Dell Technologies (NYSE:DELL) Shares Gap Up After Better-Than-Expected Earnings

Shares of Dell Technologies Inc. (NYSE:DELL) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $121.45, but opened at $137.37. Dell Technologies shares last traded at $145.2880, with a volume of 14,303,664 shares traded.

The technology company reported $3.89 earnings per share for the quarter, beating the consensus estimate of $3.53 by $0.36. Dell Technologies had a negative return on equity of 234.84% and a net margin of 5.01%.The business had revenue of $33.38 billion for the quarter, compared to analysts’ expectations of $31.60 billion. During the same quarter in the previous year, the business posted $2.68 EPS. Dell Technologies’s revenue for the quarter was up 39.5% on a year-over-year basis. Dell Technologies has set its Q1 2027 guidance at 2.900-2.900 EPS and its FY 2027 guidance at 12.900-12.900 EPS.

Dell Technologies Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 30th. Stockholders of record on Tuesday, January 20th were given a dividend of $0.525 per share. The ex-dividend date of this dividend was Tuesday, January 20th. This represents a $2.10 annualized dividend and a dividend yield of 1.4%. Dell Technologies’s dividend payout ratio is currently 28.00%.

Dell Technologies News Summary

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

• Positive Sentiment: Blowout Q4 results — Dell reported record quarterly and full‑year revenue and topped EPS and revenue estimates, driving an after‑hours/pre‑market pop. The quarter was cited across outlets as a major beat that underpins the rally. Dell Technologies Stock Jumps on Strong Earnings
• Positive Sentiment: Explosive AI server growth — AI‑optimized server revenue surged ~342% year‑over‑year in the quarter (roughly $9B) and management forecast that AI server revenue will double in fiscal 2027, signaling sustained high‑margin infrastructure demand. Dell shares jump on forecast it will double AI server revenue
• Positive Sentiment: Very strong FY‑2027 guidance — Dell lifted FY guidance well above Street estimates (revenue range and EPS materially ahead of consensus), and cited a large AI server backlog, which supports revenue visibility for the year ahead. Dell Shares Soar on Explosive AI Server Growth
• Neutral Sentiment: Mixed near‑term guidance detail — while FY revenue and EPS guidance were strong, first‑quarter EPS guidance was slightly below some estimates; investors will watch how guidance cadence and margin assumptions play out. Dell forecasts fiscal 2027 revenue above estimates
• Neutral Sentiment: Operational headwinds noted — several reports flagged supply‑chain pressure and rising cost dynamics even as Dell said it has managed memory shortages better than peers; these factors could pressure near‑term margins. Q4 2026 Earnings Call Highlights
• Negative Sentiment: Legacy financial metrics remain a caution — Dell still shows a depressed return on equity and relatively modest net margins versus revenue scale; investors focused on long‑term returns may see these as risks despite top‑line momentum. DELL Earnings / Metrics

Analyst Upgrades and Downgrades

DELL has been the topic of a number of research reports. Barclays boosted their price target on Dell Technologies from $148.00 to $168.00 and gave the company an “overweight” rating in a report on Friday. Dbs Bank raised Dell Technologies to a “moderate buy” rating in a research report on Monday, January 5th. Weiss Ratings reissued a “hold (c+)” rating on shares of Dell Technologies in a research report on Wednesday, January 21st. Mizuho raised their target price on shares of Dell Technologies from $175.00 to $180.00 and gave the company an “outperform” rating in a research report on Friday. Finally, Zacks Research downgraded shares of Dell Technologies from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, November 18th. Seventeen analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $160.89.

Insiders Place Their Bets

In related news, Director Egon Durban sold 71,000 shares of the business’s stock in a transaction on Tuesday, December 9th. The stock was sold at an average price of $138.12, for a total value of $9,806,520.00. Following the completion of the sale, the director directly owned 1,172,428 shares in the company, valued at $161,935,755.36. The trade was a 5.71% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 42.00% of the company’s stock.

Institutional Investors Weigh In On Dell Technologies

Large investors have recently added to or reduced their stakes in the stock. Winnow Wealth LLC acquired a new stake in shares of Dell Technologies during the 2nd quarter worth $25,000. Commonwealth Retirement Investments LLC acquired a new stake in Dell Technologies during the fourth quarter worth about $25,000. Rossby Financial LCC raised its position in shares of Dell Technologies by 968.4% in the 4th quarter. Rossby Financial LCC now owns 203 shares of the technology company’s stock valued at $26,000 after buying an additional 184 shares in the last quarter. Westside Investment Management Inc. boosted its position in shares of Dell Technologies by 84.7% during the 2nd quarter. Westside Investment Management Inc. now owns 218 shares of the technology company’s stock worth $27,000 after acquiring an additional 100 shares in the last quarter. Finally, Twin Peaks Wealth Advisors LLC bought a new position in Dell Technologies in the second quarter valued at approximately $28,000. Institutional investors and hedge funds own 76.37% of the company’s stock.

Dell Technologies Price Performance

The firm’s 50-day simple moving average is $120.74 and its 200 day simple moving average is $131.92. The firm has a market capitalization of $96.43 billion, a price-to-earnings ratio of 19.40, a P/E/G ratio of 0.80 and a beta of 1.03.

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.