Key Takeaways
- Dell Technologies delivered July-quarter revenue of $46.97 billion, representing a 58% increase from the prior year and surpassing analyst projections of $44.89 billion
- The company’s adjusted earnings per share of $7.04 significantly exceeded Wall Street’s consensus forecast of $4.91
- AI server order volume reached $61 billion during the quarter, bringing Dell’s cumulative AI backlog to roughly $95 billion
- The company upgraded its fiscal 2027 revenue projection to around $192 billion and lifted non-GAAP EPS expectations to $25.50
- Analyst firms including JPMorgan and Mizuho increased their price objectives, with targets reaching as high as $635, while maintaining mostly bullish stances
Shares of Dell Technologies (DELL) experienced a substantial rally, climbing approximately 7% during intraday trading following the release of what many consider one of the company’s most impressive quarterly performances to date. The stock peaked at $534.99 before stabilizing near $525.66, with trading volume exceeding typical daily levels by roughly 30%.
The company’s July quarter performance delivered revenue of $46.97 billion, marking a 57.7% jump compared to the same period last year and significantly exceeding analyst expectations of $44.89 billion. The adjusted earnings per share figure of $7.04 demolished the Street’s consensus estimate of $4.91, beating it by over two dollars.
Strength was evident throughout Dell’s portfolio. The traditional Server and Networking division skyrocketed 122%, AI server operations doubled with 100% growth, Storage climbed 26%, and the Client Solutions Group (CSG) PC segment advanced 20%.
AI Server Backlog Captures Investor Attention
Dell’s AI server business generated $16.4 billion in revenue during the quarter. The company secured $61 billion in fresh AI server orders, elevating its cumulative AI pipeline to approximately $95 billion. This substantial backlog figure has become a focal point for market watchers, although certain analysts are placing greater emphasis on the profit margins associated with fulfilling these orders rather than the raw backlog numbers.
The Infrastructure Solutions Group (ISG) posted margins of 15%, representing an impressive 630-basis-point improvement year-over-year. Strong Storage segment performance contributed materially to this margin enhancement.
Evercore ISI withdrew Dell from its Tactical Outperform roster following the earnings beat, attributing the decision to the stock’s substantial price movement, while maintaining the company as a Top Pick with an Outperform recommendation and $575 target. The firm highlighted ongoing supply constraints at Dell, which it views as favorable for sustained expansion.
Forward Outlook Receives Substantial Boost
Dell elevated its fiscal 2027 revenue forecast to approximately $192 billion, suggesting roughly 70% year-over-year expansion. The company now anticipates non-GAAP earnings per share of about $25.50, a dramatic increase from the previous guidance of $17.90.
For the third quarter of fiscal 2027, Dell projected EPS of $6.50.
Multiple Wall Street firms responded by raising their price objectives. JPMorgan increased its target to $635. Mizuho boosted its target to $600 while maintaining an Outperform rating. Raymond James adjusted upward to $617. Goldman Sachs similarly elevated its target, pointing to robust AI server demand and expanding margins. Morgan Stanley and TD Cowen maintained positive outlooks.
Deutsche Bank launched coverage with a Hold recommendation and $480 price target, representing the only reserved perspective among prominent financial institutions.
The overall analyst consensus across 36 firms currently registers as “Moderate Buy,” with a mean price target of $553.79. The breakdown includes one Strong Buy rating, 26 Buy recommendations, and nine Hold ratings.
Regarding insider activity, director-level entities divested more than $58 million in shares during July at approximately $453 per share. Institutional ownership accounts for 76.37% of outstanding stock.
The company also announced a quarterly dividend of $0.63 per share, scheduled for payment on October 30 to shareholders of record as of October 20.
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