Dell Technologies (DELL) AI Stock Analysis

• Market Cap: $82.92B
• Dividend Yield: 1.59%
• Average Volume (3M): 4.94M
• Price to Earnings (P/E): 19.7
• Beta (1Y): 2.13
• Revenue Growth: 10.50%
• EPS Growth: N/A
• Country: US
• Employees: 108,000
• Sector: Technology
• Sector Strength: 85
• Industry: Computer Hardware
• EPS (TTM): 2.32
• Shares Outstanding: 339,719,020
• 10 Day Avg. Volume: 4,716,909
• 30 Day Avg. Volume: 4,944,631
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 4.12
• Enterprise Value/Ebitda: 8.76
• 1Y Price Target: $148.00
• Price Target Upside: 21.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 64 Neutral
• Price Target: $131.00 ▲(7.25% Upside)

Dell's strong earnings call and strategic focus on AI drive a positive outlook, despite financial stability concerns from high leverage and technical indicators suggesting potential bearish momentum.

Positive Factors

AI Server Revenue

Dell executed on better AI server delivery to customers, leading to a significant increase in revenue expectations.

Earnings Growth

Analyst recommends an Overweight rating for Dell, highlighting its strong position to leverage AI and drive strong earnings growth in the medium-term.

Financial Performance

Revenue growth just hit a 3+ year high, indicating strong financial performance.

Negative Factors

Gross Margins

Lower AI margins and one-time supply chain costs have negatively affected gross margins.

Stock Performance

Shares are lower post-market as AI server strength was partially offset by mixed execution.

Supply Chain Inefficiencies

Execution to keep up with customer demand on AI servers was done at the expense of margins due to supply chain inefficiencies.

Dell Technologies Business Overview & Revenue Model

Company Description

Dell Technologies Inc. is a global leader in information technology, known for its comprehensive portfolio of technology solutions, products, and services. The company operates across multiple sectors, including personal computers, servers, storage solutions, and networking, as well as software and cloud services. Dell's core offerings include personal and enterprise hardware, cloud services, data storage solutions, and IT consulting, catering to a wide range of customers from individual consumers to large enterprises.

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 profitability with notable free cash flow increase. However, high leverage and negative stockholders' equity present challenges, suggesting a mixed financial position.

Income Statement

Dell Technologies shows strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 1.19% compared to the previous annual period. The gross profit margin stands at 22.11%, and the net profit margin is 4.75%, indicating a stable profitability level. However, the EBIT margin of 6.71% and EBITDA margin of 9.36% suggest room for improvement in operational efficiency.

Balance Sheet

The balance sheet reveals high leverage, as seen in the negative stockholders' equity and a debt-to-equity ratio that cannot be calculated due to negative equity. The return on equity (ROE) is also affected by the negative equity. Despite these concerns, the company maintains a reasonable level of total assets at $86.87 billion.

Cash Flow

The cash flow statement shows a healthy free cash flow growth of 95.36% in the TTM compared to the previous annual period. The operating cash flow to net income ratio is 1.36, and the free cash flow to net income ratio is 0.79, indicating efficient cash conversion. However, the reliance on free cash flow may pose risks if operating cash flow fluctuates.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	96.70B	95.57B	88.42B	102.30B	101.20B	86.67B
Gross Profit	21.38B	21.25B	21.07B	22.69B	21.89B	20.14B
EBITDA	10.06B	9.59B	8.89B	7.66B	12.02B	9.79B
Net Income	4.60B	4.59B	3.39B	2.44B	5.56B	3.25B
Balance Sheet
Total Assets	86.87B	79.75B	82.13B	89.61B	92.73B	123.42B
Cash, Cash Equivalents and Short-Term Investments	7.70B	3.63B	7.37B	8.61B	9.48B	9.51B
Total Debt	28.78B	24.57B	25.99B	29.59B	26.95B	41.45B
Total Liabilities	89.89B	81.13B	84.26B	92.64B	94.31B	115.39B
Stockholders Equity	-3.02B	-1.48B	-2.23B	-3.12B	-1.69B	2.95B
Cash Flow
Free Cash Flow	3.65B	1.87B	5.92B	562.00M	7.51B	9.32B
Operating Cash Flow	6.27B	4.52B	8.68B	3.56B	10.31B	11.41B
Investing Cash Flow	-1.85B	-2.21B	-2.78B	-3.02B	1.31B	-460.00M
Financing Cash Flow	-2.50B	-5.82B	-7.09B	-1.63B	-16.61B	-5.95B

Dell Technologies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 122.15
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 122.15 is below the 20-day moving average (MA) of 133.39, below the 50-day MA of 128.80, and above the 200-day MA of 112.58, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 37.05 is Neutral, neither overbought nor oversold. The STOCH value of 36.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DELL.

Dell Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTAP	74 Outperform	$22.51B	20.71	123.00%	1.84%	3.45%	9.69%
WDC	74 Outperform	$27.87B	17.00	25.98%	0.12%	2.12%	―
HPQ	73 Outperform	$26.68B	10.32	84.33%	4.01%	3.11%	-3.54%
STX	72 Outperform	$35.60B	25.46	-109.27%	1.71%	38.86%	337.22%
PSTG	65 Neutral	$25.37B	190.59	10.04%	―	11.31%	-1.30%
DELL	64 Neutral	$82.92B	19.70	-179.12%	1.59%	10.50%	―
Sector *	61 Neutral	$35.48B	7.63	-10.11%	1.88%	8.73%	-9.23%

Dell Technologies Corporate Events

Dell Technologies Announces New Chief Accounting Officer

On August 7, 2025, Brunilda Rios, Senior Vice President, Corporate Finance and Chief Accounting Officer at Dell Technologies, announced her decision to step down from her role as principal accounting officer for personal reasons, effective August 8, 2025. Richard Troy Sharp, who has been with the company since 2012 and served as Vice President, Corporate Accounting and Reporting since 2021, will take over the position. Sharp’s appointment comes with a compensation package that includes a base salary of $368,100 and a target annual bonus of 55% of his salary, pro-rated for the fiscal year ending January 30, 2026. This leadership change is expected to maintain continuity in Dell’s financial operations.

Dell Technologies Converts Shares to Optimize Equity

In a series of transactions in June and July 2025, Dell Technologies Inc. converted 3,421,793 shares of its Class B common stock into Class C common stock, impacting the company’s share structure. This conversion, involving major stakeholders like Silver Lake Partners, was executed without registration under the Securities Act of 1933, reflecting the company’s strategic financial maneuvers to optimize its equity structure.

Dell Technologies Stockholders Approve Key Governance Proposals

On June 26, 2025, Dell Technologies held its annual meeting of stockholders where three proposals were voted on. The stockholders elected directors to the Board, ratified PricewaterhouseCoopers LLP as the independent accounting firm, and approved the executive compensation package. These decisions reflect the company’s ongoing governance and operational strategies, impacting its leadership structure and financial oversight.