Dell Technologies (NYSE:DELL) Shares Gap Up After Earnings Beat

Dell Technologies Inc. (NYSE:DELL)’s stock price gapped up before the market opened on Wednesday following a stronger than expected earnings report. 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 changing hands.

The technology company reported $7.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.91 by $2.13. The business had revenue of $46.97 billion for the quarter, compared to analyst estimates of $44.89 billion. Dell Technologies had a net margin of 6.28% and a negative return on equity of 366.90%. The firm’s revenue for the quarter was up 57.7% on a year-over-year basis. During the same quarter last year, the business posted $1.70 EPS. 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 announced 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. This represents a $2.52 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date is Tuesday, October 20th. Dell Technologies’s payout ratio is presently 20.02%.

Key Dell Technologies News

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 equities research analysts have recently commented on DELL shares. Mizuho boosted their target price on shares of Dell Technologies from $500.00 to $600.00 and gave the stock an “outperform” rating in a research report on Wednesday. Morgan Stanley boosted their price target on shares of Dell Technologies from $434.00 to $499.00 and gave the stock an “equal weight” rating in a report on Wednesday. Evercore reiterated an “outperform” rating and issued a $550.00 price objective on shares of Dell Technologies in a research note on Wednesday, August 19th. Bank of America lifted their target price on shares of Dell Technologies from $500.00 to $505.00 and gave the stock a “buy” rating in a research report on Monday. Finally, Citigroup restated a “buy” rating on shares of Dell Technologies in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $531.86.

Insiders Place Their Bets

In other Dell Technologies news, 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 directly owned 12,619 shares of the company’s stock, valued at $5,024,002.47. This represents a 91.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Silver Lake Partners Iv, L.P. sold 138,885 shares of the stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $398.13, for a total transaction of $55,294,285.05. Following the transaction, the director owned 8,585 shares of the company’s stock, valued at $3,417,946.05. This represents a 94.18% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 2,134,674 shares of company stock worth $870,637,926 in the last ninety days. Insiders own 41.50% of the company’s stock.

Hedge Funds Weigh In On Dell Technologies

A number of large investors have recently made changes to their positions in the stock. Commonwealth Retirement Investments LLC bought a new position in Dell Technologies in the 4th quarter worth about $25,000. Rossby Financial LCC lifted its holdings in shares of Dell Technologies by 968.4% in the fourth quarter. Rossby Financial LCC now owns 203 shares of the technology company’s stock worth $26,000 after buying an additional 184 shares in the last quarter. Cornerstone Financial Management LLC boosted its position in shares of Dell Technologies by 56.1% in the second quarter. Cornerstone Financial Management LLC now owns 64 shares of the technology company’s stock valued at $28,000 after acquiring an additional 23 shares during the period. Navalign LLC bought a new position in shares of Dell Technologies in the fourth quarter valued at approximately $29,000. Finally, Kemnay Advisory Services Inc. purchased a new position in Dell Technologies during the fourth quarter valued at approximately $29,000. 76.37% of the stock is owned by institutional investors.

Dell Technologies Trading Up 4.6%

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

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.