovery

Restored top‑line scale and improving margins indicate resilient demand across client and infrastructure segments. Large revenue base funds R&D, distribution reach, and supply relationships, allowing Dell to defend pricing and invest in product differentiation over multiple cycles.

Strong capital returns & cash conversion history

Consecutive large buybacks and a higher dividend reflect historically strong cash conversion and disciplined capital allocation. When sustained, this improves shareholder returns, reduces share count, and signals management confidence in free cash generation capacity across business cycles.

Negative Factors

Weak balance sheet / negative equity

Negative equity and material leverage constrain financial flexibility and increase refinancing risk in stress scenarios. This limits ability to fund opportunistic M&A, absorb cyclical downturns, or sustain aggressive buybacks absent consistent cash flow, raising long‑term capital structure vulnerability.

Volatile cash generation

Irregular cash flow undermines ability to service debt and maintain capital return programs. A reported $0 in the latest annual period signals either a reporting gap or a sharp drop in conversion, increasing execution risk and making future leverage and payout sustainability more contingent on consistent cash recovery.

Margin pressure & commodity costs

Persistently tight component markets and DRAM/NAND cost inflation compress gross margins on large hardware volumes. With gross margins near the low end, sustained input cost increases or pricing resets could materially press profitability given Dell's hardware mix, limiting durable operating leverage.

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

Income statement shows a clear rebound (revenue up ~9% and improved net margin to ~5.2%), but overall financial strength is constrained by a weak balance sheet (negative equity, sizable debt) and uneven/unclear latest-period cash flow (latest year shows $0 operating/free cash flow, per provided data), which raises durability risk.

Income Statement

Revenue rebounded strongly in the latest annual period (up ~9% to ~$113.5B) after a prior downturn, and profitability improved versus 2023–2024 with net margin rising to ~5.2%. Gross margin has been relatively stable around ~20–24% over time but sits toward the lower end in the latest year (~20%), suggesting ongoing pricing/mix pressure. Overall, the company shows solid scale and a recovery in earnings power, but margins remain thin for the revenue base and results have been somewhat cyclical.

Balance Sheet

Leverage is a key overhang: total debt remains sizable (~$31.5B in the latest year) and shareholders’ equity is negative in recent years, which materially weakens balance sheet flexibility and makes leverage metrics less meaningful/less favorable. Total assets are large (~$101.3B), but the negative equity position raises risk around capital structure resilience during downturns. The main positive is that debt has not consistently ballooned year-over-year, but overall balance sheet quality is constrained by the equity deficit.

Cash Flow

Cash generation appears volatile. Operating and free cash flow were strong in some years (e.g., 2022 and 2024), but weakened sharply in others (notably 2023), and the latest annual period shows operating cash flow and free cash flow recorded at $0, implying either a severe drop-off or a data/reporting gap for that period. Where cash flow is positive, free cash flow has generally covered a meaningful portion of net income, but the inconsistency and the latest-year collapse/absence weigh heavily on cash-flow quality.

Breakdown	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	113.54B	95.57B	88.42B	102.30B	101.20B
Gross Profit	22.71B	21.25B	21.07B	22.69B	21.89B
EBITDA	8.15B	9.59B	8.89B	7.66B	12.02B
Net Income	5.94B	4.59B	3.39B	2.44B	5.56B
Balance Sheet
Total Assets	101.29B	79.75B	82.13B	89.61B	92.73B
Cash, Cash Equivalents and Short-Term Investments	11.53B	3.63B	7.37B	8.61B	9.48B
Total Debt	31.50B	24.57B	25.99B	29.59B	26.95B
Total Liabilities	103.76B	81.13B	84.26B	92.64B	94.31B
Stockholders Equity	-2.47B	-1.48B	-2.23B	-3.12B	-1.69B
Cash Flow
Free Cash Flow	0.00	1.87B	5.92B	562.00M	7.51B
Operating Cash Flow	0.00	4.52B	8.68B	3.56B	10.31B
Investing Cash Flow	-2.06B	-2.21B	-2.78B	-3.02B	1.31B
Financing Cash Flow	-1.46B	-5.82B	-7.09B	-1.63B	-16.61B

Dell Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 121.45
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Positive. The current price of 121.45 is above the 20-day moving average (MA) of 119.15, above the 50-day MA of 121.12, and below the 200-day MA of 127.64, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 54.49 is Neutral, neither overbought nor oversold. The STOCH value of 62.43 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
WDC	79 Outperform	$91.73B	27.16	41.27%	0.18%	-16.35%	316.56%
PSTG	72 Outperform	$22.36B	194.19	9.27%	―	13.18%	-0.92%
NTAP	70 Outperform	$19.78B	17.38	125.35%	1.89%	2.64%	4.12%
STX	70 Outperform	$86.36B	44.78	―	1.02%	31.56%	106.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DELL	58 Neutral	$79.38B	15.98	―	1.45%	10.81%	31.67%
HPQ	57 Neutral	$16.71B	6.87	―	5.09%	4.09%	-5.77%