Dell Technologies (NYSE:DELL) Shares Gap Up Following Strong Earnings

Dell Technologies Inc. (NYSE:DELL)’s share price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $317.05, but opened at $418.00. Dell Technologies shares last traded at $419.5460, with a volume of 12,805,538 shares.

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

Dell Technologies News Summary

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

• Positive Sentiment: Dell posted fiscal Q1 revenue of $43.8 billion, up 88% year over year, while adjusted EPS of $4.86 easily beat estimates; management also raised full-year revenue guidance to $165 billion-$169 billion and said AI-optimized server revenue could reach about $60 billion in FY2027. Article Title
• Positive Sentiment: The company also won a roughly $9.7 billion Pentagon software contract, adding another catalyst and reinforcing confidence in Dell’s enterprise and government business. Article Title
• Positive Sentiment: Analysts turned more constructive after the report, with Susquehanna upgrading Dell to “positive” and other firms lifting price targets as they cited stronger AI demand and a long runway for growth. Article Title
• Neutral Sentiment: Management said demand is not the main constraint — supply is — as chip and memory shortages continue to limit how quickly Dell can fulfill AI server orders. Article Title

Analyst Upgrades and Downgrades

DELL has been the subject of several recent analyst reports. Wells Fargo & Company upped their price objective on shares of Dell Technologies from $180.00 to $270.00 and gave the company an “overweight” rating in a research note on Friday, May 22nd. Zacks Research raised Dell Technologies from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, April 21st. Susquehanna raised Dell Technologies from a “neutral” rating to a “positive” rating in a research report on Friday. Daiwa Securities Group increased their price objective on Dell Technologies from $150.00 to $170.00 and gave the stock an “outperform” rating in a report on Friday, March 6th. Finally, TD Cowen lifted their price objective on Dell Technologies from $150.00 to $450.00 and gave the stock a “hold” rating in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $370.33.

Insider Transactions at Dell Technologies

In other Dell Technologies news, Director V (Gp) L.L.C. Slta sold 510,000 shares of Dell Technologies stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $146.83, for a total transaction of $74,883,300.00. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Ellen Jamison Kullman sold 150,346 shares of the stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $145.13, for a total value of $21,819,714.98. Following the completion of the transaction, the director directly owned 65,662 shares of the company’s stock, valued at $9,529,526.06. This represents a 69.60% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 3,571,688 shares of company stock valued at $576,654,105. 41.50% of the stock is owned by insiders.

Institutional Trading of Dell Technologies

A number of hedge funds and other institutional investors have recently modified their holdings of DELL. Commonwealth Retirement Investments LLC purchased a new position in Dell Technologies during the 4th quarter valued at about $25,000. Rossby Financial LCC grew its holdings in Dell Technologies by 968.4% in 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 during the period. Navalign LLC bought a new position in shares of Dell Technologies during the fourth quarter valued at approximately $29,000. Kemnay Advisory Services Inc. purchased a new position in shares of Dell Technologies during the fourth quarter valued at approximately $29,000. Finally, WealthCollab LLC boosted its position 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. 76.37% of the stock is owned by hedge funds and other institutional investors.

Dell Technologies Trading Up 30.2%

The company has a market cap of $266.59 billion, a PE ratio of 47.35, a P/E/G ratio of 1.12 and a beta of 0.99. The firm has a 50 day moving average of $211.39 and a two-hundred day moving average of $157.54.

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.