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]

Core Insights - The global PC market is experiencing growth for the sixth consecutive quarter, with a year-on-year increase of 4.8% in Q1 2025 [1] - Lenovo leads the market with a remarkable year-on-year growth rate of 9.6%, solidifying its position as the top PC supplier globally [1] Group 1: Lenovo's Performance - In Q1 2025, Lenovo shipped 15.275 million units, capturing a market share of 25.9%, up from 24.8% in the same period last year [2] - Lenovo's performance in the U.S. market is also strong, with shipments reaching 314.7 thousand units, a year-on-year increase of 20.7%, and market share rising from 17.9% to 19.2% [2] Group 2: Market Dynamics - The growth in the global PC market is primarily driven by significant increases in shipments in the U.S. and Japan, with the U.S. seeing a 12.6% rise and Japan experiencing a 15.6% increase [4] - The EMEA market shows a growing interest in AI PCs, which now account for approximately 15% of the market, indicating a willingness among buyers to invest in higher-priced future-proof devices [4] - The APAC region's shipment volume remained flat, with a 4% decline in demand from the Chinese market, while the Indian market shows positive signals with expected recovery in commercial demand [4] Group 3: Future Outlook - Gartner forecasts continued growth in the global PC market for 2025 and 2026, driven by Windows 11 upgrades and AI PC demand [4] - Despite potential short-term impacts from tariff policies, the commercial PC market's upgrade needs and consumer replacement cycles are expected to provide sustained momentum for the market [4]

Core Insights - The global PC market experienced a 4.9% year-over-year increase in first-quarter shipments, totaling 63.2 million units, marking six consecutive quarters of growth [1] - However, the growth is largely attributed to pre-tariff stockpiling by vendors and buyers, raising concerns about future demand due to new U.S. tariffs [2][3] Market Dynamics - The first-quarter performance was artificially inflated due to strategic decisions by supply chain players to accelerate shipments ahead of tariff impacts [3] - Despite the pre-tariff boost, underlying demand for commercial PCs remains strong, driven by the upcoming end of Windows 10 support and interest in AI-enabled devices [4][5] Vendor Performance - Lenovo maintained its market leadership with 15.2 million shipments and a 24.1% market share, an increase from 22.8% year-over-year [6] - HP and Dell followed with 12.8 million and 9.6 million shipments, respectively, while Apple saw a significant 14.1% year-over-year growth, reaching 5.5 million units [6][7] Future Outlook - The introduction of new U.S. tariffs has created uncertainty, with potential strategies for vendors including relocating manufacturing and adjusting inventories [8] - Cost increases from tariffs are expected to impact consumers and enterprise buyers, potentially delaying purchases and affecting demand levels [9] - Overall, while the PC market showed strong early traction in 2025, the outlook remains unstable due to inflation and macroeconomic risks [10]