Dell Technologies (NYSE:DELL) Shares Up 15.8% on Better-Than-Expected Earnings

Dell Technologies Inc. (NYSE:DELL)’s share price was up 15.8% during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $497.99 and last traded at $492.00. Approximately 36,368,551 shares changed hands during mid-day trading, an increase of 339% from the average session volume of 8,283,419 shares. The stock had previously closed at $425.00.

The technology company reported $7.04 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.91 by $2.13. Dell Technologies had a net margin of 6.28% and a negative return on equity of 366.90%. The firm had revenue of $46.97 billion for the quarter, compared to analyst estimates of $44.89 billion. During the same quarter in the prior year, the business posted $1.70 EPS. The business’s revenue was up 57.7% compared to the same quarter last year. 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 Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Investors 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 yield of 0.5%. Dell Technologies’s dividend payout ratio is currently 20.02%.

Key Dell Technologies News

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

• Positive Sentiment: Dell reported $47 billion in quarterly revenue, up approximately 58% year over year, while adjusted earnings per share reached $7.04 versus analyst expectations near $4.91. Infrastructure Solutions Group revenue rose 89%, and AI-optimized server revenue doubled to $16.4 billion. Dell again lifts forecasts as AI demand powers record results
• Positive Sentiment: The company 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 exceeded consensus estimates. Dell stock soars on blowout earnings outlook
• Positive Sentiment: AI server orders reached a record $60.9 billion, lifting Dell’s AI backlog to approximately $95 billion—roughly 84% of the company’s prior-year revenue—and reinforcing expectations for sustained data-center spending. Dell’s $95 Billion Backlog Answers the AI Question
• Positive Sentiment: Several Wall Street firms raised their price targets, including JPMorgan’s increase to $635 with an overweight rating. Analysts cited Dell’s execution, expanding AI revenue and record backlog as potential catalysts for additional upside. Dell’s AI Revenue More Than Doubles
• Neutral Sentiment: Dell declared a quarterly dividend of $0.63 per share, payable October 30 to shareholders of record October 20. The payout supports shareholder returns but is small relative to the earnings-driven catalyst.
• Negative Sentiment: Component shortages and higher memory costs could limit shipments or pressure server margins, creating execution risk despite the large backlog. Dell’s already-strong rally and elevated valuation also raise the bar for future results, while some analysts maintained neutral or hold ratings. Dell Q2 Earnings Call Pairs AI Scale With Supply Constraints

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on DELL shares. Melius Research upped their target price on Dell Technologies from $650.00 to $735.00 and gave the company a “buy” rating in a research report on Wednesday. Guggenheim raised Dell Technologies to a “buy” rating in a research note on Monday, June 1st. JPMorgan Chase & Co. upped their price objective on shares of Dell Technologies from $565.00 to $635.00 and gave the stock an “overweight” rating in a research report on Wednesday. HSBC raised shares of Dell Technologies to a “buy” rating in a report on Friday, May 29th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Dell Technologies in a report on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating and nine have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $547.32.

Insiders Place Their Bets

In other news, Director Silver Lake Partners Iv, L.P. sold 68,706 shares of the stock in a transaction dated Thursday, July 9th. The shares were sold at an average price of $453.54, for a total value of $31,160,919.24. Following the completion of the transaction, the director owned 67,990 shares of the company’s stock, valued at approximately $30,836,184.60. This represents a 50.26% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Silver Lake Partners V. De (Aiv sold 34,869 shares of the firm’s stock in a transaction that occurred on Thursday, July 9th. The shares were sold at an average price of $453.54, for a total transaction of $15,814,486.26. Following the completion of the sale, the director owned 43,961 shares in the company, valued at approximately $19,938,071.94. The trade was a 44.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 2,134,674 shares of company stock valued at $870,637,926 in the last quarter. Corporate insiders own 41.50% of the company’s stock.

Hedge Funds Weigh In On Dell Technologies

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. ProShare Advisors LLC grew its stake in shares of Dell Technologies by 10.5% during the 4th quarter. ProShare Advisors LLC now owns 80,686 shares of the technology company’s stock worth $10,157,000 after acquiring an additional 7,642 shares during the period. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund purchased a new stake in Dell Technologies during the fourth quarter valued at about $23,332,000. Plato Investment Management Ltd bought a new position in Dell Technologies during the second quarter worth about $5,913,000. Gabelli Funds LLC increased its stake in shares of Dell Technologies by 49.0% in the first quarter. Gabelli Funds LLC now owns 46,094 shares of the technology company’s stock worth $7,565,000 after purchasing an additional 15,150 shares in the last quarter. Finally, MUFG Securities EMEA plc raised its position in shares of Dell Technologies by 112.9% in the fourth quarter. MUFG Securities EMEA plc now owns 12,356 shares of the technology company’s stock valued at $1,555,000 after purchasing an additional 6,553 shares during the period. Institutional investors own 76.37% of the company’s stock.

Dell Technologies Stock Up 15.8%

The company has a market cap of $318.87 billion, a P/E ratio of 39.08, a price-to-earnings-growth ratio of 0.94 and a beta of 1.34. The firm’s 50-day moving average price is $433.44 and its 200-day moving average price is $301.96.

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.