TLDR
- Dell’s AI-optimized server revenue hit $16.1 billion in Q1, up 757% year-over-year
- Total Q1 revenue came in at a record $43.84 billion, up 87.5% year-over-year
- EPS of $4.86 crushed the $2.96 analyst estimate by $1.90
- DELL stock is up more than 250% over the past 12 months, trading around $410
- Insiders have sold over $1.49 billion worth of stock in the last three months
Dell Technologies (DELL) has had a remarkable run. The stock is up more than 250% over the past 12 months, while the S&P 500 gained around 25% in the same period. Shares opened at $410.00 on Friday, off 2.2% on the day, with a 12-month range of $110.22 to $469.47.
The transformation from PC maker to AI infrastructure powerhouse has been years in the making. The pivot accelerated after Dell acquired EMC for roughly $67 billion about a decade ago, which gave the company a foothold in data storage and cloud computing — both now central to AI infrastructure.
Q1 results, reported May 28th, came in well above expectations. EPS of $4.86 beat the consensus estimate of $2.96 by $1.90. Total revenue of $43.84 billion topped the $35.74 billion estimate and was up 87.5% from the same period a year ago.
The standout number was AI server revenue. At $16.1 billion for the quarter, that figure was up 757% year-over-year. It shows just how fast enterprise demand for AI-ready hardware has shifted in Dell’s favour.
Dell won a $1.44 billion Microsoft license deal tied to the U.S. Air Force, which adds another layer of momentum in the public sector. That kind of contract reinforces demand beyond just commercial enterprise customers.
Analyst Targets Jump After Blowout Quarter
Wall Street moved quickly after the earnings beat. Daiwa raised its target from $170 to $465 with an outperform rating. Citic Securities went to $505 with a buy. Morgan Stanley upgraded DELL from underweight all the way to buy. Truist moved its target to $360 but kept a hold rating.
The consensus across 33 analysts sits at a “Moderate Buy” with an average price target of $475.76. One analyst has a Strong Buy, 21 have Buy ratings, 10 have Hold, and one has a Sell.
For FY2027, Dell has guided EPS at $17.90, and Q2 2027 guidance stands at $4.80 EPS. Sell-side consensus for the full fiscal year sits at $17.60 EPS.
Insider Selling Raises Some Eyebrows
Not everyone is holding on. Insiders have sold $1.49 billion worth of stock over the past three months. General Counsel Richard Rothberg sold 20,000 shares on June 15th at $410.00, reducing his stake by 12.31%. Director Spv-2 L.P. Sl sold 34,257 shares on June 12th at $403.12, a 27.17% reduction in ownership.
Institutional ownership remains high at 76.37%. Titan Investment Management LLC picked up 25,713 shares in Q4, valued at about $3.24 million, making DELL its 10th largest position.
Dell also declared a quarterly dividend of $0.63 per share, payable July 31st to stockholders of record as of July 21st. The annualized dividend of $2.52 represents a yield of 0.6% and a payout ratio of 20.02%.
The 50-day moving average sits at $283.50, and the 200-day moving average is at $187.06.
🚨 Our JUNE Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for June, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
