Dell Technologies (NYSE:DELL) Announces Earnings Results, Beats Estimates By $2.13 EPS

Dell Technologies (NYSE:DELL) released its earnings results on Tuesday. The technology company reported $7.04 earnings per share for the quarter, beating the consensus estimate of $4.91 by $2.13, FiscalAI reports. Dell Technologies had a negative return on equity of 529.54% and a net margin of 7.53%.The company had revenue of $46.97 billion for the quarter, compared to the consensus estimate of $44.89 billion. During the same period in the previous year, the business earned $1.70 earnings per share. Dell Technologies’s quarterly revenue was up 57.7% compared to the same quarter last year. Dell Technologies updated its FY 2027 guidance to 25.500-25.500 EPS and its Q3 2027 guidance to 6.500-6.500 EPS.

Here are the key takeaways from Dell Technologies’ conference call:

• Record Q2 performance: Revenue rose 58% to $47 billion and non-GAAP EPS increased 203% to $7.04, while operating leverage drove operating expenses down to 8.5% of revenue.
• AI demand accelerated sharply. Dell booked a record $60.9 billion in AI orders, recognized $16.4 billion in AI server revenue, and ended the quarter with a $95 billion backlog spanning more than 6,500 customers.
• Demand broadened beyond AI, with traditional server and networking revenue up 122%, storage up 26%, and CSG revenue up 20%; Dell said it gained more than 10 points of traditional server share over the past two quarters.
• Dell raised full-year revenue guidance by $25 billion to $192 billion and expects $25.50 in non-GAAP EPS, with AI server revenue projected to triple year over year to $74 billion and operating expenses at approximately 8% of revenue.
• Supply remains a significant constraint. Dell cited shortages in DRAM, NAND, CPUs, disk drives, optical components, substrates, power components, and cooling infrastructure, while also acknowledging that some margin benefits and pricing conditions may not persist at current levels.

Dell Technologies Trading Up 15.8%

NYSE DELL opened at $492.00 on Thursday. Dell Technologies has a 12 month low of $110.22 and a 12 month high of $514.00. The stock’s 50 day moving average is $434.61 and its 200 day moving average is $304.63. The stock has a market cap of $318.87 billion, a PE ratio of 28.55, a P/E/G ratio of 0.88 and a beta of 1.34.

Dell Technologies Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Investors 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 dividend on an annualized basis and a yield of 0.5%. Dell Technologies’s payout ratio is currently 14.63%.

Dell Technologies News Summary

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

• Positive Sentiment: Dell reported record quarterly revenue of $46.97 billion, up 58% year over year, while adjusted earnings per share of $7.04 substantially exceeded the $4.91 analyst consensus. Net income increased 255% to approximately $4.1 billion. Dell again lifts forecasts as AI demand powers record results
• Positive Sentiment: AI-optimized server revenue doubled to $16.4 billion, quarterly AI-server orders reached a record $60.9 billion, and Dell’s AI backlog expanded to $95 billion. Investors view the backlog as evidence that data-center spending is translating into sizable future revenue. Dell Stock Jumps Nearly 10% as AI Backlog Hits $95 Billion
• Positive Sentiment: Management raised 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 came in well above consensus estimates. Dell surges after lifting fiscal 2027 forecast on AI server strength
• Positive Sentiment: Several analysts raised price targets, including JPMorgan’s increase to $635 with an overweight rating. Dell also declared a quarterly dividend of $0.63 per share and returned $4.3 billion through buybacks and dividends. Dell shares rise as demand jumps for AI servers
• Neutral Sentiment: Dell introduced the Dell 14S, a value-focused laptop for students and young adults featuring an aluminum design and up to 21 hours of battery life. The product broadens Dell’s consumer strategy beyond its premium XPS line, but its financial impact remains unproven. Meet the Dell 14S
• Negative Sentiment: Investors remain concerned about component shortages, execution risks, and whether AI-server growth can produce sustainable margins. Some analysts maintained Hold or downgraded the stock after its sharp run-up, while reported insider selling adds a cautionary signal.

Insider Buying and Selling at Dell Technologies

In related news, Director Silver Lake Partners Iv, L.P. sold 138,885 shares of the company’s stock in a transaction on Monday, June 8th. The shares were sold at an average price of $398.13, for a total transaction of $55,294,285.05. Following the completion of the transaction, the director owned 8,585 shares in the company, valued at approximately $3,417,946.05. This represents a 94.18% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Spv-2 L.P. Sl sold 131,040 shares of the firm’s stock in a transaction on 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 transaction, the director directly owned 12,619 shares of the company’s stock, valued at $5,024,002.47. The trade was a 91.22% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,738,596 shares of company stock worth $704,346,083 in the last three months. Insiders own 41.50% of the company’s stock.

Hedge Funds Weigh In On Dell Technologies

Several institutional investors have recently added to or reduced their stakes in the company. Invesco Ltd. increased its stake in Dell Technologies by 50.4% in the 4th quarter. Invesco Ltd. now owns 7,301,008 shares of the technology company’s stock worth $919,051,000 after acquiring an additional 2,445,854 shares during the last quarter. Axxcess Wealth Management LLC raised its holdings in shares of Dell Technologies by 3.1% during the 4th quarter. Axxcess Wealth Management LLC now owns 5,094 shares of the technology company’s stock worth $641,000 after acquiring an additional 152 shares in the last quarter. Corient Private Wealth LLC boosted its position in shares of Dell Technologies by 100.2% during the 4th quarter. Corient Private Wealth LLC now owns 222,352 shares of the technology company’s stock valued at $27,990,000 after acquiring an additional 111,291 shares during the last quarter. Strive Financial Group LLC purchased a new position in shares of Dell Technologies in the fourth quarter valued at $58,000. Finally, Ameriflex Group Inc. grew its holdings in shares of Dell Technologies by 42,450.0% in the fourth quarter. Ameriflex Group Inc. now owns 851 shares of the technology company’s stock valued at $107,000 after purchasing an additional 849 shares in the last quarter. Hedge funds and other institutional investors own 76.37% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have recently commented on DELL. Bank of America raised their price objective on Dell Technologies from $505.00 to $600.00 and gave the stock a “buy” rating in a research note on Monday. Evercore increased their target price on shares of Dell Technologies from $550.00 to $575.00 and gave the stock an “outperform” rating in a report on Wednesday. KeyCorp restated a “sector weight” rating on shares of Dell Technologies in a research note on Wednesday. JPMorgan Chase & Co. lifted their price target on shares of Dell Technologies from $565.00 to $635.00 and gave the company an “overweight” rating in a report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft assumed coverage on shares of Dell Technologies in a research report on Monday. They issued a “hold” rating and a $480.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and nine have given a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $550.70.

Dell Technologies Company Profile

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.