SuperworthDell Technologies DELL
- Market cap
- $290.2B
- PE
- 26.5×
- 7y median 18.2×
- Forward PE
- n/m
- not a meaningful number
- Price to sales
- 1.9×
- EV/EBIT
- 22.0×
- Revenue, 12 months
- $151.2B
- +49% on a year ago
- Net margin
- 7.5%
- Free cash flow yield
- 2.9%
A Superworth story
The AI server boom is real. The question is who pays for it
Dell's sales are up by half and its profit has more than doubled. Almost a quarter has come off the price since mid-September, while investors doubt the borrowed money behind AI data centers.
A company that stood still is growing by half
For four years Dell's sales rose and fell without lasting growth. Then data centers began filling with AI servers, racks built around NVIDIA's chips. Dell, still run by its founder Michael Dell, builds them. A year of sales is now 151 billion dollars, up by half. In September Dell raised its forecast for this year to 192 billion.
The fall took out the froth, not the profit
From its January low the price rose more than fivefold to a peak in mid-September. It has since fallen 23%, most of that in the past month. The slide sharpened this week as investors sold AI stocks, worried that companies borrowing heavily to build data centers can't keep spending as bond yields climb. Dell's results and forecast have not changed, so what came off was the price paid for each dollar of profit.
The orders run ahead of the sales
The growth is AI servers. In the July quarter AI customers ordered 60.9 billion dollars of them, more than all of Dell's sales that quarter, and the backlog of orders not yet shipped reached 95 billion. Dell expects AI servers to make up about two fifths of this year's sales.
It keeps less of each sale, but sells far more
An AI server is mostly other companies' chips, so Dell keeps less of each sale after paying for parts. Its gross margin sits near the bottom of its ten-year range. But sales grew by half in a year while running costs rose far more slowly. So over the past year Dell kept 9.4 cents of each dollar as operating profit, its best in ten years.
Most of the quarter's cash went out as loans to buyers
Free cash, what is left after running and investing in the business, was under a billion dollars in the July quarter, less than a quarter of profit. Dell lent 6.7 billion to customers to buy its servers, AI clouds like CoreWeave and Nscale among them. A bull sees demand. A skeptic sees heavily borrowed buyers: CoreWeave's bonds now yield above 15%. If they can't pay, Dell is owed the money.
A little under its peers, dear against its own past
Analysts expect Dell's adjusted profit per share, which leaves out some costs, to rise by about half over the next twelve months. On that, the stock costs about 16 times, a little under its peers at about 17. Against its own past it is dear: that multiple and the price against sales sit above nine in ten days of the last ten years. The line before late September is rebuilt with hindsight.
November 24 tests whether the buyers keep paying
Dell's forecast for the year implies about 13.60 dollars of adjusted profit per share in the second half. Analysts already expect 13.98, above the company's own number, and the few who look further out disagree widely. If AI customers keep ordering as borrowing gets dearer, the earnings behind today's price arrive. If they slow, the forecasts fall with them.
What has happened lately
- Nikkei Asia, AI stocks slide as debt fears grip Wall StreetInvestors worried that debt-laden AI infrastructure firms won't turn a profit in time to repay. Bonds of CoreWeave, an AI cloud that buys Dell servers, sold off until they yielded above 15%.
- AP (via BNN Bloomberg), U.S. markets are weighed down by an extended sell-off in the tech sectorChipmakers led a tech selloff on worries the AI buildout can't last and that heavily borrowed AI companies can't keep borrowing as bond yields hit multiyear highs.
- Reuters (via BNN Bloomberg), Dell shares gain after strong AI server demand boosts annual forecastShares rose nearly 10% premarket as Dell raised its year to $192B of revenue and $25.50 of adjusted EPS. Customers include AI clouds Nscale and CoreWeave, which run NVIDIA-chip servers.
- Dell Technologies (SEC filing), Dell Technologies delivers second quarter fiscal 2027 financial resultsRevenue $47.0B, up 58%. AI orders a record $60.9B, backlog $95B. AI server guide raised to $74B for the year. Free cash flow $986M, or $8.1B adjusted, adding back $6.7B of customer financing and $0.5B of leased equipment.
Headlines link to the original source.
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Charts
Financials
| Income statement | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $22.3B−10% | $22.3B−11% | $22.2B+6% | $25B+9% | $24.4B+10% | $23.9B+7% | $23.4B+5% | $29.8B+19% | $27B+11% | $33.4B+40% | $43.8B+88% | $47B+58% | |
| Cost of revenue | $17.1B−10% | $16.9B−12% | $17.4B+10% | $19.7B+12% | $19B+12% | $18.3B+8% | $18.4B+6% | $24.3B+24% | $21.4B+13% | $26.6B+46% | $36.1B+96% | $37.1B+53% |
| Gross profit | $5.2B−9% | $5.4B−7% | $4.9B−5% | $5.4B−1% | $5.4B+3% | $5.7B+6% | $4.9B+2% | $5.4B+2% | $5.6B+4% | $6.7B+19% | $7.8B+58% | $9.8B+81% |
| R&D | $692M+2% | $716M−10% | $763M+11% | $780M+11% | $745M+8% | $773M+8% | $808M+6% | $785M+1% | $752M+1% | $797M+3% | $983M+22% | $1.1B+41% |
| SG&A | $3B−9% | $3.1B−18% | $3.1B−4% | $3.2B−9% | $2.9B−3% | $2.7B−12% | $3B−5% | $2.9B−9% | $2.7B−6% | $2.8B+4% | $3.1B+6% | $3.3B+16% |
| $1.5B−13% | $1.5B+30% | $965M−15% | $1.4B+17% | $1.7B+12% | $2.2B+40% | $1.2B+21% | $1.8B+27% | $2.1B+23% | $3.1B+43% | $3.7B+214% | $5.4B+204% | |
| Interest expense | $371M+36% | $373M−4% | $343M−15% | $387M+10% | $321M−14% | $343M−8% | $354M+3% | $399M+3% | $396M+23% | $411M+20% | $391M+11% | $400M+0% |
| Pre-tax income | $1.2B+172% | $1.3B+46% | $592M−23% | $1B+40% | $1.4B+17% | $2B+47% | $1.1B+83% | $1.4B+39% | $1.9B+34% | $2.8B+42% | $3.9B+265% | $5.1B+256% |
| $183M−14% | $136M−57% | −$400M | $157M−40% | $275M+50% | $440M+224% | $118M | $276M+76% | $393M+43% | $540M+23% | $510M+332% | $998M+262% | |
| Net income | $1.1B+329% | $1.2B+97% | $997M+57% | $887M+81% | $1.2B+12% | $1.5B+27% | $965M−3% | $1.2B+31% | $1.5B+32% | $2.3B+47% | $3.4B+256% | $4.1B+255% |
| $1.42+330% | $1.66+100% | $1.37+59% | $1.23+86% | $1.64+16% | $2.15+30% | $1.37+0% | $1.70+38% | $2.28+39% | $3.38+57% | $5.24+283% | $6.34+273% | |
| 740M−0% | 730M−1% | 727M−1% | 724M−2% | 717M−3% | 714M−2% | 702M−3% | 686M−5% | 680M−5% | 669M−6% | 656M−7% | 652M−5% |
EPS, diluted: 3 periods, Q4 FY16 to Q4 FY21: quarter's net income to common over its shares, to the cent, the shares from counts implied by EPS, near the year's EPS less the nine months'. 3 periods, Q4 FY18 to Q4 FY26: quarter's net income to common over its shares, to the cent.
Diluted shares: 11 periods, Q3 FY16 to Q4 FY19: not printed by the filing, worked out from its own lines. 5 periods, Q4 FY22 to Q4 FY26: share-days: the 12-month average less the 9-month, weighted by days.
From each company's 10-Q and 10-K filings, the newest version of each figure. Quarters are as filed (a fourth quarter is the year less its first nine months), fiscal years as the 10-K prints them, restated where a later 10-K restated them, and balance sheet lines as of the period's end. A quarter whose 10-Q isn't filed yet is from the company's results release. Growth is on the same period a year earlier. A dash is a period with no figure for the line: the filing doesn't print it, or it hasn't been read yet.
Estimates
Next earnings report: .
| Quarter | Revenue | Range | EPS | Range | Analysts |
|---|---|---|---|---|---|
| Q3 FY27 | $49.2B | $47.7B to $56.8B | $6.56 | $6.41 to $7.30 | 16 |
| Q4 FY27 | $53.5B | $50B to $68.1B | $7.43 | $6.97 to $9.49 | 6 |
| Q1 FY28 | $54.7B | $52.8B to $61.2B | $6.85 | $6.55 to $7.92 | 4 |
| Q2 FY28 | $56.7B | $54.8B to $63.5B | $7.44 | $7.11 to $8.60 | 2 |
| Q3 FY28 | $59B | $57B to $66.1B | $8.07 | $7.72 to $9.33 | 2 |
| Q4 FY28 | $62.7B | $60.6B to $70.2B | $8.85 | $8.46 to $10.23 | 4 |
| Q1 FY29 | $56.8B | $54.9B to $63.6B | $8.05 | $7.69 to $9.30 | 3 |
| Q2 FY29 | $58.9B | $56.9B to $66B | $8.61 | $8.23 to $9.95 | 4 |
Peers
Companies in Computer Hardware nearest Dell Technologies' size, closest first.
| Company | Market cap | PE | Its 10y median PE | Fwd PE | P/S | Revenue growth | Net margin |
|---|---|---|---|---|---|---|---|
| DELLDell Technologies | $290.2B | 26.5× | 18.2× | n/m | 1.9× | +49% | 7.5% |
| ANETArista Networks | $217.4B | 54.4× | 43.8× | 36.9× | 20.6× | +33% | 38.4% |
| SNDKSandisk | $181.3B | 17.0× | 47.1× | 5.8× | 9.0× | +175% | 56.5% |
| STXSeagate Technology | $142.9B | 45.4× | 16.1× | 16.8× | 11.7× | +34% | 26.1% |
| WDCWestern Digital | $123.9B | 13.3× | 20.3× | 15.5× | 8.6× | +43% | 69.2% |
| HPEHewlett Packard Enterprise | $75.3B | 29.5× | 18.6× | 12.2× | 1.8× | +27% | 6.4% |
| NTAPNetApp | $42.3B | 30.3× | 21.0× | 21.7× | 5.7× | +12% | 19.2% |
| PEverpure | $41.1B | 169× | 172× | 37.9× | 9.6× | +27% | 5.9% |
| HPQHP | $30.3B | 12.8× | 9.7× | 11.2× | 0.5× | +8% | 4.1% |
| Peer median | $99.6B | 29.9× | 20.6× | 16.2× | 8.8× | +30% | 22.6% |
Investors who own it
Investors we follow who held Dell Technologies at the end of Jun 30, 2026, from their 13F filings.
- Lee AinslieMaverick Capital0.0% of portfolionew
More on Dell Technologies
Each number over time
- PE ratio
- Price to sales ratio
- EV/EBIT
- Price to free cash flow
- Price to book ratio
- Dividend yield
- Market cap
- Revenue
- EPS
- Free cash flow
- Profit margin
- Shares outstanding
Where it ranks
- #2of 16Computer hardware stocks with the fastest earnings growth
- #3of 24Computer hardware stocks with the fastest revenue growth
- #9of 24Computer hardware stocks with the highest profit margins
- #10of 18Computer hardware stocks with the lowest EV/EBIT
Its groups
About
- Chief executive
- Michael Dell, since 2007FounderFounded Dell in 1984, CEO again since 2007, also chair. Source
- Industry
- Computer Hardware
- Sector
- Technology
Valuation data, not investment advice. Prices as of .