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1. Company Snapshot

1.a. Company Description

Dell Technologies Inc.designs, develops, manufactures, markets, sells, and supports information technology (IT) solutions, products, and services worldwide.The company operates through three segments: Infrastructure Solutions Group (ISG), Client Solutions Group (CSG), and VMware.


The ISG segment provides traditional and next-generation storage solutions; and rack, blade, tower, and hyperscale servers.This segment also offers networking products and services that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes; attached software and peripherals; and support and deployment, configuration, and extended warranty services.The CSG segment provides desktops, workstations, and notebooks; displays and projectors; attached and third-party software and peripherals, as well as support and deployment, configuration, and extended warranty services.


The VMware segment supports customers in the areas of hybrid and multi-cloud, modern applications, networking, security, and digital workspaces, helping customers to manage IT resource across private clouds and complex multi-cloud, multi-device environments.Dell Technologies Inc.also provides information security; and cloud software and infrastructure-as-a-service solutions that enable customers to migrate, run, and manage mission-critical applications in cloud-based IT environments.


The company was formerly known as Denali Holding Inc.and changed its name to Dell Technologies Inc.in August 2016.


Dell Technologies Inc.was founded in 1984 and is headquartered in Round Rock, Texas.

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1.b. Last Insights on DELL

Dell Technologies' recent performance was driven by strong Q3 results, featuring its largest earnings per share (EPS) beat in three quarters. The company raised its long-term revenue and profit growth forecasts, fueled by a surge in demand for artificial intelligence (AI) servers. Record third-quarter server revenue soared 37%. Dell's AI-server momentum and double-digit growth forecasts are expected to benefit its Q3 results. The company also raised its annual outlook for AI servers from $20B to $25B.

1.c. Company Highlights

2. Dell's Q3 FY2026 Earnings: A Strong Performance Driven by AI Server Demand

Dell Technologies reported a robust third quarter for fiscal year 2026, with record revenue and earnings per share. Total revenue reached $27 billion, up 11% year-over-year, with ISG (Infrastructure Solutions Group) and CSG (Client Solutions Group) combined revenue growing 13%. Earnings per share (EPS) was $2.59, beating analyst estimates of $2.47, and representing a 17% increase. The strong EPS performance was driven by improved profitability in AI and storage, as well as operational scaling. ISG revenue was a Q3 record $14.1 billion, up 24%, with servers and networking revenue at $10.1 billion, up 37%.

Publication Date: Nov -26

📋 Highlights
  • Record Revenue and EPS Growth:: Total revenue hit $27 billion (+11%), EPS rose to $2.59 (+17%) driven by AI/storage profitability and operational scaling.
  • AI Server Momentum:: Booked $12.3B in orders, shipped $5.6B, with a $18.4B backlog and 2026 shipment target of $25B (+150% YoY).
  • Strong ISG Performance:: ISG revenue reached $14.1B (+24%), with servers/networking up 37% to $10.1B, and margins improved 350 bps sequentially.
  • Cash Flow and Shareholder Returns:: Generated $1.2B cash from operations, returned $1.6B to shareholders, with Q4 EPS guidance of $3.5 (+31% YoY).

Segment Performance

The company's storage revenue was $4 billion, down 1% year-over-year, but with strong demand for Dell's IP portfolio, particularly PowerStore, which saw double-digit growth for the seventh consecutive quarter. CSG revenue was $12.5 billion, up 3%, with commercial revenue up 5%, while consumer revenue declined 7%. Dell's AI server orders were a record $12.3 billion, and shipments were $5.6 billion during the quarter, driven by strong demand for its AI solutions.

Guidance and Outlook

For Q4, Dell expects revenue between $31 and $32 billion, up 32% at the midpoint, with ISG and CSG combined expected to grow 34%. The company expects diluted non-GAAP EPS to be $3.5, up 31% at the midpoint. Dell is optimistic about its AI server business, citing a strong backlog of $18.4 billion and a five-quarter pipeline that's multiples of that. The company expects AI server shipments to reach $25 billion this year, a 150% increase over last year.

Valuation and Metrics

With a P/E Ratio of 16.76 and an EV/EBITDA of 13.05, Dell's valuation appears reasonable, considering its strong growth prospects. The company's Return on Invested Capital (ROIC) is 13.17%, indicating efficient use of capital. Analysts estimate next year's revenue growth at 12.0%, which is factored into the current valuation. The stock's Dividend Yield is 1.6%, providing a relatively stable return for investors.

Operational Highlights

Dell's ISG margins improved by 350 basis points sequentially in Q3, driven by demand growth for its Dell IP storage portfolio, pricing discipline, and improvements at a product level within the portfolio. The company expects to maintain a mid-single-digit operating margin in AI servers, despite competitive pressures. In PCs, Dell is working to recapture share in non-premium segments and is being more aggressive in the holiday season in consumer.

3. NewsRoom

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Dell Technologies Declares Quarterly Cash Dividend

Dec -04

Source: businesswire.com

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Michael Dell Expects Others to Donate to Trump Accounts for Kids

Dec -04

Source: youtube.com

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First Look: Insurers, Auto Rules, AI and Fed Jitters

Dec -04

Source: gurufocus.com

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4 Top Beaten-Down Tech Stocks

Dec -04

Source: seekingalpha.com

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Dell: The Infrastructure Powerhouse That Will Profit From The AI Boom

Dec -04

Source: seekingalpha.com

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Dell-IP Storage Fuels Growth And Protects Margins -- What Investors Should Know

Dec -03

Source: seekingalpha.com

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Market Today: Fed hopes lift stocks; AWS AI rollout; Prada-Versace deal

Dec -03

Source: gurufocus.com

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1 Magnificent Artificial Intelligence (AI) Stock to Buy Before It Soars 28%, According to Wall Street Analysts

Dec -03

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.47%)

6. Segments

Client Solutions Group (CSG)

Expected Growth: 12.3%

Dell Technologies' IT services and solutions segment growth is driven by increasing demand for digital transformation, cloud adoption, and growing need for cybersecurity solutions, as well as the company's strong partnerships and strategic acquisitions.

Infrastructure Solutions Group (ISG)

Expected Growth: 4.5%

Dell Technologies’ Infrastructure Solutions Group is driven by increasing demand for digital transformation, hybrid cloud adoption, and the need for modernized infrastructure to support emerging technologies like AI and IoT.

Corporate and Other

Expected Growth: 5.1%

Dell Technologies Inc.'s corporate and other operations will experience steady growth driven by increasing demand for digital transformation, cloud computing, and cybersecurity solutions, as well as strategic acquisitions and investments in emerging technologies.

7. Detailed Products

Dell EMC PowerEdge Servers

Industry-leading servers designed for business-critical applications, offering scalability, reliability, and performance.

Dell EMC Storage

A wide range of storage solutions, including all-flash, hybrid, and object storage, designed for scalability, performance, and data protection.

Dell EMC Networking

A portfolio of networking solutions, including switches, routers, and wireless access points, designed for scalability, security, and performance.

Dell Client Solutions

A range of laptops, desktops, and workstations designed for business and consumer use cases, offering performance, mobility, and security.

Dell EMC Data Protection

A suite of data protection solutions, including backup, recovery, and archiving, designed for data availability, security, and compliance.

VMware Virtualization

Industry-leading virtualization solutions, including vSphere, vSAN, and NSX, designed for server, storage, and network virtualization.

Pivotal Cloud Foundry

A cloud-native platform for building, deploying, and managing modern applications, designed for speed, agility, and scalability.

RSA Security

A suite of cybersecurity solutions, including identity, access, and threat detection, designed for security, compliance, and risk management.

8. Dell Technologies Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Dell Technologies Inc. faces moderate threat from substitutes, as customers have limited alternatives for its products and services. However, the company's focus on innovation and customer experience helps to mitigate this threat.

Bargaining Power Of Customers

Dell Technologies Inc. has a diverse customer base, which reduces the bargaining power of individual customers. The company's strong brand reputation and customer loyalty programs also help to minimize this threat.

Bargaining Power Of Suppliers

Dell Technologies Inc. has a large and diverse supplier base, which reduces the bargaining power of individual suppliers. However, the company's dependence on a few key suppliers for critical components may increase this threat.

Threat Of New Entrants

Dell Technologies Inc. operates in a highly competitive industry, but the company's strong brand reputation, established distribution channels, and significant investments in research and development create barriers to entry for new entrants.

Intensity Of Rivalry

Dell Technologies Inc. operates in a highly competitive industry, with intense rivalry among established players. The company's focus on innovation, customer experience, and operational efficiency helps to mitigate this threat, but the company must continue to innovate and adapt to changing market conditions.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 110.19%
Debt Cost 7.03%
Equity Weight -10.19%
Equity Cost 8.57%
WACC 6.87%
Leverage -1081.28%

11. Quality Control: Dell Technologies Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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HP

A-Score: 5.2/10

Value: 8.2

Growth: 3.7

Quality: 4.8

Yield: 7.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

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NetApp

A-Score: 5.2/10

Value: 3.4

Growth: 5.8

Quality: 7.2

Yield: 4.0

Momentum: 4.0

Volatility: 7.0

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Arista Networks

A-Score: 5.0/10

Value: 0.0

Growth: 9.4

Quality: 8.5

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

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Dell Technologies

A-Score: 4.7/10

Value: 5.3

Growth: 4.0

Quality: 4.6

Yield: 3.0

Momentum: 7.0

Volatility: 4.0

1-Year Total Return ->

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Western Digital

A-Score: 4.5/10

Value: 2.3

Growth: 3.4

Quality: 7.1

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

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Super Micro Computer

A-Score: 4.4/10

Value: 3.3

Growth: 9.9

Quality: 5.6

Yield: 0.0

Momentum: 6.5

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

138.99$

Current Price

138.99$

Potential

-0.00%

Expected Cash-Flows