Dell set to announce Q4 earnings with strong AI demand but cautious market outlook

From Nasdaq: 2025-02-20 12:14:00

Dell Technologies (DELL) is set to announce its fourth-quarter fiscal 2025 results on Feb. 27, with expectations of $24-$25 billion in revenues and $2.50 per share earnings. The Zacks Consensus Estimate predicts a 10.48% revenue growth. Dell’s AI server demand and market share decline may impact its stock performance.

Dell’s AI server sales, totaling $2.9 billion in Q3 FY 2025, are expected to drive growth, with a backlog of $4.5 billion. The AI Factory partnership with NVIDIA, Meta Platforms, Microsoft, and Hugging Face has been successful. Dell aims for revenue growth of 3-4% and over 8% in earnings, returning over 80% of free cash flow to shareholders.

Investors should consider Dell’s strong AI demand but be cautious of PC market challenges and stretched valuation. Dell’s stock is trading below the 200-day moving average, indicating a bearish trend. With a Zacks Rank #5 (Strong Sell), it may be prudent to wait for the Q4 earnings results before making any investment decisions.



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