Dell Technologies (NYSE:DELL) Releases Q3 2027 Earnings Guidance

Key Points

• Dell issued significantly above-consensus Q3 FY2027 guidance, forecasting EPS of $6.50 versus the $4.07 consensus estimate and revenue of $49.0 billion versus $41.9 billion. Full-year FY2027 EPS guidance was set at $25.50.
• Despite the strong outlook, Dell shares fell 7.3% to $422.54 in Tuesday trading, amid heightened expectations for its AI-server growth and concerns about supply constraints, memory costs and margins.
• Analysts remain broadly bullish, with a “Moderate Buy” consensus rating and an average price target of $485.23; Dell also pays a quarterly dividend of $0.63 per share, while insiders have sold more than $954 million of stock over the past 90 days.

Dell Technologies (NYSE:DELL - Get Free Report) issued an update on its third quarter 2027 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 6.500-6.500 for the period, compared to the consensus EPS estimate of 4.070. The company issued revenue guidance of $49.0 billion-$49.0 billion, compared to the consensus revenue estimate of $41.9 billion. Dell Technologies also updated its FY 2027 guidance to 25.500-25.500 EPS.

Dell Technologies Stock Down 7.3%

Shares of DELL stock traded down $33.47 during trading on Tuesday, reaching $422.54. The company's stock had a trading volume of 14,189,237 shares, compared to its average volume of 8,103,475. Dell Technologies has a one year low of $110.22 and a one year high of $514.00. The business has a fifty day moving average price of $433.55 and a 200-day moving average price of $299.86. The company has a market cap of $273.85 billion, a price-to-earnings ratio of 33.56, a price-to-earnings-growth ratio of 0.95 and a beta of 1.33.

Dell Technologies (NYSE:DELL - Get Free Report) last released its earnings results on Tuesday, September 1st. The technology company reported $7.04 earnings per share for the quarter, beating 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 business had revenue of $46.97 billion during the quarter, compared to the consensus estimate of $44.89 billion. 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. Research analysts anticipate that Dell Technologies will post 18.32 EPS for the current year.

Dell Technologies Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Tuesday, July 21st were given a dividend of $0.63 per share. The ex-dividend date of this dividend was Tuesday, July 21st. This represents a $2.52 annualized dividend and a yield of 0.6%. Dell Technologies's dividend payout ratio is 20.02%.

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. Wells Fargo & Company raised their price target on Dell Technologies from $505.00 to $545.00 and gave the company an "overweight" rating in a research note on Friday, August 14th. Argus increased their price objective on Dell Technologies from $200.00 to $460.00 and gave the company a "buy" rating in a report on Friday, May 29th. Roth Capital started coverage on shares of Dell Technologies in a report on Friday, May 29th. They set a "buy" rating on the stock. Royal Bank Of Canada began coverage on shares of Dell Technologies in a research note on Friday, May 29th. They issued an "outperform" rating for the company. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Dell Technologies from $280.00 to $500.00 and gave the stock an "overweight" rating in a research note on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $485.23.

Insider Transactions at Dell Technologies

In related news, Director Spv-2 L.P. Sl sold 59,492 shares of the business's stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $453.54, for a total value of $26,982,001.68. Following the completion of the transaction, the director owned 89,222 shares of the company's stock, valued at $40,465,745.88. The trade was a 40.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Silver Lake Partners Iv, L.P. sold 68,706 shares of the business'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 $31,160,919.24. Following 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. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 2,332,712 shares of company stock valued at $954,404,039. 41.50% of the stock is currently owned by company insiders.

Key Stories Impacting Dell Technologies

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

• Positive Sentiment: Analysts expect strong fiscal Q2 results, including approximately 49% year-over-year revenue growth to $44.48 billion, with some Wall Street firms anticipating an earnings beat and a higher full-year outlook. Dell Poised for Strong Fiscal Q2 Beat, Outlook Raise, BofA Says
• Positive Sentiment: Dell’s AI server business remains the central growth driver. The company reportedly delivered $16.1 billion of AI servers last quarter and has a substantial backlog, while observers believe its full ownership of the AI server operation could help it benefit from continued data-center investment. DELL Earnings Justifying Stock Rally? AI Growth & Backlog Delivery Critical
• Neutral Sentiment: The earnings release is a major near-term catalyst. Options markets imply an approximately 11% post-earnings move, highlighting unusually high volatility and the potential for a sharp reaction in either direction. DELL Stock – Options Traders Brace for 11.4% Move after Q2 Results
• Negative Sentiment: The stock’s steep rally has raised the bar for results. Investors are focused not only on AI revenue growth and backlog conversion, but also on whether supply constraints, rising memory costs and server margins could weaken profitability. Dell Reports Tuesday, and Its Server Margin Is Where the AI Memory Bill Finally Reaches the Stock
• Negative Sentiment: Broader risk-off trading is adding pressure: higher oil prices, inflation concerns and rising Treasury yields are weighing on technology stocks and making Dell’s premium valuation more difficult to justify. Dell stock falls before earnings: strong AI demand will not alone sustain 250% rally

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in DELL. Wellington Management Group LLP boosted its position in Dell Technologies by 4,279.1% during the third quarter. Wellington Management Group LLP now owns 3,005,776 shares of the technology company's stock valued at $426,129,000 after acquiring an additional 2,937,137 shares during the last quarter. Invesco Ltd. increased its stake in shares of Dell Technologies by 50.4% in the 4th quarter. Invesco Ltd. now owns 7,301,008 shares of the technology company's stock valued at $919,051,000 after acquiring an additional 2,445,854 shares in the last quarter. Michael & Susan Dell Foundation lifted its position in shares of Dell Technologies by 533.3% during the 4th quarter. Michael & Susan Dell Foundation now owns 2,682,335 shares of the technology company's stock valued at $337,652,000 after acquiring an additional 2,258,797 shares during the period. AQR Capital Management LLC grew its holdings in Dell Technologies by 628.5% in the second quarter. AQR Capital Management LLC now owns 1,374,078 shares of the technology company's stock worth $168,462,000 after purchasing an additional 1,185,454 shares during the period. Finally, Ameriprise Financial Inc. increased its stake in Dell Technologies by 37.1% in the second quarter. Ameriprise Financial Inc. now owns 3,203,732 shares of the technology company's stock valued at $392,802,000 after purchasing an additional 867,071 shares in the last quarter. Institutional investors own 76.37% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source