TLDR
- Dell reports Q2 earnings Tuesday after market close
- Wall Street expects EPS of $4.93 on revenue of $44.48 billion, up over 49% year on year
- EPS estimates have seen 21 upward revisions and zero downward revisions over the last three months
- DELL stock is up over 270% this year, versus a roughly 13% gain in the S&P 500
- Average analyst price target sits at $510.26 versus a current price of $456.25
Dell is set to report its second-quarter results on Tuesday after markets close, and expectations are running high.
Wall Street is looking for EPS of $4.93 on revenue of $44.48 billion. That would represent revenue growth of over 49% for the quarter.
The current stock price sits at $456.25, with the average analyst price target at $510.26, giving some room to the upside if results impress.
Over the past two years, Dell has beaten EPS estimates 88% of the time and revenue estimates 63% of the time. That track record will be on investors’ minds heading into Tuesday.
Last quarter, Dell posted revenues of $43.84 billion, up 87.5% year on year, beating both revenue and EPS estimates. Guidance for the following quarter also came in ahead of expectations.
Analyst sentiment heading into this print has been broadly positive. Over the last three months, EPS estimates have seen 21 upward revisions and zero downward revisions. Revenue estimates tell the same story, with 19 upward revisions and none to the downside.
What Analysts Are Saying
J.P. Morgan analyst Joseph Cardoso expects Dell to raise its full-year FY27 revenue guidance again, building on an already upgraded outlook that calls for 47% growth.
Wells Fargo analyst Aaron Rakers pointed to continued demand for server CPUs, driven by agentic AI use cases, as a key driver. He also flagged the ability to pass through component cost inflation and a 14th-generation installed base upgrade cycle as reasons to expect more upside in Dell’s server results and outlook.
AI infrastructure spending has been a major tailwind for Dell. As companies continue to pour money into data centers and AI buildouts, demand for Dell’s server and storage equipment has followed.
DELL stock has surged over 270% so far this year, a standout move compared to the roughly 13% gain in the broader S&P 500.
A Note of Caution
Not everyone is ready to pile in ahead of the print. Seeking Alpha’s Quant ratings and its analyst community have rated the stock a Hold, while Wall Street leans Buy.
Seeking Alpha analyst Oakoff Investments put it plainly: “I think the market has already priced in a lot of the upcoming fundamental growth. The odds for beating the upcoming Q2 2027 earnings look high, but it doesn’t mean the market will be willing to reward DELL with another leg higher.”
That is worth keeping in mind. Beating estimates is one thing. Getting rewarded for it in the current market is another.
Investors in the broader hardware and infrastructure space have been relatively steady heading into this earnings season, with the group up around 1.8% on average over the last month. Dell has outpaced that, rising 6.3% in the same period.
Peers HP and Everpure both reported recently. HP grew revenue 12.5% and beat estimates by 7.5%, but still traded down 3.5% after results. Everpure grew 37.7%, beat by 7.7%, and also fell 10% post-earnings.
Dell reports Tuesday after the bell.
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