ROUND ROCK, Texas, August 31, 2026, 11:10 (EDT)
- Dell shares were at $460.64, rising 0.96%, as of 10:50 EDT.
- Options suggest a move of about 10% following Tuesday’s earnings report.
- Quarterly revenue is forecast by analysts to increase 52% to $45.19 billion.
- Dell aims for approximately $60 billion in fiscal-2027 AI server revenue.
Dell Technologies (NYSE: DELL) gained 0.96% to $460.64 as of 10:50 EDT. Market participants are anticipating an approximately 10% swing following Tuesday’s earnings report.
Dell earnings pressure map
Quarterly hurdle
| Metric | Estimate | Growth |
|---|---|---|
| Q2 revenue | $45.19B | ~+52% |
| Q2 adjusted EPS | $4.91 | ~+112% |
| Q1 revenue | $43.84B | +88% |
| Q1 adjusted EPS | $4.86 | $2.94 prior estimate |
Fiscal-2027 revenue mix test
$60B
$167B
AI servers equal about 36% of midpoint revenue, increasing exposure to accelerator costs and large orders.
Hardware peer snapshot
| Company | Price | Session | Market value | Trailing P/E |
|---|---|---|---|---|
| Dell | $460.64 | +0.96% | $302.2B | 36.7× |
| HPE | $52.33 | +0.04% | $74.9B | 48.0× |
| HP Inc. | $30.27 | -0.84% | $28.1B | 11.6× |
Event and analyst range
Low target · options downside · current · average target · high target.
What the market needs
A revenue beat is largely expected. The stronger signal would be higher full-year profit guidance with stable margins. Misses on AI-server mix, customer timing or component costs could trigger the full implied downside.
Catalyst: fiscal Q2 results, September 1, 2026, after the closing bell.
The anticipated move is nearly the same as Wall Street’s typical 12-month gain. Following a year-to-date increase of around 269%, this scenario offers minimal margin for average outcomes.
| Hardware snapshot | Dell | HPE | HP Inc. |
|---|---|---|---|
| Price near 10:50 EDT | $460.64 | $52.33 | $30.27 |
| Change in session | +0.96% | +0.04% | -0.84% |
| Market capitalization | $302.2 billion | $74.9 billion | $28.1 billion |
| Trailing price/earnings | 36.7x | 48.0x | 11.6x |
Dell will announce its fiscal second-quarter earnings following Tuesday’s market close. According to its investor calendar, the results call is set for September 1 at 3:30 p.m. CDT.
Visible Alpha projects revenue will reach $45.19 billion, an increase of roughly 52%. Adjusted earnings are estimated at $4.91 per share, more than twice last year’s figure (Investopedia).
| Earnings scoreboard | Value | Comparison |
|---|---|---|
| Fiscal Q1 revenue | $43.84 billion | Up 88% from a year earlier |
| Fiscal Q1 adjusted EPS | $4.86 | $2.94 previously expected |
| Fiscal Q2 revenue estimate | $45.19 billion | Roughly +52% |
| Fiscal Q2 adjusted EPS estimate | $4.91 | Approximately +112% |
| Fiscal-2027 revenue guide | $165-$169 billion | $167 billion at midpoint |
| Fiscal-2027 AI-server target | About $60 billion | 36% of midpoint revenue |
AI servers are at the core of the assessment. In May, Dell increased its yearly goal to approximately $60 billion. This amount makes up 36% of the company’s midpoint revenue projection.
Revenue for the first quarter surged 88% to $43.84 billion. Adjusted earnings came in at $4.86 per share, significantly beating the $2.94 forecast (Reuters).
| Post-earnings overview | Price | Change from $460.64 |
|---|---|---|
| Lowest analyst target | $360.00 | -21.8% |
| Downside from options | $414.58 | -10.0% |
| Latest price | $460.64 | — |
| Upside from options | $506.70 | +10.0% |
| Consensus analyst target | $510.48 | +10.8% |
| Highest analyst target | $700.00 | +52.0% |
The options span between roughly $415 and $507, with the top of the range just under the $510.48 average analyst target (MarketScreener).
Analysts hold an overall bullish outlook, though opinions are varied. Out of the group, 27 analysts maintain a Buy consensus. Price targets range from $360 to $700, highlighting ongoing uncertainty around AI-hardware margins.
Peer valuations send conflicting messages. Hewlett Packard Enterprise (NYSE: HPE) is valued at 48 times earnings, while HP Inc. (NYSE: HPQ) trades at close to 12 times earnings.
Guidance will be the key catalyst, rather than just the reported quarter. Investors require stronger profit projections to counteract hardware-mix pressures and already high expectations.
Risks: AI-server revenue comes with significant component expenses. Reliance on a small group of customers may result in fluctuating orders. Increases in memory and accelerator costs could limit gross margins.
Image credit: Dell Technologies. Sourced from Wikimedia Commons. Modified by cropping and resizing as permitted under CC BY-SA 4.0.
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