Dell Technologies (NYSE:DELL) Issues Earnings Results

Dell Technologies (NYSE:DELL) released its earnings results on Tuesday. The technology company reported $7.04 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.91 by $2.13, FiscalAI reports. Dell Technologies had a net margin of 6.28% and a negative return on equity of 366.90%. 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 prior year, the company posted $1.70 EPS. The company’s 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 Price Performance

NYSE DELL opened at $422.54 on Wednesday. Dell Technologies has a one year low of $110.22 and a one year high of $514.00. The firm has a market cap of $273.85 billion, a P/E ratio of 33.56, a P/E/G ratio of 0.94 and a beta of 1.34. The stock’s 50-day moving average is $433.44 and its 200-day moving average is $301.96.

Dell Technologies Dividend Announcement

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

Key Headlines Impacting Dell Technologies

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

• Positive Sentiment: Dell reported fiscal Q2 revenue of approximately $47 billion, up 57.7% year over year and above the roughly $44.9 billion consensus estimate. Adjusted earnings of $7.04 per share exceeded expectations near $4.91. Dell again lifts forecasts as AI demand powers record results
• Positive Sentiment: AI-optimized server revenue reached $16.4 billion, doubling year over year. Record AI-server orders of $60.9 billion and a backlog reported at approximately $95 billion provide visibility into future growth. Dell AI Server Momentum Accelerates With Record AI Orders
• 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 sits well above analyst forecasts. Dell Technologies Boosts Fiscal Year Outlook
• Positive Sentiment: Morgan Stanley, Goldman Sachs and Citigroup raised their price targets, signaling that analysts see potential for further earnings estimates and valuation revisions. Dell shares rise as demand jumps for AI servers
• Neutral Sentiment: Dell declared a quarterly dividend of $0.63 per share, payable October 30 to shareholders of record October 20, supporting shareholder returns but offering a relatively modest yield.
• Negative Sentiment: Investors may remain focused on execution risks, including securing scarce components for AI systems, potential server-margin pressure from elevated memory costs, and the need to convert the large backlog into profitable revenue.
• Negative Sentiment: Dell’s sharp prior rally leaves elevated expectations, while broader weakness in technology stocks, higher bond yields and geopolitical-driven oil prices could limit gains. Reported insider activity also shows substantial selling, although such transactions may reflect diversification rather than deteriorating fundamentals.

Insiders Place Their Bets

In related news, Director Spv-2 L.P. Sl sold 59,492 shares of the stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $453.54, for a total transaction of $26,982,001.68. Following the completion of the sale, the director directly owned 89,222 shares of the company’s stock, valued at approximately $40,465,745.88. This represents a 40.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Lynn Vojvodich Radakovich sold 2,022 shares of Dell Technologies stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $438.21, for a total transaction of $886,060.62. Following the completion of the transaction, the director directly owned 25,267 shares in the company, valued at approximately $11,072,252.07. The trade was a 7.41% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 2,134,674 shares of company stock valued at $870,637,926 in the last quarter. 41.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Dell Technologies

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Rossby Financial LCC increased its holdings in Dell Technologies by 968.4% during the 4th quarter. Rossby Financial LCC now owns 203 shares of the technology company’s stock worth $26,000 after purchasing an additional 184 shares in the last quarter. Kemnay Advisory Services Inc. bought a new stake in shares of Dell Technologies in the fourth quarter valued at about $29,000. WealthCollab LLC boosted its position in shares of Dell Technologies by 82.0% during the second quarter. WealthCollab LLC now owns 253 shares of the technology company’s stock worth $31,000 after buying an additional 114 shares during the period. State of Wyoming acquired a new position in shares of Dell Technologies during the second quarter worth about $33,000. Finally, Elkhorn Partners Limited Partnership grew its holdings in shares of Dell Technologies by 50.0% during the fourth quarter. Elkhorn Partners Limited Partnership now owns 300 shares of the technology company’s stock worth $38,000 after buying an additional 100 shares in the last quarter. 76.37% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. William Blair began coverage on shares of Dell Technologies in a report on Monday, June 1st. They issued a “neutral” rating on the stock. Guggenheim upgraded shares of Dell Technologies to a “buy” rating in a research report on Monday, June 1st. Truist Financial increased their price target on Dell Technologies from $170.00 to $360.00 and gave the company a “hold” rating in a research note on Friday, May 29th. Wall Street Zen raised Dell Technologies from a “buy” rating to a “strong-buy” rating in a research note on Saturday, May 30th. Finally, Barclays reiterated an “overweight” rating on shares of Dell Technologies in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and nine have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Dell Technologies has a consensus rating of “Moderate Buy” and a consensus price target of $501.18.

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.