Dell Technologies (NYSE:DELL) Posts Quarterly Earnings Results, Beats Estimates By $1.90 EPS

Key Points

• Dell Technologies beat quarterly expectations with earnings of $4.86 per share, topping the $2.96 consensus by $1.90. Revenue also came in well above estimates at $43.84 billion versus $35.74 billion expected.
• The stock jumped sharply on the report, rising 4.2% to $318.22 in midday trading on unusually heavy volume. Dell’s market capitalization is now about $205.5 billion.
• Investor sentiment remains positive thanks to major AI and enterprise infrastructure momentum, including a five-year, roughly $9.7 billion Pentagon software contract. Several analysts have also raised ratings or price targets on the stock recently.

Dell Technologies (NYSE:DELL - Get Free Report) announced its quarterly earnings results on Thursday. The technology company reported $4.86 earnings per share (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 analysts' expectations of $35.74 billion.

Dell Technologies Trading Up 4.2%

DELL traded up $12.90 during midday trading on Thursday, reaching $318.22. The company's stock had a trading volume of 15,539,924 shares, compared to its average volume of 8,024,470. The firm has a market capitalization of $205.49 billion, a price-to-earnings ratio of 36.49, a PEG ratio of 1.12 and a beta of 0.99. Dell Technologies has a 1 year low of $106.38 and a 1 year high of $327.73. The stock's 50-day moving average is $208.08 and its 200-day moving average is $156.33.

Insider Transactions at Dell Technologies

In other news, insider William F. Scannell sold 143,067 shares of the stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $165.00, for a total value of $23,606,055.00. Following the sale, the insider directly owned 21,779 shares of the company's stock, valued at approximately $3,593,535. This represents a 86.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director V (Gp) L.L.C. Slta sold 382,000 shares of the stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $176.81, for a total value of $67,541,420.00. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 3,571,688 shares of company stock valued at $576,654,105. 41.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Dell Technologies

Institutional investors have recently made changes to their positions in the company. Brighton Jones LLC boosted its holdings in Dell Technologies by 42.7% in the fourth quarter. Brighton Jones LLC now owns 3,011 shares of the technology company's stock worth $347,000 after purchasing an additional 901 shares during the last quarter. Sivia Capital Partners LLC purchased a new position in Dell Technologies in the second quarter worth about $328,000. DV Equities LLC purchased a new position in Dell Technologies in the fourth quarter worth about $53,000. Resources Management Corp CT ADV boosted its position in Dell Technologies by 364.3% in the fourth quarter. Resources Management Corp CT ADV now owns 650 shares of the technology company's stock worth $82,000 after purchasing an additional 510 shares during the last quarter. Finally, Johnson Financial Group Inc. boosted its position in Dell Technologies by 51.4% in the fourth quarter. Johnson Financial Group Inc. now owns 424 shares of the technology company's stock worth $53,000 after purchasing an additional 144 shares during the last quarter. Hedge funds and other institutional investors own 76.37% of the company's stock.

Key Headlines Impacting Dell Technologies

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

• Positive Sentiment: Dell won a five-year, approximately $9.7 billion Pentagon/Department of Defense software contract to manage Microsoft-related software and cloud services for the U.S. military. The deal is being seen as a major revenue and credibility boost, helping drive investor optimism. CNBC article
• Positive Sentiment: The contract adds to Dell’s momentum in AI and enterprise infrastructure, reinforcing the view that demand for its servers and software-related offerings remains strong. Reuters article
• Positive Sentiment: Investors are also positioning for Dell’s upcoming earnings release, with expectations that AI server momentum and broader enterprise demand could support another strong quarter. Zacks article
• Neutral Sentiment: Several articles focused on Dell’s recent stock rally and the market’s attention on whether the company can extend its strong year-to-date run; these pieces reflect sentiment rather than new business developments. Barron's article

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the stock. Morgan Stanley upgraded shares of Dell Technologies from an "underweight" rating to a "buy" rating in a research report on Friday, May 22nd. Bank of America boosted their price target on shares of Dell Technologies from $246.00 to $280.00 and gave the company a "buy" rating in a research report on Monday, May 18th. Wall Street Zen cut Dell Technologies from a "strong-buy" rating to a "buy" rating in a research note on Saturday, May 16th. JPMorgan Chase & Co. upped their price target on Dell Technologies from $205.00 to $280.00 and gave the stock an "overweight" rating in a research note on Friday, May 15th. Finally, Piper Sandler reduced their price target on Dell Technologies from $172.00 to $167.00 and set an "overweight" rating on the stock in a research note on Friday, February 27th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $216.05.

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.

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