| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 38 | 27.1x | 17.3x | Bottom tier | |
Growth | 92 | 49.0% | 7.1% | Top tier | |
Quality | 53 | 39.0% | 4.5% | Around median | |
Safety | 66 | 0.6x | 2.6x | Top tier | |
Capital Return | 72 | 0.49% | 0.06% | Top tier | |
Momentum | 93 | 257.0% | -1.6% | Top tier | |
Sentiment | 55 | 14 | 3 | Around median |
The floor: what the company is worth if growth stopped today
69% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Dell Technologies sells AI servers, traditional servers, networking equipment, and storage through its Infrastructure Solutions Group ISG, and commercial and consumer computers through its Client Solutions Group CSG, supporting these products with design, deployment, support, and financing services. In quarter 2 of fiscal year 2027 (ending 2026-07), ISG generated revenue of $31.8 billion, including $16.4 billion from AI servers, $10.5 billion from traditional servers and networking, and $4.9 billion from storage. CSG generated revenue of $15 billion, including $13.2 billion from commercial devices and $1.8 billion from consumer devices, making enterprise spending on infrastructure and devices central to Dell's business.
Total revenue in quarter 2 of fiscal year 2027 was approximately $47.0 billion, up 57.7% year over year, while net income reached $4.1 billion and diluted earnings per share were $6.34. Gross margin expanded to 20.9% from 18.3% in quarter 2 of fiscal year 2026 (ending 2025-08), and operating margin rose to 11.5% from 6.0%. This improvement is supported by the storage mix shifting toward Dell IP products, such as PowerStore, PowerScale, and ObjectScale, along with spreading operating expenses across a larger revenue base; however, management explained on the 2026-09-01 call that some favorable mix and margin conditions are not expected to persist with the same strength.
Converting demand into deliveries and cash is the most important financial test of this expansion: Dell ended quarter 2 of fiscal year 2027 with an AI server backlog of $95 billion, while operating cash flow for the period was $2.2 billion. Over the last 12 months through 2026-07-31, it recorded revenue of $151.2 billion, net income of $11.4 billion, operating cash flow of $12.2 billion, and free cash flow of $8.6 billion. On the balance sheet for quarter 2 of fiscal year 2027, debt totaled $42.9 billion against cash and investments of $24.4 billion, so working capital management remains important as the server business expands.
Q2 FY2027 (2026-07)
When: 2026-11-24
Revenue for quarter 3 of fiscal year 2027 at the $49 billion threshold
AI server revenue in quarter 3 of fiscal year 2027 at the $19 billion threshold
CSG operating margin in quarter 3 of fiscal year 2027 at the 6% threshold
The median analyst price target is $570, within a range of $289 to $735, reflecting expectations for growth and future performance. The industry-multiple valuation is $481, within a range of $325 to $771, based on next year's earnings and a median multiple of 22.7 across 18 companies, measuring Dell's valuation in line with its peers. The discounted cash flow model estimates a value of $249, within a range of $205 to $311 and at a discount rate of 11.5%, to measure expected cash generation, while the no-growth value is $131 if current after-tax operating profit remains constant forever at the same discount rate. Analyst targets and the industry-multiple valuation are relatively close and their ranges overlap, while the cash flow valuation is lower than both and the no-growth value is the lowest, illustrating how much the higher values depend on continued expansion and its conversion into cash. Analyst targets naturally tend toward optimism, while the cash flow model tends toward conservatism, so the differing results reflect differences in what each method measures and its assumptions.
Figures in the text are as of 2026-10-16; the live price is shown at the top of the page.
AI servers generated revenue of $16.4 billion in quarter 2 of fiscal year 2027 (ending 2026-07), within total revenue of $47.0 billion. In the same period, traditional server and networking revenue reached $10.5 billion, growing 122%, storage reached $4.9 billion, growing 26%, and CSG reached approximately $15 billion, growing 20%. PowerStore, PowerScale, and ObjectScale support storage expansion, while management links traditional server demand to data center upgrades, security requirements, and AI workloads.
Dell ended quarter 2 of fiscal year 2027 (ending 2026-07) with an AI server backlog of $95 billion, after recording orders of $60.9 billion during the period. This provides a business base that requires manufacturing, delivery, and deployment, and does not equal revenue recognized in the same period. On the 2026-09-01 call, management identified shortages in DRAM, NAND, and other components, and explained that customers are placing orders early to secure supply, making order execution timing central to monitoring.
Automated analysis for informational purposes only — not investment advice.
Last 12 months to 2026-07-31
Over the last 12 months through 2026-07-31, operating cash flow totaled $12.2 billion, equivalent to 107% of net income of $11.4 billion. Free cash flow totaled $8.6 billion against share repurchases of $8.5 billion, so repurchases absorbed most of the period's free cash flow. In quarter 2 of fiscal year 2027 (ending 2026-07), debt totaled $42.9 billion against cash and investments of $24.4 billion, making the balance between funding growth, repurchasing shares, and reducing debt important.
A news report on 2026-10-02 reported Dell's participation with JERA and RHAELM in a $15 billion AI data center project in Japan. This is the project's total value and does not specify the revenue Dell will receive or its recognition schedule. The participation aligns with the Dell AI Factory business, which had more than 6,500 customers according to the 2026-09-01 call, but measuring the project's financial impact requires specifying the scope of the company's supplies.
Management projected revenue of $49 billion at the midpoint for quarter 3 of fiscal year 2027, including $19 billion from AI servers, and adjusted diluted earnings per share of $6.50. It also guided for ISG growth of approximately 145% and CSG growth of approximately 15%, with a CSG operating margin of approximately 6%. The announcement expected on 2026-11-24 will test Dell's ability to convert demand into deliveries while maintaining profitability amid component shortages.