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

Key Points

• Dell shares gapped up sharply after the company reported better-than-expected fiscal Q1 results, opening at $418 versus a prior close of $317.05.
• Results beat estimates by a wide margin, with EPS of $4.86 versus $2.96 expected and revenue of $43.84 billion versus $35.74 billion forecast, driven by an 87.5% year-over-year revenue surge.
• Management raised guidance, lifting full-year revenue outlook to $165 billion-$169 billion and pointing to strong AI server demand, including a projection that AI-optimized server revenue could reach about $60 billion in FY2027.

Dell Technologies Inc. (NYSE:DELL - Get Free Report)'s stock price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $317.05, but opened at $418.00. Dell Technologies shares last traded at $419.5460, with a volume of 12,805,538 shares traded.

The technology company reported $4.86 earnings per share for the quarter, beating analysts' consensus estimates of $2.96 by $1.90. The company had revenue of $43.84 billion for the quarter, compared to analyst estimates of $35.74 billion. Dell Technologies had a negative return on equity of 236.90% and a net margin of 5.23%.The company's revenue for the quarter was up 87.5% on a year-over-year basis. During the same quarter last year, the company earned $1.55 earnings per share. Dell Technologies has set its FY 2027 guidance at 17.900-17.900 EPS and its Q2 2027 guidance at 4.800-4.800 EPS.

Dell Technologies News Summary

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

• Positive Sentiment: Dell posted fiscal Q1 revenue of $43.8 billion, up 88% year over year, while adjusted EPS of $4.86 easily beat estimates; management also raised full-year revenue guidance to $165 billion-$169 billion and said AI-optimized server revenue could reach about $60 billion in FY2027. Article Title
• Positive Sentiment: The company also won a roughly $9.7 billion Pentagon software contract, adding another catalyst and reinforcing confidence in Dell’s enterprise and government business. Article Title
• Positive Sentiment: Analysts turned more constructive after the report, with Susquehanna upgrading Dell to “positive” and other firms lifting price targets as they cited stronger AI demand and a long runway for growth. Article Title
• Neutral Sentiment: Management said demand is not the main constraint — supply is — as chip and memory shortages continue to limit how quickly Dell can fulfill AI server orders. Article Title

Analyst Ratings Changes

Several research analysts recently weighed in on DELL shares. Bank of America restated a "buy" rating on shares of Dell Technologies in a report on Friday. The Goldman Sachs Group lifted their target price on shares of Dell Technologies from $215.00 to $230.00 in a research report on Thursday, April 30th. UBS Group reaffirmed a "neutral" rating and issued a $440.00 target price on shares of Dell Technologies in a report on Friday. TD Cowen increased their price target on Dell Technologies from $150.00 to $450.00 and gave the company a "hold" rating in a research report on Friday. Finally, Argus lifted their price target on Dell Technologies from $200.00 to $460.00 and gave the stock a "buy" rating in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, Dell Technologies has an average rating of "Moderate Buy" and an average target price of $370.33.

Insider Activity at Dell Technologies

In other news, CFO David Alan Kennedy sold 19,500 shares of the company's stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $182.53, for a total transaction of $3,559,335.00. Following the transaction, the chief financial officer owned 183,097 shares of the company's stock, valued at $33,420,695.41. This represents a 9.63% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Richard Troy Sharp sold 1,538 shares of the stock in a transaction on Thursday, March 19th. The stock was sold at an average price of $149.26, for a total value of $229,561.88. Following the transaction, the chief accounting officer owned 8,030 shares of the company's stock, valued at $1,198,557.80. The trade was a 16.07% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 3,571,688 shares of company stock worth $576,654,105 over the last 90 days. Corporate insiders own 41.50% of the company's stock.

Hedge Funds Weigh In On Dell Technologies

Large investors have recently modified their holdings of the business. Providence Capital Advisors LLC purchased a new stake in Dell Technologies in the third quarter worth approximately $7,060,000. Campbell Capital Management Inc. boosted its stake in shares of Dell Technologies by 34.0% in the 4th quarter. Campbell Capital Management Inc. now owns 80,189 shares of the technology company's stock valued at $10,094,000 after purchasing an additional 20,362 shares in the last quarter. Lingohr Asset Management GmbH raised its position in Dell Technologies by 733.9% in the 3rd quarter. Lingohr Asset Management GmbH now owns 58,898 shares of the technology company's stock worth $8,320,000 after purchasing an additional 51,835 shares during the period. ProShare Advisors LLC lifted its stake in Dell Technologies by 10.5% in the fourth quarter. ProShare Advisors LLC now owns 80,686 shares of the technology company's stock worth $10,157,000 after purchasing an additional 7,642 shares during the last quarter. Finally, Prospera Financial Services Inc grew its stake in shares of Dell Technologies by 54.3% during the third quarter. Prospera Financial Services Inc now owns 41,492 shares of the technology company's stock valued at $5,886,000 after buying an additional 14,604 shares during the last quarter. Hedge funds and other institutional investors own 76.37% of the company's stock.

Dell Technologies Stock Up 30.2%

The stock has a market cap of $266.59 billion, a PE ratio of 47.35, a P/E/G ratio of 1.12 and a beta of 0.99. The company has a fifty day moving average price of $211.39 and a 200 day moving average price of $157.54.

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.

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