| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 30 | 33.0x | 17.8x | Bottom tier | |
Growth | 95 | 49.0% | 7.1% | Top tier | |
Quality | 53 | 31.0% | 4.5% | Around median | |
Safety | 63 | 1.1x | 2.6x | Around median | |
Capital Return | 28 | 0.41% | 2.12% | Bottom tier | |
Momentum | 99 | 272.3% | 2.9% | Top tier | |
Sentiment | 49 | 14 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, 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 technology infrastructure and computing devices to enterprises and consumers through two main groups. The Infrastructure Solutions Group ISG generates revenue from AI servers, traditional servers, networking, and storage, while the Client Solutions Group CSG includes commercial and consumer PCs; the company also benefits from design, deployment, support, and financing services related to these systems. In Q2 of fiscal year 2027, ISG accounted for approximately 68% of revenue, generating $31.8 billion, compared with $15.0 billion for CSG, making infrastructure the largest driver of the business.
In Q2 of fiscal year 2027, revenue rose 58% to $47.0 billion, and EDGAR data recorded gross profit of $9.8 billion, net income of $4.1 billion, and earnings per share of $6.34. On the non-GAAP basis used in the earnings call, gross profit reached $9.9 billion at a margin of 21.1%, and net income reached $4.6 billion, while diluted earnings per share rose 203% to $7.04. Non-GAAP operating income also reached $5.9 billion, or 12.6% of revenue, supported by volume growth, pricing discipline, and an improved storage mix.
ISG led growth, with revenue increasing 89% and operating income rising 225% to $4.8 billion, while its operating margin climbed to 15.0% from 8.8% a year earlier. Within the group, AI server revenue reached $16.4 billion, traditional server and networking revenue reached $10.5 billion, and storage revenue reached $4.9 billion. CSG revenue grew 20%, split between $13.2 billion from commercial operations and $1.8 billion from consumer operations, and it generated operating income of $1.1 billion and a margin of 7.6%.
The analyst consensus is “Buy,” with an average price target of $553.19 and a wide range between $289 and $735; the average is slightly above the 52-week range high of $538.4244, while the breadth of the targets reveals substantial disagreement over the sustainability of the AI server boom. This optimism is counterbalanced by a valuation cited in a September 1, 2026 report of 33.8 times earnings and 22.2 times enterprise value to earnings before interest, taxes, depreciation, and amortization, making continued demand growth and improving ISG margins essential to justifying the valuation.
Figures in the text are as of 2026-09-09; the live price is shown at the top of the page.
The largest driver is AI servers, which recorded revenue of $16.4 billion and orders of $60.9 billion in Q2 of fiscal year 2027. Their backlog reached $95 billion at the end of the quarter, after more than $130 billion in orders were recorded over the last 12 months. Based on this momentum, Dell expects AI server revenue to reach $74 billion in fiscal year 2027, three times its previous annual level.
No; traditional server and networking revenue rose 122% to $10.5 billion in Q2 of fiscal year 2027, driven by data-center upgrades and demand for processing capacity for intelligent-agent workloads. Storage also grew 26% to $4.9 billion, with Dell IP order growth continuing to outpace the market for six consecutive quarters. CSG revenue increased 20% to $15.0 billion, including $13.2 billion from commercial PCs and $1.8 billion from consumer PCs.
The company raised its full-year revenue outlook by $25 billion to $192 billion, equivalent to growth of approximately 70%. It expects non-GAAP diluted earnings per share of $25.50 and operating income growth of approximately 120%. For Q3 of fiscal year 2027, it is targeting a revenue midpoint of $49 billion and earnings per share of $6.50, including $19 billion in AI server revenue.
Automated analysis for informational purposes only — not investment advice.
ISG's operating margin rose to 15.0% in Q2 of fiscal year 2027, an increase of 620 basis points, while the group's operating income reached $4.8 billion. Management attributed the improvement to economies of scale, a higher Dell IP storage mix, and pricing discipline, while operating expenses as a percentage of revenue declined by 250 basis points to 8.5%. However, management said that not all quarterly benefits may continue at the same level and expects the CSG margin to moderate to approximately 6% in Q3 of fiscal year 2027.
Management explained during the September 1, 2026 call that demand exceeds supply capacity and that constraints include DRAM, NAND, certain CPUs, drives, optical components, and ABF substrates. This means that order volume alone does not guarantee the timing of delivery or revenue recognition, even after the fiscal year 2027 outlook was raised to $192 billion. Customers are also placing orders further in advance to secure access to components, while Dell is redirecting some supplies from PCs to the infrastructure business.
Dell generated operating cash flow of $2.2 billion and adjusted free cash flow of $8.1 billion in Q2 of fiscal year 2027. It returned $4.3 billion to shareholders, including the repurchase of 9.5 million shares and dividend payments of approximately $0.63 per share. It ended the quarter with $14.2 billion in cash and investments and a core leverage ratio of 0.8 times, giving it flexibility to fund growth and capital returns.
