Dell Technologies (NYSE:DELL) Shares Gap Up on Earnings Beat

Dell Technologies Inc. (NYSE:DELL)’s stock price gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $121.45, but opened at $137.37. Dell Technologies shares last traded at $145.2880, with a volume of 14,303,664 shares trading hands.

The technology company reported $3.89 earnings per share for the quarter, beating analysts’ consensus estimates of $3.53 by $0.36. The business had revenue of $33.38 billion during the quarter, compared to analyst estimates of $31.60 billion. Dell Technologies had a net margin of 5.23% and a negative return on equity of 229.86%. The company’s quarterly revenue was up 39.5% compared to the same quarter last year. During the same period in the previous year, the business earned $2.68 EPS. Dell Technologies has set its Q1 2027 guidance at 2.900-2.900 EPS and its FY 2027 guidance at 12.900-12.900 EPS.

Dell Technologies Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, January 30th. Shareholders of record on Tuesday, January 20th were issued a $0.525 dividend. The ex-dividend date of this dividend was Tuesday, January 20th. This represents a $2.10 dividend on an annualized basis and a yield of 1.4%. Dell Technologies’s dividend payout ratio is currently 28.00%.

Key Headlines Impacting Dell Technologies

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

• Positive Sentiment: Q4 beat and raised FY‑2027 guidance: Dell reported Q4 EPS and revenue above consensus and issued FY‑2027 revenue and EPS guidance well above street expectations, which investors see as evidence the company is capitalizing on AI demand. Article Link
• Positive Sentiment: Massive AI-server opportunity: Management projects roughly $50 billion in AI server revenue for the fiscal year and highlighted a record backlog (~$43B), signaling continued strong enterprise demand for AI infrastructure. Article Link
• Positive Sentiment: AI revenue surge this quarter: Dell disclosed AI‑optimized server revenue jumped materially year-over-year (near ~$9B for the quarter, +300%+ ranges reported), showing the business already contributing significant top-line growth. Article Link
• Positive Sentiment: Record annual results & shareholder actions: Dell posted record full‑year revenue and signaled durability in its data‑center franchise; the company also boosted its dividend, which supports investor confidence. Article Link
• Positive Sentiment: Analyst optimism: Multiple firms raised price targets and kept/raised ratings after the print (examples include Barclays, Raymond James, Mizuho), reinforcing the buy-side narrative around Dell’s AI momentum. Article Link
• Neutral Sentiment: Supply‑chain / cost note: Management acknowledged memory cost pressures and supply dynamics, but said Dell has largely managed shortages — a potential margin headwind if component costs rise further. Article Link
• Negative Sentiment: Not all analysts are uniformly bullish: some firms (e.g., Morgan Stanley) remain cautious and maintain underweight ratings with lower targets, reminding investors there is still debate on valuation and sustainability. Article Link

Analyst Ratings Changes

Several brokerages have recently weighed in on DELL. Dbs Bank upgraded shares of Dell Technologies to a “moderate buy” rating in a research note on Monday, January 5th. Citigroup reduced their target price on shares of Dell Technologies from $165.00 to $160.00 and set a “buy” rating for the company in a report on Tuesday, February 17th. Mizuho increased their price target on shares of Dell Technologies from $175.00 to $180.00 and gave the stock an “outperform” rating in a research report on Friday. Wall Street Zen raised shares of Dell Technologies from a “hold” rating to a “buy” rating in a research report on Saturday. Finally, Morgan Stanley upped their price objective on Dell Technologies from $101.00 to $110.00 and gave the stock an “underweight” rating in a research note on Friday. Seventeen investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Dell Technologies presently has a consensus rating of “Moderate Buy” and a consensus price target of $160.89.

Insider Activity at Dell Technologies

In related news, Director Egon Durban sold 71,000 shares of Dell Technologies stock in a transaction on Tuesday, December 9th. The shares were sold at an average price of $138.12, for a total transaction of $9,806,520.00. Following the transaction, the director owned 1,172,428 shares in the company, valued at approximately $161,935,755.36. The trade was a 5.71% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 42.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Dell Technologies

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Brighton Jones LLC boosted its stake in shares of Dell Technologies by 42.7% in the fourth quarter. Brighton Jones LLC now owns 3,011 shares of the technology company’s stock worth $347,000 after acquiring an additional 901 shares during the period. Sivia Capital Partners LLC purchased a new position in Dell Technologies in the 2nd quarter worth approximately $328,000. Nisa Investment Advisors LLC boosted its stake in Dell Technologies by 748.9% in the 2nd quarter. Nisa Investment Advisors LLC now owns 8,540 shares of the technology company’s stock worth $1,047,000 after purchasing an additional 7,534 shares during the period. Ashton Thomas Private Wealth LLC purchased a new stake in Dell Technologies during the 2nd quarter valued at approximately $364,000. Finally, Bessemer Group Inc. raised its position in shares of Dell Technologies by 22.0% during the second quarter. Bessemer Group Inc. now owns 2,179 shares of the technology company’s stock valued at $266,000 after buying an additional 393 shares during the last quarter. 76.37% of the stock is owned by institutional investors.

Dell Technologies Stock Up 21.8%

The firm’s fifty day moving average price is $121.17 and its 200 day moving average price is $131.99. The stock has a market cap of $98.01 billion, a PE ratio of 16.96, a P/E/G ratio of 0.79 and a beta of 1.03.

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.