Dell expands cloud services, AI prospects strong, faces competition, stock trading at premium.

From Nasdaq: 2025-06-26 11:36:00

Dell Technologies is expanding its cloud services through its infrastructure solutions and rich partner base, with first quarter fiscal 2026 revenues increasing 12% year over year to $10.31 billion. Dell’s AI prospects remain strong, benefiting from demand for AI servers and enterprise deployments.

Facing stiff competition in the cloud market, Dell competes against Microsoft and Alphabet. Microsoft’s Cloud revenues reached $42.4 billion in Q3 fiscal 2025, with strong demand for Azure and AI services. Alphabet’s Google Cloud revenues increased 28.1% year over year in Q1 2025.

Dell’s shares have gained 4.9% year to date, outperforming the Computer & Technology sector. The company’s stock is trading at a premium with a forward 12-month Price/Sales of 0.77X. The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is $2.26 per share.

The consensus mark for Dell’s 2025 earnings is $9.43 per share, with a Zacks Rank #1 (Strong Buy). Dell’s expanding portfolio and strong AI prospects contribute to its positive outlook and growth potential in the cloud market.



Read more at Nasdaq: Will Dell’s ISG Segment Benefit From Cloud Infrastructure Expansion?