Dell Technologies (NYSE:DELL) Trading 15.8% Higher on Better-Than-Expected Earnings

Dell Technologies Inc. (NYSE:DELL)’s share price shot up 15.8% on Wednesday following a better than expected earnings announcement. The company traded as high as $497.99 and last traded at $492.00. Approximately 36,368,551 shares changed hands during trading, an increase of 339% from the average session volume of 8,283,419 shares. The stock had previously closed at $425.00.

The technology company reported $7.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.91 by $2.13. The firm had revenue of $46.97 billion for the quarter, compared to the consensus estimate of $44.89 billion. Dell Technologies had a negative return on equity of 366.90% and a net margin of 6.28%.The business’s quarterly revenue was up 57.7% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.70 earnings per share. 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.

Dell Technologies Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Tuesday, October 20th will be paid a $0.63 dividend. The ex-dividend date is Tuesday, October 20th. This represents a $2.52 annualized dividend and a yield of 0.5%. Dell Technologies’s dividend payout ratio (DPR) is currently 20.02%.

Key Dell Technologies News

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

• Positive Sentiment: Dell reported $47 billion in quarterly revenue, up approximately 58% year over year, while adjusted earnings per share reached $7.04 versus analyst expectations near $4.91. Infrastructure Solutions Group revenue rose 89%, and AI-optimized server revenue doubled to $16.4 billion. Dell again lifts forecasts as AI demand powers record results
• Positive Sentiment: The company raised fiscal 2027 revenue guidance to $192 billion from $167 billion and adjusted EPS guidance to $25.50 from $17.90. Third-quarter guidance of $49 billion in revenue and $6.50 EPS also exceeded consensus estimates. Dell stock soars on blowout earnings outlook
• Positive Sentiment: AI server orders reached a record $60.9 billion, lifting Dell’s AI backlog to approximately $95 billion—roughly 84% of the company’s prior-year revenue—and reinforcing expectations for sustained data-center spending. Dell’s $95 Billion Backlog Answers the AI Question
• Positive Sentiment: Several Wall Street firms raised their price targets, including JPMorgan’s increase to $635 with an overweight rating. Analysts cited Dell’s execution, expanding AI revenue and record backlog as potential catalysts for additional upside. Dell’s AI Revenue More Than Doubles
• Neutral Sentiment: Dell declared a quarterly dividend of $0.63 per share, payable October 30 to shareholders of record October 20. The payout supports shareholder returns but is small relative to the earnings-driven catalyst.
• Negative Sentiment: Component shortages and higher memory costs could limit shipments or pressure server margins, creating execution risk despite the large backlog. Dell’s already-strong rally and elevated valuation also raise the bar for future results, while some analysts maintained neutral or hold ratings. Dell Q2 Earnings Call Pairs AI Scale With Supply Constraints

Analysts Set New Price Targets

Several brokerages have recently weighed in on DELL. HSBC upgraded Dell Technologies to a “buy” rating in a research report on Friday, May 29th. Barclays upped their target price on shares of Dell Technologies from $550.00 to $603.00 and gave the stock an “overweight” rating in a report on Wednesday. Citic Securities increased their target price on shares of Dell Technologies from $160.00 to $505.00 and gave the stock a “buy” rating in a research note on Monday, June 1st. Susquehanna set a $289.00 price target on shares of Dell Technologies and gave the company a “neutral” rating in a report on Friday, May 29th. Finally, JPMorgan Chase & Co. upped their price target on shares of Dell Technologies from $565.00 to $635.00 and gave the stock an “overweight” rating in a report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, Dell Technologies presently has an average rating of “Moderate Buy” and a consensus price target of $547.32.

Insider Activity at Dell Technologies

In other news, Director Silver Lake Partners Iv, L.P. sold 68,706 shares of the firm’s stock in a transaction 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 sale, the director owned 67,990 shares in the company, valued at approximately $30,836,184.60. This trade represents a 50.26% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Spv-2 L.P. Sl sold 59,492 shares of the company’s stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $453.54, for a total transaction 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. This trade represents a 40.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 2,134,674 shares of company stock valued at $870,637,926. Company insiders own 41.50% of the company’s stock.

Institutional Investors Weigh In On Dell Technologies

Several hedge funds have recently added to or reduced their stakes in DELL. Commonwealth Retirement Investments LLC bought a new position in shares of Dell Technologies during the 4th quarter valued at about $25,000. Rossby Financial LCC lifted its position in 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 buying an additional 184 shares during the last quarter. Cornerstone Financial Management LLC boosted its stake in Dell Technologies by 56.1% in the second quarter. Cornerstone Financial Management LLC now owns 64 shares of the technology company’s stock worth $28,000 after buying an additional 23 shares in the last quarter. Navalign LLC bought a new position in Dell Technologies during the fourth quarter valued at approximately $29,000. Finally, Kemnay Advisory Services Inc. bought a new position in Dell Technologies during the fourth quarter valued at approximately $29,000. Institutional investors own 76.37% of the company’s stock.

Dell Technologies Trading Up 15.8%

The stock has a market capitalization of $318.87 billion, a P/E ratio of 39.08, a price-to-earnings-growth ratio of 0.94 and a beta of 1.34. The stock’s fifty day moving average price is $433.44 and its two-hundred day moving average price is $301.96.

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.