TLDR
- DELL stock is up 10% after reporting adjusted EPS of $7.04, crushing the $4.91 analyst estimate
- Revenue hit $46.97 billion, beating expectations of $44.92 billion, up nearly 60% year-over-year
- Q3 guidance of $49 billion in sales and $6.50 EPS came in well above Wall Street forecasts
- Dell recorded $60.9 billion in AI server orders in the quarter, pushing its total backlog to $95 billion
- JPMorgan raised its price target to $635 and Citi lifted theirs to $600, both maintaining Buy ratings
Dell Technologies (DELL) stock jumped 10% at Wednesday’s market open after the company posted a blowout quarter driven by surging AI server demand.
Adjusted EPS came in at $7.04, more than tripling year-over-year and well above the $4.91 consensus estimate. Revenue reached $46.97 billion, up nearly 60% from a year ago and ahead of the $44.92 billion Wall Street had expected.
The stock has more than tripled in value since the start of the year, and was up nearly 240% year-to-date heading into Wednesday’s session.
AI Orders Drive the Beat
Dell’s AI server business was the clear engine here. The company booked $60.9 billion in AI server orders during the quarter, pushing its total backlog to $95 billion. That is the kind of number that tends to quiet any doubters.
JPMorgan analyst Joseph Cardoso raised his price target on DELL from $565 to $635, keeping his Buy rating. He called it “another robust quarter” and said “the AI momentum spoke for itself.” Cardoso also pointed to a more durable IT infrastructure refresh cycle and stronger-than-expected PC demand.
Dell’s Q3 outlook called for $49 billion in revenue and adjusted EPS of $6.50. Wall Street had penciled in $41.42 billion and $4.49 per share. The full-year sales outlook was lifted to $192 billion from $167 billion, with adjusted EPS guidance rising to $25.50 from $17.90.
Analysts Raise Targets Across the Board
Citi’s Asiya Merchant raised her price target to $600 from $515, keeping a Buy rating. She called the quarter a “clear beat” and said she expects expanding enterprise AI adoption to help sustain Dell’s momentum.
TD Cowen’s Krish Sankar raised his target to $500 from $450 but kept a Hold rating. He called the results another “stunning beat and raise” and said AI server demand is now projected to reach $74 billion in FY27. He also noted that traditional servers are seeing upgrade demand and early adoption of agentic AI CPUs.
Morgan Stanley lifted its target to $499 from $434 but flagged some concern around the sustainability of demand, given Dell’s recent price increases.
Overall, Dell carries a Moderate Buy consensus from 20 Wall Street analysts, based on 13 Buys and seven Holds over the last three months. The average 12-month price target of $581.78 implies about 28% upside from current levels.
Dell’s total backlog now sits at $95 billion, with $60.9 billion in AI server orders booked in the latest quarter alone.
