Dell Technologies (NYSE:DELL) Shares Gap Up Following Better-Than-Expected Earnings

Dell Technologies Inc. (NYSE:DELL) shares gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. 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 changing hands.

The technology company reported $3.89 earnings per share (EPS) 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 the consensus estimate of $31.60 billion. Dell Technologies had a net margin of 5.23% and a negative return on equity of 229.86%. The business’s revenue was up 39.5% compared to the same quarter last year. During the same quarter last year, the firm posted $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 business also recently declared a quarterly dividend, which was paid on Friday, January 30th. Stockholders of record on Tuesday, January 20th were given a dividend of $0.525 per share. This represents a $2.10 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date was Tuesday, January 20th. Dell Technologies’s dividend payout ratio (DPR) is presently 24.08%.

Key Dell Technologies News

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

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on DELL. Citic Securities lifted their price objective on Dell Technologies from $150.00 to $160.00 and gave the stock a “buy” rating in a report on Friday, November 28th. Wall Street Zen upgraded Dell Technologies from a “hold” rating to a “buy” rating in a research report on Saturday. Weiss Ratings reiterated a “hold (c+)” rating on shares of Dell Technologies in a research report on Wednesday, January 21st. Barclays raised their target price on shares of Dell Technologies from $148.00 to $168.00 and gave the company an “overweight” rating in a report on Friday. Finally, JPMorgan Chase & Co. reduced their price target on shares of Dell Technologies from $170.00 to $155.00 and set an “overweight” rating on the stock in a report on Thursday, February 19th. Seventeen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $160.47.

Insider Activity

In other news, Director Egon Durban sold 71,000 shares of Dell Technologies stock in a transaction dated 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 completion of the sale, the director directly owned 1,172,428 shares in the company, valued at $161,935,755.36. The trade was a 5.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 42.00% of the stock is owned by corporate insiders.

Institutional Trading of Dell Technologies

Hedge funds and other institutional investors have recently bought and sold shares of the company. BDFS Capital LLC purchased a new position in shares of Dell Technologies during the 4th quarter worth $445,000. Banque Transatlantique SA acquired a new position in Dell Technologies in the fourth quarter valued at $506,000. Sit Investment Associates Inc. purchased a new position in Dell Technologies during the fourth quarter worth about $2,159,000. MidFirst Bank acquired a new stake in Dell Technologies in the 4th quarter worth about $378,000. Finally, Titan Investment Management LLC acquired a new position in shares of Dell Technologies during the 4th quarter valued at about $3,237,000. 76.37% of the stock is owned by hedge funds and other institutional investors.

Dell Technologies Stock Performance

The company’s fifty day moving average price is $121.17 and its two-hundred day moving average price is $131.92. The firm has a market capitalization of $98.01 billion, a PE ratio of 16.96, a price-to-earnings-growth ratio of 0.97 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.