Key Takeaways
- Shares of Dell Technologies declined 3.39% even as analysts expressed optimism before the company’s September 1 quarterly report.
- J.P. Morgan reaffirmed its Buy recommendation with a $565 price objective, anticipating management will lift revenue projections.
- Projections for AI-server market expansion in 2026 have surged past 80%, a significant increase from the 64% forecast issued 90 days earlier.
- Expectations for broader server market growth in 2026 have climbed to 30%, compared to the earlier 22% projection.
- Analysts project Q2 earnings at $4.91 per share with revenues approaching $44.5 billion.
Shares of Dell Technologies (DELL) retreated 3.39% on August 28, despite receiving a vote of confidence from J.P. Morgan analysts just days before the technology giant’s second-quarter earnings announcement scheduled for September 1.
Analyst Joseph Cardoso at J.P. Morgan reiterated his Buy stance on the stock while establishing a $565 price objective. His expectation centers on the likelihood that Dell will once again elevate its Fiscal Year 2027 revenue projections during the upcoming earnings disclosure.
The company currently projects a robust 47% revenue expansion for the fiscal year. While impressive on its surface, Cardoso suggests that actual performance trends may prompt management to increase this guidance for a second consecutive quarter.
The optimistic perspective is primarily anchored in artificial intelligence infrastructure developments. Market research firm 650 Group has revised its AI-server market growth projection for 2026 to exceed 80% on a year-over-year basis. This represents a substantial increase from the 64% growth rate anticipated just one quarter earlier.
This dramatic upward revision in such a compressed timeframe indicates that market demand is substantially outpacing previous industry assumptions. As a major participant in this segment, Dell stands to benefit directly from accelerating AI-server adoption rates.
Conventional Server Market Adds to Positive Momentum
Artificial intelligence isn’t the sole catalyst behind the upbeat sentiment. Demand across the broader server ecosystem is also demonstrating enhanced strength. Current projections for total server market growth in 2026 now exceed 30%, representing a significant jump from the previous 22% estimate.
According to J.P. Morgan, recent quarterly results throughout the technology sector, combined with proprietary channel research, substantiate this improved forecast. This evidence strengthens the firm’s conviction that Dell’s existing guidance contains room for upward adjustment.
While Cardoso anticipates another positive revision, he doesn’t expect the magnitude to match the substantial increase delivered three months prior. Nevertheless, the trajectory remains decidedly upward.
For the upcoming quarter, consensus estimates call for adjusted earnings of $4.91 per share and GAAP earnings of $4.43 per share. Revenue projections cluster around $44.5 billion, representing a 51% year-over-year increase from the $29.78 billion recorded in the comparable period.
Wall Street’s Perspective on DELL Stock
The company has exceeded earnings expectations in five out of the past six reporting periods. The single quarterly shortfall occurred in the period concluding April 2025, when actual results of $1.55 fell short of the $1.69 consensus estimate.
The most recent quarterly report for the period ending April 2026 delivered a substantial positive surprise. Dell announced earnings of $4.86 per share versus the $2.94 analyst consensus, representing an impressive 65% upside beat. Such performance helps explain the continued favorable sentiment surrounding the stock.
Among Wall Street analysts, DELL holds a Moderate Buy consensus rating, supported by 12 Buy recommendations, five Hold ratings, and zero Sell ratings issued during the past three months.
The average price target across these analysts stands at $519.36, suggesting approximately 14% potential appreciation from present trading levels. The median price objective of $500 represents roughly 9.6% upside from the most recent closing price of $456.24.
Dell Technologies is scheduled to announce second-quarter financial results on September 1 for the fiscal period that concluded on July 31, 2026.
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