Dell Technologies (NYSE:DELL) Shares Gap Up on Strong Earnings

Shares of Dell Technologies Inc. (NYSE:DELL) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $425.00, but opened at $462.05. Dell Technologies shares last traded at $444.8420, with a volume of 7,956,974 shares trading hands.

The technology company reported $7.04 earnings per share for the quarter, topping the consensus estimate of $4.91 by $2.13. Dell Technologies had a net margin of 6.28% and a negative return on equity of 366.90%. The firm had revenue of $46.97 billion for the quarter, compared to analysts’ expectations of $44.89 billion. During the same quarter in the prior year, the firm posted $1.70 earnings per share. The business’s quarterly revenue was up 57.7% on a year-over-year basis. Dell Technologies has set its FY 2027 guidance at 25.500-25.500 EPS and its Q3 2027 guidance at 6.500-6.500 EPS.

Dell Technologies Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Tuesday, October 20th will be issued a $0.63 dividend. The ex-dividend date of this dividend is Tuesday, October 20th. This represents a $2.52 annualized dividend and a dividend yield of 0.6%. Dell Technologies’s dividend payout ratio (DPR) is presently 20.02%.

Key Headlines Impacting Dell Technologies

Here are the key news stories impacting Dell Technologies this week:

• Positive Sentiment: AI infrastructure demand remains exceptionally strong. Fiscal Q2 revenue rose 57.7% year over year to $46.97 billion, while EPS of $7.04 exceeded the roughly $4.91 consensus estimate. AI-optimized server revenue doubled to $16.4 billion, and AI-server orders reached a record $60.9 billion. Dell again lifts forecasts as AI demand powers record results
• Positive Sentiment: Management sharply raised its outlook. Dell lifted fiscal 2027 revenue guidance to $192 billion from $167 billion and adjusted EPS guidance to $25.50 from $17.90. Third-quarter guidance of $49 billion in revenue and $6.50 EPS also stands well above analyst expectations. Dell surges after lifting fiscal 2027 forecast on AI server strength
• Positive Sentiment: The $95 billion backlog improves revenue visibility. Analysts have upgraded their views and raised price targets, including Morgan Stanley, which increased its target to $499 while retaining an equal-weight rating. Dell shares rise as demand jumps for AI servers
• Neutral Sentiment: Dell announced a new Dell 14S laptop with up to 21 hours of battery life, targeting students and value-focused consumers. The launch supports the client business but is much less significant to the stock than the AI-server results. Meet the Dell 14S
• Negative Sentiment: Macro and valuation risks are limiting the reaction. Rising 10-year Treasury yields and crude oil above $90, amid renewed U.S.-Iran tensions, are pressuring high-growth technology shares. After a substantial year-to-date rally, Dell’s premium valuation leaves less room for execution missteps, while supply constraints and memory costs could pressure AI-server margins.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Susquehanna set a $289.00 price objective on Dell Technologies and gave the stock a “neutral” rating in a report on Friday, May 29th. UBS Group reiterated an “outperform” rating on shares of Dell Technologies in a research report on Wednesday. Melius Research set a $735.00 price target on shares of Dell Technologies in a research note on Wednesday. William Blair began coverage on shares of Dell Technologies in a report on Monday, June 1st. They issued a “neutral” rating on the stock. Finally, Argus lifted their price objective on shares of Dell Technologies from $200.00 to $460.00 and gave the stock a “buy” rating in a report on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $531.86.

Insiders Place Their Bets

In other Dell Technologies news, Director Silver Lake Partners Iv, L.P. sold 138,885 shares of the business’s stock in a transaction on Monday, June 8th. The shares were sold at an average price of $398.13, for a total value of $55,294,285.05. Following the completion of the sale, the director directly owned 8,585 shares of the company’s stock, valued at $3,417,946.05. The trade was a 94.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Spv-2 L.P. Sl sold 131,040 shares of the company’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $398.13, for a total transaction of $52,170,955.20. Following the sale, the director owned 12,619 shares of the company’s stock, valued at approximately $5,024,002.47. The trade was a 91.22% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 2,134,674 shares of company stock worth $870,637,926. 41.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. California State Teachers Retirement System raised its holdings in Dell Technologies by 41,141.5% during the 2nd quarter. California State Teachers Retirement System now owns 198,605,353 shares of the technology company’s stock valued at $85,690,266,000 after buying an additional 198,123,786 shares during the last quarter. Norges Bank bought a new stake in Dell Technologies in the 4th quarter worth $607,349,000. Wellington Management Group LLP increased its position in shares of Dell Technologies by 4,279.1% in the third quarter. Wellington Management Group LLP now owns 3,005,776 shares of the technology company’s stock valued at $426,129,000 after acquiring an additional 2,937,137 shares during the period. Invesco Ltd. increased its position in shares of Dell Technologies by 50.4% in the fourth quarter. Invesco Ltd. now owns 7,301,008 shares of the technology company’s stock valued at $919,051,000 after acquiring an additional 2,445,854 shares during the period. Finally, Michael & Susan Dell Foundation raised its stake in shares of Dell Technologies by 533.3% during the fourth quarter. Michael & Susan Dell Foundation now owns 2,682,335 shares of the technology company’s stock valued at $337,652,000 after acquiring an additional 2,258,797 shares during the last quarter. Institutional investors own 76.37% of the company’s stock.

Dell Technologies Stock Up 4.6%

The company has a market capitalization of $288.25 billion, a PE ratio of 35.33, a price-to-earnings-growth ratio of 0.94 and a beta of 1.34. The stock’s fifty day moving average price is $433.44 and its two-hundred day moving average price is $301.96.

About Dell Technologies

Dell Technologies Inc is a multinational technology company that designs, manufactures and sells a broad range of information technology products, solutions and services. Its offerings span client computing devices (consumer and commercial laptops and desktops), enterprise infrastructure (servers, storage systems and networking equipment), software and cloud infrastructure, and a variety of professional services such as IT consulting, deployment, managed services and financing solutions. The company serves organizations of all sizes as well as individual consumers, with products and services aimed at enabling digital transformation and modern IT environments.

Founded by Michael Dell in 1984, the company grew from a direct-to-consumer PC business into a diversified IT provider through organic expansion and strategic acquisitions.