Dell Technologies (DELL) AI Stock Analysis

• Market Cap: $93.42B
• Dividend Yield: 1.41%
• Average Volume (3M): 4.63M
• Price to Earnings (P/E): 21.9
• Beta (1Y): 2.11
• Revenue Growth: 7.68%
• EPS Growth: 27.73%
• Country: US
• Employees: 108,000
• Sector: Technology
• Sector Strength: 98
• Industry: Computer Hardware
• EPS (TTM): 1.55
• Shares Outstanding: 339,719,020
• 10 Day Avg. Volume: 4,578,594
• 30 Day Avg. Volume: 4,628,033
• PEG Ratio: 0.39
• Price to Book (P/B): -48.66
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 38.59
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 4.12
• Enterprise Value/Ebitda: 8.76
• 1Y Price Target: $141.00
• Price Target Upside: 2.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 71 Outperform
• Price Target: $145.00 ▲(5.37% Upside)

Dell's strong earnings call performance, driven by AI demand and record cash flow, significantly boosts its score. Solid technical indicators and fair valuation support this strength. Financial performance, while mixed, shows potential for improvement. Challenges remain in high leverage and competitive markets, but strategic focus on AI positions Dell well for future growth.

Positive Factors

AI server orders

Picking up an increase in DELL AI server system orders.

Capital return strategy

Dell's capital return strategy includes significant share repurchases and dividend increases, reflecting confidence in financial health.

Revenue growth

The increase in Wistron’s GB200 rack shipments for CY25 is a direct, positive read-through for DELL’s AI server orders and revenue for FY26.

Negative Factors

Government cost-cutting

Dell shares came under pressure following reports that the Federal government is looking for opportunities to cut costs.

Inventory management

Dell's Finished Goods balance stood at $941M exiting F1Q26, down from $1.156B exiting FY25, which may indicate inventory management challenges.

Margin pressure

Greater AI server mix means added margin pressure.

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, 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	7.85B	3.63B	7.37B	8.61B	9.48B	9.51B
Total Debt	29.57B	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: Positive
• Last Price: 137.61
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 137.61 is above the 20-day moving average (MA) of 129.42, above the 50-day MA of 122.34, and above the 200-day MA of 111.95, indicating a bullish trend. The MACD of 3.18 indicates Negative momentum. The RSI at 65.58 is Neutral, neither overbought nor oversold. The STOCH value of 69.46 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
NTAP	76 Outperform	$21.25B	18.72	108.51%	1.96%	5.02%	22.19%
STX	76 Outperform	$32.00B	22.22	-109.27%	1.90%	38.86%	337.22%
WDC	72 Outperform	$26.16B	16.38	22.57%	0.13%	2.12%	―
SMCI	71 Outperform	$26.62B	26.91	17.90%	―	47.04%	-17.89%
DELL	71 Outperform	$93.42B	21.94	-179.12%	1.41%	7.68%	27.73%
Sector *	68 Neutral	¥238.13B	15.93	6.62%	2.46%	9.00%	-0.33%
HPQ	65 Neutral	$24.52B	10.06	84.33%	4.38%	2.08%	-12.41%

Dell Technologies Corporate Events

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.

The most recent analyst rating on (DELL) stock is a Buy with a $150.00 price target. To see the full list of analyst forecasts on Dell Technologies stock, see the DELL Stock Forecast page.

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.

The most recent analyst rating on (DELL) stock is a Buy with a $150.00 price target. To see the full list of analyst forecasts on Dell Technologies stock, see the DELL Stock Forecast page.