Dell Technologies (DELL) AI Stock Analysis

• Market Cap: $98.13B
• Dividend Yield: 1.45%
• Average Volume (3M): 7.41M
• Price to Earnings (P/E): 19.7
• Beta (1Y): 2.22
• 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: 7,091,124
• 30 Day Avg. Volume: 7,412,989
• 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: 1.21
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 5.25
• Enterprise Value/Ebitda: 14.93
• 1Y Price Target: $160.00
• Price Target Upside: 8.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 11.45
• Revenue Forecast (FY): $124.69B

• Rating: 62 Neutral
• Price Target: $157.00 ▲(6.02% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score balances strong technical momentum and a bullish earnings outlook (AI-driven growth and upbeat guidance) against meaningful financial risk from negative equity and volatile/unclear cash flow. Valuation is reasonable but not compelling enough to offset the balance-sheet and cash-flow concerns.

Positive Factors

AI server demand and backlog

Large, sustained AI server orders and an $18.4B backlog provide multi-quarter revenue visibility and shift mix toward higher‑value infrastructure. This supports ISG growth, stronger product attach and services, and durable enterprise relationships that can drive recurring revenue and higher margin streams.

Scale: revenue rebound and improving margins

A rebound to ~$113.5B in revenue with improving net margin shows Dell's ability to regain growth and operational leverage at scale. Large revenue base supports supplier negotiating power, R&D and go‑to‑market investment, enabling more stable medium‑term earnings generation versus smaller peers.

Diversified business model and recurring services

Multiple segments (CSG and ISG) plus services and financing create varied revenue and cash channels. Services and DFS increase customer stickiness and recurring-like income, smoothing cycles, supporting lifetime value, and giving Dell cross-sell and financing advantages in enterprise deals over the medium term.

Negative Factors

Weak balance sheet: negative equity, sizable debt

Negative shareholders' equity and ~ $31.5B of debt materially constrain financial flexibility. This structure raises refinancing, covenant and solvency risks in downturns, limits capacity for large M&A or aggressive capex, and can force caution in capital allocation over the medium term.

Volatile cash generation

Inconsistent cash generation—strong in some years, weak or zero in others—undermines a stable funding base for debt service, capex and shareholder returns. Persistent volatility increases reliance on external financing and reduces predictability of investments and buybacks over the next several quarters.

Thin margins and cyclical results

Relatively low gross and net margins for a large technology provider limit reinvestment capacity and make earnings sensitive to commodity costs, pricing pressure and mix shifts. Margin thinness amplifies cyclicality and reduces buffer against cost inflation or competitive price moves over the medium term.

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

Operating performance improved with revenue rebounding (~9% to ~$113.5B) and higher net margin (~5.2%), but overall financial strength is constrained by a weak balance sheet (negative equity, sizable debt) and inconsistent/unclear latest-year cash flow (operating and free cash flow shown as $0).

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	7.26B	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: 148.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 148.08 is above the 20-day moving average (MA) of 120.84, above the 50-day MA of 121.32, and above the 200-day MA of 128.01, indicating a bullish trend. The MACD of 2.32 indicates Negative momentum. The RSI at 71.41 is Negative, neither overbought nor oversold. The STOCH value of 84.17 is Negative, 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	$94.83B	28.08	41.27%	0.18%	-16.35%	316.56%
NTAP	72 Outperform	$19.54B	17.24	125.35%	1.89%	2.64%	4.12%
PSTG	72 Outperform	$21.20B	117.79	13.68%	―	13.18%	-0.92%
STX	70 Outperform	$88.94B	46.12	―	1.02%	31.56%	106.00%
DELL	62 Neutral	$98.13B	19.75	―	1.45%	10.81%	31.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HPQ	57 Neutral	$17.37B	7.17	―	5.09%	4.09%	-5.77%