GET DAILY SIGNALSDell Technologies (DELL) Delivers Record Revenue and EPS on AI Server Momentum
Key Takeaways
- Dell Technologies (DELL) reported record revenue of $47.0 billion for its second quarter of fiscal 2027, up 58% year over year.
- Non-GAAP diluted earnings per share (EPS) reached a record $7.04, up 203% and well above the roughly $4.87–$4.97 analysts expected.
- The Infrastructure Solutions Group (ISG), which includes servers and storage, grew 89% to a record $31.8 billion, driven by surging demand for AI-optimized servers.
- Dell exited the quarter with a record $95 billion AI backlog after booking $60.9 billion in AI server orders during the quarter.
- The company raised its full-year fiscal 2027 revenue outlook by $25 billion to $192 billion and lifted its non-GAAP EPS guidance to $25.50.
- Dell returned a record $4.3 billion to shareholders through buybacks and dividends, and declared a $0.63 per-share quarterly dividend.
Why This Report Matters
Dell Technologies has become one of the stocks investors monitor most closely as a direct play on the AI infrastructure buildout. Its fiscal 2027 second quarter, which ended July 31, 2026, shows how well the company is turning strong demand for AI servers into profitable growth. After a strong first quarter that also beat expectations, this update provides a useful window into enterprise data center spending, component supply, and the staying power of AI-related capital expenditures. I was particularly interested in whether the record order book would support continued margin improvement and higher guidance.
The Quarter in Detail
Revenue came in at a record $47.0 billion, a 58% increase from $29.8 billion the prior year and ahead of the roughly $44.8 billion to $45.3 billion consensus range. GAAP diluted EPS reached a record $6.34, up 273%, while non-GAAP diluted EPS hit $7.04, up 203% and well above the $4.87–$4.97 range analysts had projected. Net income rose 255% to $4.13 billion.
Performance was solid across the board. ISG revenue jumped 89% to $31.8 billion, with AI-optimized servers at $16.4 billion (up 100%), traditional servers and networking at $10.5 billion (up 122%), and storage at $4.9 billion (up 26%). The Client Solutions Group, Dell’s PC business, grew 20% to $15.0 billion, including 22% growth in commercial revenue. Operating cash flow was $2.2 billion. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
How the Market Responded
The results strengthened the positive view of Dell’s AI positioning. Shares, which had eased in regular trading before the release, rose roughly 6% to 8% in after-hours trading as investors absorbed the beat and the raised full-year outlook. The reaction highlighted that Dell is not only expanding AI server revenue quickly but also improving profitability, with operating expenses holding at about 8% of revenue—among the lowest levels in the company’s history. The size of the EPS beat, supported by scale and a favorable product mix, drove much of the positive response, even as some investors remain aware of ongoing supply constraints.
Guidance and Areas Worth Watching
Dell enters the second half of fiscal 2027 with solid momentum, though expectations for the stock are already elevated. Management guided third-quarter revenue to about $49.0 billion, up roughly 80% year over year, and non-GAAP EPS of about $6.50. For the full year, the company raised its revenue target to $192 billion and its non-GAAP EPS outlook to $25.50, while increasing its full-year AI-optimized server revenue expectation to $74 billion.
A few factors stand out for continued monitoring. Supply availability remains a constraint, with management noting ongoing shortages of DRAM and NAND memory, CPUs, hard drives, and certain AI-related components. How effectively Dell navigates these limits will influence near-term growth. Gross margin trends will also be important, as AI server sales typically carry lower margins than traditional businesses. Finally, the PC recovery continues as a secondary factor, with Dell expecting CSG operating margins to moderate somewhat as it balances growth, share, and profitability.
Integrating AI Tools Into My Workflow
I often turn to Tickeron’s AI Screener when evaluating companies like this one. It lets me quickly filter for stocks showing similar technical patterns, fundamental strength, and momentum signals, which helps surface ideas and compare opportunities more efficiently than manual review alone. The tool has become a regular part of how I cross-check earnings-driven moves against broader market trends.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
DELL in -22.40% downward trend, sliding for three consecutive days on November 05, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where DELL declined for three days, in 182 of 283 cases, the price declined further within the following month. The odds of a continued downward trend are 64%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 30, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on DELL as a result. In 52 of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 58%.
DELL moved below its 50-day moving average on October 14, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for DELL crossed bearishly below the 50-day moving average on October 22, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 7 of 12 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 58%.
The Aroon Indicator for DELL entered a downward trend on November 09, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where DELL's RSI Indicator exited the oversold zone, 20 of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 83%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +9.28% 3-day Advance, the price is estimated to grow further. Considering data from situations where DELL advanced for three days, in 257 of 318 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
DELL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 2 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: DELL's P/B Ratio (-146.380) is very low in comparison to the industry average of (-6.197). P/E Ratio (18.903) is within average values for comparable stocks, (-3.670). Projected Growth (PEG Ratio) (0.638) is also within normal values, averaging (23.994). Dividend Yield (0.008) settles around the average of (0.012) among similar stocks. P/S Ratio (2.474) is also within normal values, averaging (51.774).
The Tickeron SMR rating for this company is 17 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 42 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 59 (best 1 - 100 worst), indicating steady price growth. DELL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 61 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
What is the Symmetrical Triangle Bottom (Bearish) Pattern?
What Is the Earned Income Tax Credit (EITC)?
Mastercard (MA) Stock Analysis: Performance, Earnings, Dividends, and Market Trends as of May 28, 2025
Cable Titans: Top Stocks Analysis
FAQ: How do you transfer stocks or a list of stocks to another product?
General Information
a developer of computers and related products and services
Industry ComputerProcessingHardware
Advertisement