From Yahoo Finance: 2025-06-18 11:51:00

Dell Technologies, known for PCs and enterprise solutions, reported $23.4 billion in revenue in Q1 of fiscal 2026, with EPS up 17%. The company’s AI-optimized servers are in high demand, driving growth. Despite strong performance, Dell’s stock remains undervalued with a P/E ratio of 13.3x and P/S ratio of 0.83x.

Dell’s EPS has grown at a rate of 10% annually since fiscal 2020, with forecasts predicting a 15% increase in adjusted EPS for fiscal year 2026. Analysts expect continued growth in FY27. Wall Street remains bullish, with an average price target of $136.53, representing an 18% upside potential.

The company is experiencing a surge in demand for AI-optimized server infrastructure, with $12.1 billion in orders booked in Q1. Dell’s sales pipeline is expanding across various sectors, driving future revenue. Investments in AI products, like AI PCs and data center infrastructure, aim to capture higher demand and expand its AI ecosystem.

Dell’s storage revenue grew 6% in Q1, led by products like PowerStore. The company’s traditional servers are seeing a refresh cycle, driving double-digit revenue growth. Dell’s focus on data protection is also yielding robust growth. With strong financial performance and market share gains, Dell is positioned for solid growth.

Despite strong earnings growth and a multibillion-dollar AI server backlog, Dell stock remains undervalued. With projections of up to 34% upside potential, Dell’s focus on high-growth markets like AI and storage make it an attractive investment. The company’s innovation and financial performance suggest continued growth ahead.

Read more: Is Dell Stock Undervalued? Wall Street Sees 34% Upside Potential