ROUND ROCK, Texas, September 2, 2026, 19:07 (CDT)
- Dell Technologies Inc. NYSE:DELL ended the session at $492.20, rising 15.81%, with 36.4 million shares traded.
- Adjusted EPS forecast for fiscal 2027 increased by 42.5% to $25.50, surpassing the rise in shares.
- Orders for AI servers totaled $60.9 billion, with the backlog at the end of the quarter rising to $95 billion.
- On September 2, fifteen analyst targets had a median of $600, which is 21.9% higher than the closing price on Wednesday.
Dell Technologies Inc. NYSE:DELL shares surged 15.8% on Wednesday as its profit outlook climbed more rapidly than the stock itself. Shares ended the session at $492.20, having reached an intraday high of $497.99.
The discrepancy is significant. Dell boosted its fiscal 2027 adjusted earnings outlook by 42.5% to $25.50 per share. The company also raised the midpoint of its revenue forecast by 15.0% to $192 billion Dell earnings release.
The adjustment reduced the price-to-guidance ratio even as shares climbed. At Tuesday’s close of $425, the stock traded at 23.7 times the previous EPS forecast. By Wednesday’s close, it was at 19.3 times the updated target.
Trade volume was brisk, totaling 36.4 million shares—roughly 2.3 times higher than Tuesday’s total. The five-day chart displays the reversal following Tuesday’s $425 closing price Yahoo Finance.
The July quarter provided the earnings bridge. Revenue increased by 58% to $47.0 billion. Adjusted EPS stood at $7.04, surpassing the $4.91 Wall Street forecast referenced by Reuters Reuters report.
Fiscal 2027 guidance reset
Company guidance issued September 1, 2026. Percentages calculated from reported midpoints.
Surging AI-server demand triggered the rebound. Dell secured $60.9 billion in orders and reported $16.4 billion in revenue. The backlog closed at almost $95 billion. Chief Operating Officer Jeff Clarke said IT had moved from “cost centers to value drivers.”
The expansion extended beyond accelerators. Revenue from traditional servers and networking jumped 122%. Storage revenue climbed 26%, and client-solutions sales advanced 20% company results.
AI-server demand and conversion markers
Ratios calculated from company figures reported September 1, 2026.
Infrastructure profit was also boosted by scale. The operating margin in this segment rose to 15.0% from 8.8%. Operating income soared, climbing over threefold to $4.78 billion.
Other stocks showed smaller changes. Hewlett Packard Enterprise NYSE:HPE was up 1.4% early Wednesday. Super Micro Computer NASDAQ:SMCI advanced 2.2%, according to Reuters. JPMorgan analysts said, “The AI momentum spoke for itself.”
Following the report, analysts raised their price targets. On September 2, fifteen actions showed a range between $499 and $735. The median target of $600 suggests a potential upside of 21.9% from the previous close Benzinga analyst actions.
September 2 analyst target range
close$499
low$600
median$735
high
Fifteen named target actions compiled September 2, 2026; median calculated from the listed targets.
The cash situation is still complicated. Dell’s quarterly operating cash flow dropped 13% to $2.23 billion. Despite that, the company delivered a record $4.3 billion to shareholders via buybacks and dividends.
In the coming week, estimate revisions will face scrutiny over supply capabilities. Dell projects third-quarter revenue around $49 billion, with adjusted EPS forecast at $6.50. Revenue from AI servers is anticipated to total roughly $19 billion earnings-call transcript.
Risks: Component shortages may slow the conversion of backlog. A higher proportion of AI systems may weigh on gross margins. Operating cash flow could also be limited by working capital requirements.
Dell’s share price has increased, yet its guidance multiple is lower. Maintaining this balance depends on converting orders into revenue while keeping recent margin improvements intact.
Related articles: NYSE:DELL
