Dell Technologies (NYSE:DELL) Issues Quarterly Earnings Results

Dell Technologies (NYSE:DELL) posted its quarterly earnings results on Thursday. The technology company reported $4.86 EPS for the quarter, beating the consensus estimate of $2.96 by $1.90, FiscalAI reports. Dell Technologies had a net margin of 5.23% and a negative return on equity of 236.90%. The company had revenue of $43.84 billion for the quarter, compared to analyst estimates of $35.74 billion. During the same period in the prior year, the company earned $1.55 earnings per share. The firm’s revenue was up 87.5% on a year-over-year basis. Dell Technologies updated its FY 2027 guidance to 17.900-17.900 EPS and its Q2 2027 guidance to 4.800-4.800 EPS.

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

• Dell reported a record first quarter, with revenue up 88% to $43.8 billion and EPS up 214% to $4.86, citing strong execution across the business and meaningful operating leverage.
• AI remained the standout growth driver, with $24.4 billion of AI orders, $16.1 billion of AI server revenue, and a record $51.3 billion AI backlog as demand continued to outpace supply.
• Management raised full-year guidance, now expecting $165 billion-$169 billion in revenue and $17.90 EPS at the midpoint, reflecting confidence in a stronger second half despite only being 90 days into the fiscal year.
• Traditional servers and PCs saw broad-based demand strength, with Dell pointing to refresh cycles, AI inference, and higher-density infrastructure needs as drivers, though the company said it remains supply constrained.
• Cash generation and shareholder returns were strong, with $4.1 billion in operating cash flow in Q1 and $2.1 billion returned to shareholders through buybacks and dividends.

Dell Technologies Price Performance

DELL opened at $318.22 on Friday. The company’s 50 day simple moving average is $211.39 and its two-hundred day simple moving average is $157.54. Dell Technologies has a 1-year low of $106.38 and a 1-year high of $327.73. The firm has a market capitalization of $205.49 billion, a price-to-earnings ratio of 36.49, a price-to-earnings-growth ratio of 1.12 and a beta of 0.99.

Insider Buying and Selling

In other news, Director V (Gp) L.L.C. Slta sold 510,000 shares of Dell Technologies stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $146.83, for a total transaction of $74,883,300.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Ellen Jamison Kullman sold 150,346 shares of Dell Technologies stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $145.13, for a total transaction of $21,819,714.98. Following the sale, the director directly owned 65,662 shares in the company, valued at approximately $9,529,526.06. The trade was a 69.60% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 3,571,688 shares of company stock worth $576,654,105 over the last three months. Corporate insiders own 41.50% of the company’s stock.

Institutional Trading of Dell Technologies

Institutional investors have recently added to or reduced their stakes in the stock. Rossby Financial LCC increased its holdings in 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 purchasing an additional 184 shares during the last quarter. Kemnay Advisory Services Inc. acquired a new position in shares of Dell Technologies in the fourth quarter worth $29,000. WealthCollab LLC grew its stake in shares of Dell Technologies by 82.0% in the second quarter. WealthCollab LLC now owns 253 shares of the technology company’s stock worth $31,000 after acquiring an additional 114 shares in the last quarter. State of Wyoming acquired a new position in shares of Dell Technologies during the second quarter worth $33,000. Finally, Elkhorn Partners Limited Partnership grew its stake 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 purchasing an additional 100 shares in the last quarter. Institutional investors and hedge funds own 76.37% of the company’s stock.

Dell Technologies News Summary

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

• Positive Sentiment: Dell reported record Q1 revenue and earnings that beat analyst estimates by a wide margin, reinforcing that demand for its AI servers remains exceptionally strong.
• Positive Sentiment: Management raised full-year revenue and profit guidance, which suggests the current AI buildout is translating into a much larger earnings opportunity than previously expected.
• Positive Sentiment: AI-optimized server revenue surged, and the company said it booked large AI orders, supporting the view that Dell is becoming a major beneficiary of AI infrastructure spending.
• Neutral Sentiment: Dell also won a $9.7 billion Pentagon software contract, which adds to investor optimism, though the earnings beat and guidance raise appear to be the main drivers of the stock move.
• Negative Sentiment: Management noted supply constraints and a memory-chip crunch, which could limit how quickly Dell can convert demand into revenue if component shortages persist.

Analysts Set New Price Targets

DELL has been the topic of several recent analyst reports. The Goldman Sachs Group increased their target price on shares of Dell Technologies from $215.00 to $230.00 in a research note on Thursday, April 30th. Evercore lifted their price objective on Dell Technologies from $240.00 to $270.00 and gave the stock an “outperform” rating in a report on Tuesday, May 19th. Daiwa Securities Group lifted their price objective on Dell Technologies from $150.00 to $170.00 and gave the stock an “outperform” rating in a report on Friday, March 6th. Raymond James Financial lifted their price objective on Dell Technologies from $166.00 to $182.00 and gave the stock an “outperform” rating in a report on Friday, February 27th. Finally, Barclays lifted their price objective on Dell Technologies from $148.00 to $168.00 and gave the stock an “overweight” rating in a report on Friday, February 27th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $245.50.

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.