Dell Technologies (DELL)
NYSE:DELL
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Dell Technologies
(NYSE:DELL)
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Rating:70Outperform
Price Target:
$204.00
▲(9.99% Upside)
Action:UpgradedDate:03/03/26
The score is driven primarily by strong earnings-call guidance and AI momentum (large backlog and rapid growth outlook), supported by bullish technical momentum. These positives are meaningfully offset by balance-sheet risk (negative equity, sizable debt) and cash-flow inconsistency, while valuation is reasonable but not notably cheap.
Positive Factors
AI Demand and Backlog
A multi‑billion dollar AI backlog and explicit AI revenue guidance provide durable revenue visibility and multi‑period work conversion. Large enterprise AI spend drives recurring infrastructure and services demand, strengthening Dell's order book and supporting capacity planning, product roadmaps, and long‑term revenue growth.
Negative Factors
Weak Balance Sheet / Negative Equity
Negative shareholders' equity and sizable debt create persistent leverage constraints that limit financial flexibility. This structural capital‑structure weakness raises refinancing and covenant sensitivity, reduces room for cyclical margin shocks, and can constrain M&A, investment pacing, and defensive actions during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
AI Demand and Backlog
A multi‑billion dollar AI backlog and explicit AI revenue guidance provide durable revenue visibility and multi‑period work conversion. Large enterprise AI spend drives recurring infrastructure and services demand, strengthening Dell's order book and supporting capacity planning, product roadmaps, and long‑term revenue growth.
Read all positive factors
Dell Technologies (DELL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$119.77B
Dividend Yield1.45%
Average Volume (3M)9.78M
Price to Earnings (P/E)12.8
Beta (1Y)2.01
Revenue Growth19.12%
EPS Growth39.59%
CountryUS
Employees108,000
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)3.89
Shares Outstanding318,358,120
10 Day Avg. Volume8,648,309
30 Day Avg. Volume9,782,205
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)-30.70
Price to Sales (P/S)0.67
P/FCF Ratio8.87
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue1.25
Enterprise Value/Gross Profit6.24
Enterprise Value/Ebitda15.55
Forecast
1Y Price Target
$177.69Price Target Upside-4.19% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)12.71
Revenue Forecast (FY)$138.46B
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...
How the Company Makes Money
Dell primarily makes money by selling technology products and associated services through two main operating segments. (1) Client Solutions Group (CSG): revenue is generated from the sale of commercial and consumer PCs (including notebooks and des...
Dell Technologies Key Performance Indicators (KPIs)
Any
Gross Profit by Type
Highlights the profit generated from different product or service types, shedding light on which areas are most profitable and driving the company's bottom line.
Highlights the profit generated from different product or service types, shedding light on which areas are most profitable and driving the company's bottom line.
Data provided by:
The Fly
The FlyDell Technologies Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:May 28, 2026
Earnings Call Sentiment Positive
The call conveyed strong, record-breaking financial performance and aggressive AI-driven growth with robust cash generation and shareholder returns. Management provided ambitious FY 2027 guidance centered on continued AI acceleration (AI revenue guide ~$50B) and operational levers (pricing discipline, supply prioritization, Dell IP storage mix) to protect margins. However, notable risks remain: severe component cost inflation, tight supply driving potential revenue lumpiness, CSG near-term margin pressure from share capture and channel inventory, and transition risk as new AI architectures ramp later in the year. Overall, the positives—large revenue/EPS/cash records, strong AI backlog and orders, ISG outperformance, and confident capital returns—outweigh the listed execution and market risks.Positive Updates
Record Full-Year Revenue and EPS
Fiscal 2026 revenue of $113,500,000,000, up 19% year-over-year; diluted non-GAAP EPS of $10.30, up 27%.
Negative Updates
Severe Supply Constraints and Component Cost Inflation
Company described industry-wide unprecedented AI-driven supply tightness and frequent pricing resets; spot DRAM up ~5.5x and NAND up ~4x over six months (management referenced analysts' estimates showing large YoY increases), creating input-cost pressure and lead-time extension risk.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Full-Year Revenue and EPS
Fiscal 2026 revenue of $113,500,000,000, up 19% year-over-year; diluted non-GAAP EPS of $10.30, up 27%.
Read all positive updates
Company Guidance
Dell guided FY2027 revenue of $138.0B–$142.0B (midpoint $140.0B, +23% y/y) with roughly $50.0B of AI revenue (~100% y/y); diluted non‑GAAP EPS of $12.90 ± $0.25 (≈+25% at midpoint); operating income growth of ~18% and INO of $1.4B–$1.5B; gross margin rates are expected to be up year‑over‑year excluding AI mix, OpEx dollars up low single digits (with OpEx down low single digits in Q1), and ISG/CSG operating income rates positioned at the lower end of the long‑term framework; Q1 FY27 revenue was guided to $34.7B–$35.7B (midpoint $35.2B, +51% y/y) with ISG growth >100% supported by ~$13.0B of AI server revenue, Q1 diluted EPS $2.90 ± $0.10 (≈+87% at midpoint) and an expected diluted share count of ~664M; management also reiterated a $43.0B AI backlog and announced capital actions—a 20% dividend increase to $2.52/share and a $10.0B increase to the share‑repurchase authorization.Dell Technologies Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
34
Negative
Cash Flow
38
Negative
| 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 | 11.85B | 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 | 8.55B | 1.87B | 5.92B | 562.00M | 7.51B |
| Operating Cash Flow | 11.19B | 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
Positive
185.47
Price Trends
142.01
Positive
134.17
Positive
134.62
Positive
Market Momentum
10.27
Negative
70.04
Negative
72.31
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 185.47 is above the 20-day moving average (MA) of 165.21, above the 50-day MA of 142.01, and above the 200-day MA of 134.62, indicating a bullish trend. The MACD of 10.27 indicates Negative momentum. The RSI at 70.04 is Negative, neither overbought nor oversold. The STOCH value of 72.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DELL.
Dell Technologies Risk Analysis
Dell Technologies disclosed 38 risk factors in its most recent earnings report. Dell Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Dell Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $114.86B | 8.79 | 64.18% | 0.18% | -16.35% | 316.56% | |
71 Outperform | $20.57B | 123.52 | 13.91% | ― | 13.18% | -0.92% | |
70 Outperform | $119.77B | 12.78 | -218.24% | 1.45% | 19.12% | 39.59% | |
70 Outperform | $108.23B | 26.06 | -889.39% | 1.02% | 31.56% | 106.00% | |
64 Neutral | $19.63B | 14.44 | 116.57% | 1.89% | 2.64% | 4.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $17.28B | 8.26 | 1135.29% | 5.09% | 4.09% | -5.77% |
* Technology Sector Average
DELL
Dell Technologies
185.47
107.97
139.31%
HPQ
HP
18.89
-2.88
-13.23%
NTAP
NetApp
99.47
18.75
23.23%
STX
Seagate Tech
496.30
427.45
620.82%
WDC
Western Digital
338.78
304.06
875.75%
PSTG
Pure Storage
62.25
20.33
48.50%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.