Dell Technologies Inc. (NYSE:DELL) is one of the best affordable tech stocks to buy right now. On February 9, the Piper Sandler analyst team, led by James Fish, maintained its Overweight rating on Dell Technologies Inc. (NYSE:DELL) but flagged a cautious outlook ahead of the company’s earnings announcement. Dell Technologies (DELL): Mixed Outlook Amid Strategic AI Partnerships The analysts described Dell’s earnings setup for calendar year 2026 as “concerning to mixed.” They said that Dell has been perfor ...

Global Research ab 28 January 2026 Positivo Memory cost pressure is sector-wide but manageable, diversification cushions margins; Feedback from LAIC 2026 We hosted Positivo Tecnologia at the LAIC Conference and discussed the sharp increase in memory (RAM/SSD) costs, the challenges of passing prices through across retail, corporate and government channels, and how the company's increasingly diversified mix—services, servers and recurring solutions—helps absorb margin pressure. The conversation also covered e ...

Core Viewpoint - Dell Technologies Inc. is highlighted as a stock to watch, with expectations that it will perform well despite potential challenges related to semiconductor prices [1]. Group 1: Company Overview - Dell Technologies Inc. offers a range of products including storage systems, servers, networking gear, consulting services, laptops, desktops, workstations, and accessories [2]. Group 2: Market Sentiment - There is skepticism in the market regarding Dell's ability to manage rising raw material costs, particularly semiconductors, but there is confidence in the company's leadership and sourcing capabilities [1]. - The company is expected to continue performing strongly in the data center and enterprise sectors, suggesting a positive outlook for its stock ahead of the upcoming quarterly report [1].

Core Insights - CDW Corporation reported third-quarter 2025 non-GAAP earnings per share (EPS) of $2.71, exceeding the Zacks Consensus Estimate of $2.53, with a year-over-year increase of 3% [1][8] - Revenues rose 4% year over year to $5.74 billion, with constant currency sales growth of 3.8%, driven by demand across various product categories despite a slowdown in data storage and servers [2][8] Financial Performance - The Corporate segment net sales were $2.25 billion, up 4.4% year over year, while the Small Business segment saw a 14.2% increase to $434 million [4] - The Public segment's revenues reached $2.35 billion, a 0.6% increase, supported by growth in Government and Healthcare customers, although the Education sector declined by 8.5% [4] - Gross profit increased by 4.6% year over year to $1.26 billion, with a slight rise in gross profit margin to 21.9% [6] - Non-GAAP operating income fell 0.6% year over year to $530.6 million, with the operating margin decreasing to 9.2% [6] Future Outlook - CDW reaffirmed its goal to exceed U.S. IT market growth by 200–300 basis points at constant currency [3][8] - A quarterly dividend of 63 cents was announced, reflecting a 1% year-over-year increase, to be paid on December 10, 2025 [3] Balance Sheet and Cash Flow - As of September 30, 2025, CDW had cash and cash equivalents of $452.9 million, down from $946.7 million a year ago, with long-term debt increasing to $5.62 billion [9] - Cash flow from operating activities for the nine months ending September 30, 2025, was $771.4 million, compared to $932 million in the previous year [9]

Core Viewpoint - Dell Technologies Inc. is poised to report strong fiscal third-quarter earnings, with expectations of significant year-over-year profit growth and continued stock performance above market averages [1][2][4]. Financial Performance - Analysts anticipate Dell will report a profit of $2.25 per share for the upcoming quarter, reflecting a 17.2% increase from $1.92 per share in the same quarter last year [2]. - For the full fiscal year, Dell's expected EPS is $8.66, marking a 15.8% increase from $7.48 in fiscal 2025, with projections of $10.44 EPS in fiscal 2027, representing a 20.6% year-over-year growth [3]. Stock Performance - Dell's stock has outperformed the S&P 500 Index, which gained 18.4% over the past 52 weeks, with Dell shares rising 32.4% during the same period [4]. - The stock also surpassed the Technology Select Sector SPDR Fund's 29.8% gains in the same timeframe [4]. Product Innovation - Dell's recent announcement of the PowerEdge XR8720t server is expected to transform the tech landscape by efficiently managing telecom and edge workloads, leading to a significant share price increase of over 9% ahead of its global release in Q1 2026 [5]. Analyst Ratings - The consensus among analysts is bullish, with a "Strong Buy" rating for Dell stock. Out of 22 analysts, 15 recommend a "Strong Buy," 2 suggest a "Moderate Buy," and 5 give a "Hold" rating [7]. - The average analyst price target for Dell is $164.95, indicating a potential upside of 1.7% from current levels [7].

Core Viewpoint - CDW Corporation reported strong first-quarter 2025 results, with non-GAAP EPS of $2.15, exceeding estimates and showing a 12% year-over-year increase [1][2] Financial Performance - Revenues grew 6.7% year over year to $5.199 billion, driven by strong demand for notebooks, mobile devices, desktops, software, and services, despite declines in some hardware categories [2] - Quarterly revenues surpassed the consensus estimate of $4.89 billion [2] - Gross profit increased 5.5% year over year to $1.122 billion, while gross profit margin slightly decreased from 21.8% to 21.6% due to a higher mix of lower-margin products [6] - Non-GAAP operating income rose 10% year over year to $444 million, with the non-GAAP operating margin increasing to 8.5% from 8.3% [6] Segment Performance - Corporate segment net sales were $2.236 billion, up 6.3% year over year [4] - Small Business segment net sales increased 7.9% year over year to $405 million [4] - Public segment revenues reached $1.878 billion, representing a 10.6% growth, driven by significant increases in Healthcare (19.5%) and Education (11.1%) customer sales [5] - Other operations (Canadian and U.K.) saw net sales rise 9.5% to $680 million [5] Expenses and Cash Flow - Selling and administrative expenses rose 3.5% year over year to $761 million, influenced by lower performance-based compensation and transformation-related costs [8] - Cash flow from operating activities for the quarter was $287.2 million, down from $440 million in the previous year [9] Dividend Announcement - The company announced a quarterly dividend of 62.5 cents, payable on June 10, 2025, to shareholders on record as of May 26 [3] Stock Performance - Following the results, CDW's shares increased by 2% in pre-market trading on May 7, although shares have declined 25.6% over the past year compared to the industry growth of 4.2% [4]

Financial Data and Key Metrics Changes - Consolidated net sales for Q1 2025 were $700 million, representing a 10.9% increase compared to Q1 2024 [6] - Gross profit increased by nearly 8% to $127.3 million, while gross margins slightly decreased to 18.2%, down 50 basis points year over year [6][8] - Operating income for Q1 was $14.5 million, a 7.9% increase year over year, with operating income as a percentage of sales remaining flat at 2.1% [7][8] - Net income was $13.5 million, up 2.5% from $13.2 million in the prior year, with diluted earnings per share increasing by 2% to $0.51 [8][14] - Adjusted diluted earnings per share rose by 20% to $0.60 [8][14] Business Line Data and Key Metrics Changes - Net sales for notebooks and desktops increased by 21% year over year, driven by device refresh initiatives [9] - Advanced Technologies and Integrated Solutions revenue grew by 7%, supported by software and server storage solutions [9] - Business Solutions segment net sales were $258.4 million, a 1% increase, with gross profit rising by 8.4% to $65.4 million [10] - Public Sector Solutions net sales increased by 4.7% to $144.6 million, with gross profit up 30.9% [11] - Enterprise Solutions segment net sales grew by 5.4% to $298 million, although gross profit decreased by 1% [12] Market Data and Key Metrics Changes - Financial Services net sales increased by 32% and gross profit by 31% year over year [20] - Healthcare segment net sales grew by 13% and gross profit by 10% year over year [20] - The backlog at the end of Q1 was at its highest level in nearly two years, indicating strong future demand [23] Company Strategy and Development Direction - The company is focused on integrated IT solutions and customer service, aiming to drive internal efficiencies and reduce costs [6][19] - There is a strong emphasis on AI technology and its implementation, with investments in frameworks and advisory capabilities to support customer needs [21][22] - The company anticipates outperforming the U.S. IT market growth by 200 basis points, aligning its strategy with shifting customer technology consumption dynamics [24] Management Comments on Operating Environment and Future Outlook - Management noted a mixed customer response to economic conditions, with some accelerating purchases while others delayed due to cost concerns [29] - The company remains optimistic about future growth, driven by device refresh momentum and data center modernization initiatives [22][23] - There is caution regarding the economic backdrop, but management believes they can navigate through challenges and capitalize on opportunities [46][48] Other Important Information - The company declared a quarterly dividend of $0.15 per share, payable on May 30, 2025 [16] - A significant increase in share buyback activity was noted, with 697,000 shares repurchased at an average price of $64.22 [15] Q&A Session Summary Question: Customer purchasing patterns in Q1 - Management indicated a mixed response from customers, with some accelerating purchases due to cost containment concerns while others delayed spending [29][30] Question: Expected growth for the year - Management projected mid to high single-digit growth for the year, with a solid enterprise funnel but caution due to economic conditions [36][39] Question: Q1 performance progression - The quarter saw stronger performance in March compared to January and February, attributed to improved customer confidence and pre-tariff buying [43][44] Question: Q2 outlook amidst tariffs - Management acknowledged that tariffs are impacting customer decisions, but they are working to help customers navigate these challenges [46][48] Question: Acquisition plans - The company remains open to acquisitions, particularly tuck-in deals that expand capabilities or enter new markets, despite current market conditions [49][50]