Dell Technologies (NYSE: DELL ) is set to report earnings on May 29, 2025, after the market close. Despite waning expectations by analysts, lowering revenue and earnings forecasts going into the start of FY 2026, investments in building out data center capacity remain strong. I believe DELLMichael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industri ...

Group 1 - The demand for AI-supportive servers has significantly improved investor sentiment towards Dell, which was previously viewed as a legacy stock [1] - Dell's stock price has more than tripled from 2022 to mid-2024, reaching an all-time high (ATH) above $150 [1] - The focus on long-term growth and dividend growth investing highlights the importance of profitability, margins, free cash flow stability, and returns on invested capital [1]

Core Insights - Dell Technologies Inc. operates in the computer hardware industry and has expanded into the AI infrastructure market [1] - The company has two main segments: the Infrastructure Solutions Group (ISG) and the Client Solutions Group (CSG) [1] - Approximately 50% of the company's revenue comes from the U.S. market [1]

Core Insights - Dell Technologies is set to report its first-quarter fiscal 2026 results on May 29, with expected revenues between $22.5 billion and $23.5 billion, indicating a 3% year-over-year growth at the midpoint of $23 billion [1] - The Zacks Consensus Estimate for revenues is $23.10 billion, suggesting a 3.86% growth from the previous year, while the consensus for earnings is $1.71 per share, reflecting a year-over-year growth of 34.65% [2] Financial Performance - Dell Technologies has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average earnings surprise of 5.13% [3] - The anticipated revenue growth for the combined Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) is 6% year-over-year at the midpoint, with ISG expected to grow in the low teens and CSG revenues expected to remain flat [5] Market Dynamics - The ISG revenues are estimated at $10.379 billion, indicating an 11.2% year-over-year growth, while CSG revenues are pegged at $12.237 billion, suggesting a 2.25% year-over-year growth [6] - The demand for AI-optimized servers is expected to have positively impacted Dell's fiscal first-quarter results, driven by digital transformation and interest in generative AI applications [4][7] Competitive Position - Dell Technologies' leadership in AI-optimized servers, including the PowerEdge 9680, has contributed to its growth, with a reported increase of $1.7 billion in AI server orders in the previous quarter [7] - The company's shares have underperformed the broader Zacks Computer & Technology sector year-to-date, losing 2.7% compared to the sector's 3.6% return, attributed to macroeconomic challenges and trade tensions [8] Valuation Metrics - Dell Technologies shares are considered undervalued, with a Value Score of B and a forward 12-month price-to-sales ratio of 0.75X, significantly lower than the sector's average of 6.12X [11] Strategic Partnerships - Dell's expanding partner base, including collaborations with NVIDIA, Microsoft, and Meta Platforms, is likely to have driven growth during the fiscal first quarter [13][14][15] - The partnership with NVIDIA aims to accelerate enterprise AI adoption, which is expected to reflect positively in the upcoming quarter's performance [14]

Group 1: Upcoming Earnings Reports - Nvidia, Costco, Dell, and Salesforce are expected to release quarterly reports that could significantly impact their sectors and the broader market [1] - AutoZone and Okta are set to report on Tuesday, with AutoZone's stock being a solid performer and Okta anticipated to have a strong quarter [2] - Dick's Sporting Goods and Macy's will report on Wednesday, with Macy's being labeled as a "chronically underperforming department store chain" [3] Group 2: Company-Specific Insights - Nvidia's stock is currently in a precarious position, but there are expectations for discussions around its growing software arm during earnings [4] - Salesforce's future revenue growth is uncertain, with mixed opinions on its agentic AI platform's impact, and there are rumors of renewed acquisition talks for Informatica [4] - Costco typically reports consistent earnings, but its stock tends to decline post-earnings announcements, suggesting investors should wait before buying [5] Group 3: Market Context and Economic Indicators - The Labor Department will release a key inflation metric, the personal consumption expenditures report, which is crucial for understanding inflation trends amid rising tariffs [6] - Marvell Technology and Dell are both considered integral to the data center sector, with Dell expected to report strong results despite speculation about Marvell's performance [6]

Core Viewpoint - Analysts forecast that Dell Technologies will report quarterly earnings of $1.71 per share, reflecting a year-over-year increase of 34.7% and revenues of $23.1 billion, which is a 3.9% increase compared to the previous year [1]. Earnings Projections - Over the past 30 days, the consensus EPS estimate has been adjusted upward by 8%, indicating a reassessment of initial projections by covering analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts project 'Net Revenue- Client Solutions Group' to reach $12.24 billion, a change of +2.3% year-over-year [5]. - 'Net Revenue- Infrastructure Solutions Group' is expected to be $10.38 billion, reflecting a +12.5% change from the previous year [5]. - 'Net Revenue- Other businesses' is estimated at $497.04 million, indicating a significant decline of -52.6% year-over-year [5]. Segment Analysis - 'Net Revenue- Client Solutions Group- Consumer' is projected at $1.61 billion, suggesting an -11.1% change year-over-year [6]. - 'Net Revenue- Infrastructure Solutions Group- Storage' is expected to reach $3.93 billion, indicating a +4.4% change [6]. - 'Net Revenue- Client Solutions Group- Commercial' is forecasted at $10.63 billion, reflecting a +4.6% change [7]. - 'Net Revenue- Infrastructure Solutions Group- Servers and networking' is anticipated to be $6.45 billion, showing an +18% change [7]. Operating Income Estimates - 'Operating Income- Client Solutions Group' is estimated at $685.69 million, down from $732 million year-over-year [8]. - 'Operating Income- Infrastructure Solutions Group' is projected to reach $1.13 billion, up from $736 million in the previous year [8]. Stock Performance - Over the past month, Dell Technologies shares have increased by +18.6%, outperforming the Zacks S&P 500 composite's +10.7% change [8].

Core Insights - The article discusses the benefits of subscribing to Beyond the Wall Investing for access to high-quality equity research reports, potentially saving thousands of dollars annually [1] - It highlights a previous article on Dell Technologies Inc. (NYSE: DELL) that had a "Strong Buy" rating, indicating a positive outlook for the stock [1] Company Analysis - Dell Technologies Inc. is positioned for significant growth, as indicated by the previous analysis suggesting a strong investment opportunity [1] - The investing group Beyond the Wall Investing offers features such as a fundamentals-based portfolio and weekly insights from institutional investors, which can enhance investment decision-making [1] Investment Strategy - The article emphasizes the importance of technical signals for short-term trade ideas and provides community engagement through ticker feedback and chat [1] - There is a potential for initiating a long position in DELL stock or related derivatives within a short timeframe, indicating a proactive investment approach [1]

Wall Street expects a year-over-year increase in earnings on higher revenues when Dell Technologies (DELL) reports results for the quarter ended April 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 29. ...

Core Viewpoint - Dell Technologies (DELL) has experienced a significant share price increase of 36.6% over the past month, outperforming the broader Computer and Technology sector and the Micro Computers industry, driven by its expanding portfolio and strong partner network [1]. Group 1: Company Performance and Offerings - DELL's infrastructure solutions provide essential hardware and services that support cloud environments, transforming modern data centers with disaggregated infrastructure solutions that integrate storage, cyber resilience, software, and automation [2]. - The company addresses the evolving demands of on-premises, cloud, and edge environments, enabling organizations to manage and secure workloads efficiently with advanced storage systems like Power Protect Data Domain and PowerScale, enhanced by AI-driven ransomware detection [3]. - DELL's automated Private Cloud and NativeEdge offerings streamline deployment and management, ensuring modern data centers are agile, secure, and ready for future challenges [4]. Group 2: AI and Market Demand - DELL is benefiting from strong demand for AI servers, with a notable increase of $1.7 billion in orders for AI-optimized servers in the fourth quarter of fiscal 2025, shipping $2.1 billion worth of AI servers and maintaining a healthy backlog of $4.1 billion [8]. - The company has made significant upgrades to its AI Factory, introducing energy-efficient infrastructure and advanced cooling solutions to accelerate enterprise AI deployments across various environments [7]. Group 3: Partnerships and Collaborations - DELL's expanding partner base includes major companies like NVIDIA, Microsoft, and Meta Platforms, enhancing its AI capabilities and facilitating enterprise AI adoption through next-generation PowerEdge servers and integrated software solutions [10]. - Collaborations with Meta Platforms and Advanced Micro Devices aim to simplify the deployment of AI solutions and enhance telecom network monitoring and management [11]. Group 4: Financial Outlook - For the first quarter of fiscal 2026, DELL expects revenues between $22.5 billion and $23.5 billion, indicating a year-over-year growth of approximately 3% [12]. - Non-GAAP earnings are projected at $1.65 per share, reflecting a 25% growth at the midpoint, with a Zacks Consensus Estimate of $1.48 per share, indicating a year-over-year growth of 42.12% [13]. Group 5: Valuation and Market Position - DELL shares are considered undervalued, trading at a forward 12-month P/E of 0.77X compared to the sector's 6.14X, suggesting a significant discount [14]. - Despite the robust portfolio and expanding partner base, challenges such as a slower recovery in the broader PC market and cautious spending by enterprises may impact profitability [17].

Core Viewpoint - Dell Technologies is expected to report earnings on May 29, with estimates of $1.67 per share and $23.15 billion in revenue, indicating strong financial performance and potential volatility around the earnings report [1]. Group 1: Earnings and Revenue - The projected earnings per share for Dell Technologies is $1.67, with anticipated revenue of $23.15 billion [1]. - Dell Technologies has demonstrated impressive long-term earnings per share growth, reflecting a solid financial foundation [1]. - The company has also shown significant revenue growth, which is a positive indicator for investors [1]. Group 2: Market Volatility and Options Trading - Earnings reports can lead to abrupt volatility in stock prices, which can create opportunities for stock options traders [1]. - Dell Technologies has options available that expire on May 30, which may attract options traders looking to capitalize on potential price movements [1]. Group 3: Dividend Information - Dell Technologies currently has a dividend yield of 1.84%, which may appeal to dividend-focused investors [2]. - The company has a documented dividend history that investors can review for insights into its dividend-paying consistency [2].