Dell Technologies set to report strong Q1 earnings, benefiting from AI demand.

From Nasdaq: 2025-05-26 12:50:00

Dell Technologies is set to report its first-quarter fiscal 2026 results on May 29. Revenues are expected to be between $22.5 billion and $23.5 billion, with non-GAAP earnings projected at $1.65 per share. The Zacks Consensus Estimate for revenues is $23.10 billion, with an expected quarterly earnings of $1.71 per share.

Dell Technologies’ earnings have consistently beaten estimates in the past four quarters. The company’s first-quarter results are expected to benefit from strong demand for AI-optimized servers. Dell anticipates 6% year-over-year revenue growth in the Infrastructure Solutions Group and Client Solutions Group. The Zacks Consensus Estimate for ISG revenues is $10.379 billion, with CSG revenues at $12.237 billion.

Despite a slower PC market recovery, Dell Technologies has seen growth through partnerships with companies like NVIDIA and Meta Platforms. The company has advanced its AI initiatives through collaborations with industry leaders. However, increasing competition in the AI data center market and trade tensions may impact profitability. Dell currently has a Zacks Rank #3 (Hold).

Dell Technologies shares are trading at a discount with a Value Score of B. The stock’s forward P/S ratio is significantly lower than the sector average. Dell has benefited from its expanding partner base, which includes major tech companies. Despite challenges in the market, Dell’s partnerships and portfolio strength are notable. Investors may consider waiting for a better entry point with a Zacks Rank #3.



Read more at Nasdaq: DELL Set to Report Q1 Earnings: Buy, Sell or Hold the Stock?