Dell Technologies (NYSE:DELL) Posts Earnings Results, Beats Expectations By $1.82 EPS

Dell Technologies (NYSE:DELL) released its quarterly earnings data on Thursday. The technology company reported $4.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.04 by $1.82, FiscalAI reports. The business had revenue of $43.84 billion for the quarter, compared to analysts’ expectations of $35.74 billion. Dell Technologies had a negative return on equity of 324.36% and a net margin of 6.28%.The firm’s quarterly revenue was up 87.5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.55 EPS. Dell Technologies updated its FY 2027 guidance to 17.900-17.900 EPS and its Q2 2027 guidance to 4.800-4.800 EPS.

Here are the key takeaways from Dell Technologies’ conference call:

• Dell reported a record first quarter, with revenue up 88% to $43.8 billion and EPS up 214% to $4.86, citing strong execution across the business and meaningful operating leverage.
• AI remained the standout growth driver, with $24.4 billion of AI orders, $16.1 billion of AI server revenue, and a record $51.3 billion AI backlog as demand continued to outpace supply.
• Management raised full-year guidance, now expecting $165 billion-$169 billion in revenue and $17.90 EPS at the midpoint, reflecting confidence in a stronger second half despite only being 90 days into the fiscal year.
• Traditional servers and PCs saw broad-based demand strength, with Dell pointing to refresh cycles, AI inference, and higher-density infrastructure needs as drivers, though the company said it remains supply constrained.
• Cash generation and shareholder returns were strong, with $4.1 billion in operating cash flow in Q1 and $2.1 billion returned to shareholders through buybacks and dividends.

Dell Technologies Trading Up 32.8%

Shares of DELL opened at $420.96 on Friday. The firm has a market cap of $271.83 billion, a PE ratio of 33.44, a P/E/G ratio of 1.16 and a beta of 0.99. The firm has a fifty day simple moving average of $216.82 and a two-hundred day simple moving average of $159.38. Dell Technologies has a 1-year low of $106.38 and a 1-year high of $429.15.

Insider Buying and Selling at Dell Technologies

In other news, COO Jeffrey W. Clarke sold 116,000 shares of the company’s stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $182.48, for a total value of $21,167,680.00. Following the completion of the sale, the chief operating officer directly owned 1,687,414 shares in the company, valued at $307,919,306.72. This represents a 6.43% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Richard Troy Sharp sold 1,538 shares of the company’s 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 completion of the sale, the chief accounting officer owned 8,030 shares of the company’s stock, valued at $1,198,557.80. This trade represents a 16.07% decrease in their ownership of the stock. 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 worth $576,654,105. 41.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Dell Technologies

Hedge funds and other institutional investors have recently modified their holdings of the stock. Rossby Financial LCC increased its stake in shares of Dell Technologies by 968.4% in the 4th 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. Kemnay Advisory Services Inc. purchased a new stake in shares of Dell Technologies in the 4th quarter worth $29,000. WealthCollab LLC increased its stake in shares of Dell Technologies by 82.0% in the 2nd quarter. WealthCollab LLC now owns 253 shares of the technology company’s stock worth $31,000 after purchasing an additional 114 shares in the last quarter. State of Wyoming purchased a new stake in shares of Dell Technologies in the 2nd quarter worth $33,000. Finally, Elkhorn Partners Limited Partnership increased its stake in shares of Dell Technologies by 50.0% in the 4th quarter. Elkhorn Partners Limited Partnership now owns 300 shares of the technology company’s stock worth $38,000 after purchasing an additional 100 shares in the last quarter. 76.37% of the stock is currently owned by hedge funds and other institutional investors.

Key Dell Technologies News

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

• Positive Sentiment: Dell reported revenue of $43.8 billion, up 88% year over year, and EPS of $4.86, far above Wall Street expectations, signaling a major earnings beat. Dell Technologies Delivers First Quarter Fiscal 2027 Financial Results
• Positive Sentiment: AI server demand was the main catalyst: Dell said AI-optimized server revenue jumped 757% to $16.1 billion, with $24.4 billion of AI orders and a record backlog, showing demand remains very strong. Reuters: Dell raises annual forecasts as AI data center buildout fuels demand
• Positive Sentiment: Management raised full-year guidance to $165 billion-$169 billion in revenue and lifted AI-server revenue expectations, which suggests the growth surge may continue into the next quarters. WSJ: Dell Raises Fiscal Year Outlook After Sales Soar 88%
• Positive Sentiment: Analysts turned more bullish after the report, with multiple firms raising price targets sharply, which can add momentum to the stock. Benzinga: Dell’s AI-Fueled Surge May Be Far From Over
• Neutral Sentiment: The Pentagon contract is strategically important and supports Dell’s enterprise/software relationships, but investors appear to be focusing more on the AI-server earnings beat than the contract itself. CNBC: Dell wins a $9.7 billion Pentagon software deal

Wall Street Analyst Weigh In

Several research firms recently issued reports on DELL. Wells Fargo & Company upped their price objective on Dell Technologies from $270.00 to $505.00 and gave the company an “overweight” rating in a research report on Friday. Wall Street Zen raised Dell Technologies from a “buy” rating to a “strong-buy” rating in a research report on Saturday. UBS Group set a $700.00 price objective on Dell Technologies in a research report on Friday. Mizuho upped their price objective on Dell Technologies from $215.00 to $260.00 and gave the company an “outperform” rating in a research report on Wednesday, May 6th. Finally, Piper Sandler upped their price objective on Dell Technologies from $167.00 to $497.00 and gave the company an “overweight” rating in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $421.00.

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.