Dell Technologies (NYSE:DELL) Trading 32.8% Higher on Strong Earnings

Key Points

• Dell Technologies shares jumped 32.8% after the company reported much stronger-than-expected quarterly results, with adjusted EPS of $4.86 versus estimates of $2.96.
• Revenue surged to $43.84 billion, far above forecasts and up about 88% year over year, driven largely by booming demand for AI-optimized servers.
• Management raised full-year guidance for revenue and profit, while Wall Street turned more bullish with multiple analyst upgrades and higher price targets following the earnings beat.

Dell Technologies Inc. (NYSE:DELL - Get Free Report)'s stock price was up 32.8% on Friday following a better than expected earnings announcement. The stock traded as high as $429.15 and last traded at $420.9560. Approximately 41,508,068 shares changed hands during mid-day trading, an increase of 388% from the average daily volume of 8,497,379 shares. The stock had previously closed at $317.05.

The technology company reported $4.86 EPS for the quarter, topping the consensus estimate of $2.96 by $1.90. Dell Technologies had a negative return on equity of 236.90% and a net margin of 5.23%.The firm had revenue of $43.84 billion during the quarter, compared to analysts' expectations of $35.74 billion. During the same period last year, the business earned $1.55 earnings per share. Dell Technologies's quarterly revenue was up 87.5% compared to the same quarter last year. 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.

Key Dell Technologies News

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

• Positive Sentiment: Dell crushed earnings and revenue expectations, reporting $4.86 adjusted EPS on $43.84 billion in revenue, well above Wall Street estimates, with revenue up 88% year over year. BusinessWire Dell Q1 Results
• Positive Sentiment: AI server demand was the standout driver: Dell said AI-optimized server revenue surged, backlog and orders climbed sharply, and management lifted full-year guidance for both revenue and profit, signaling the AI buildout is still accelerating. Reuters Dell Raises Annual Forecasts
• Positive Sentiment: Wall Street responded with a wave of bullish analyst action, including multiple price-target hikes from firms such as Wells Fargo, JPMorgan, Citi, Raymond James, and Loop Capital, reinforcing the view that Dell still has upside after the rally. Benzinga Analyst Optimism
• Positive Sentiment: Dell also won a $9.7 billion Pentagon software contract, adding another catalyst and boosting sentiment ahead of earnings by highlighting sticky enterprise and government demand. CNBC Pentagon Deal
• Neutral Sentiment: The stock’s surge is also lifting other AI/server names such as Super Micro Computer, Hewlett Packard Enterprise, and NetApp, showing investors are broadly rotating into infrastructure plays tied to AI spending. MarketWatch Server Makers
• Negative Sentiment: Some commentary noted supply-chain and memory-chip constraints could limit how fast Dell can fulfill booming demand, which may temper expectations if component shortages persist. Benzinga Supply Constraints

Analysts Set New Price Targets

A number of analysts recently weighed in on DELL shares. Royal Bank Of Canada assumed coverage on shares of Dell Technologies in a research note on Friday. They issued an "outperform" rating on the stock. Weiss Ratings raised Dell Technologies from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, May 15th. HSBC upgraded Dell Technologies to a "buy" rating in a research note on Friday. Roth Mkm assumed coverage on Dell Technologies in a research report on Friday. They set a "buy" rating for the company. Finally, CLSA raised Dell Technologies to an "outperform" rating in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Dell Technologies currently has an average rating of "Moderate Buy" and an average price target of $421.00.

Insider Activity at Dell Technologies

In other news, insider William F. Scannell sold 143,067 shares of Dell Technologies stock in a transaction that occurred on Monday, March 23rd. The shares were sold at an average price of $165.00, for a total value of $23,606,055.00. Following the completion of the transaction, the insider owned 21,779 shares in the company, valued at approximately $3,593,535. The trade was 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, CFO David Alan Kennedy sold 19,500 shares of the business's stock in a transaction that occurred on Thursday, April 9th. The stock was sold at an average price of $182.53, for a total value of $3,559,335.00. Following the completion of the transaction, the chief financial officer directly owned 183,097 shares in the company, valued at $33,420,695.41. The trade was a 9.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 3,571,688 shares of company stock valued at $576,654,105. Insiders own 41.50% of the company's stock.

Institutional Trading of Dell Technologies

A number of hedge funds and other institutional investors have recently made changes to their positions in DELL. Commonwealth Retirement Investments LLC bought a new stake in Dell Technologies during the 4th quarter worth about $25,000. Rossby Financial LCC lifted its position in shares of Dell Technologies by 968.4% during the fourth quarter. Rossby Financial LCC now owns 203 shares of the technology company's stock worth $26,000 after purchasing an additional 184 shares in the last quarter. Navalign LLC acquired a new position in shares of Dell Technologies during the fourth quarter worth approximately $29,000. Kemnay Advisory Services Inc. bought a new stake in shares of Dell Technologies during the fourth quarter valued at approximately $29,000. Finally, WealthCollab LLC increased its holdings in shares of Dell Technologies by 82.0% in the second quarter. WealthCollab LLC now owns 253 shares of the technology company's stock valued at $31,000 after purchasing an additional 114 shares in the last quarter. 76.37% of the stock is currently owned by institutional investors and hedge funds.

Dell Technologies Stock Performance

The firm's 50-day moving average is $211.39 and its two-hundred day moving average is $157.54. The stock has a market cap of $271.83 billion, a P/E ratio of 48.27, a PEG ratio of 1.12 and a beta of 0.99.

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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