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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 demand for AI-optimized servers, fueling a surge in revenue. The company's Q2 2025 earnings exceeded expectations, with revenue reaching $29.8 billion, a 19% year-over-year increase. Partnerships with Nvidia and Elastic signal a strategic shift toward higher-margin, software-like revenue streams. Management's cost reductions and tactical product launches support long-term margin and revenue growth. Citi analysts describe the company's investor event tone as "constructive" on demand outlook and earnings growth expectations.

1.c. Company Highlights

2. Dell Technologies Posts Record Q2 Revenue, Driven by AI Shipments

Dell Technologies reported a record $29.8 billion in revenue for the second quarter of fiscal year 2026, representing a 19% year-over-year increase. The company's earnings per share (EPS) also reached a record $2.32, beating analyst estimates of $2.29. Gross margin was $5.6 billion, or 18.7% of revenue, while operating expenses decreased 4% to $3.3 billion, or 11% of revenue. Net income was up 13% to $1.6 billion, driven by stronger operating income. As Yvonne McGill noted, the company's modernization efforts continue to drive internal efficiencies, decoupling revenue growth from operational expenses.

Publication Date: Aug -29

📋 Highlights
  • Record Revenue & EPS Growth: Q2 revenue hit $29.8 billion (+19%), driven by 22% growth in ISG/CSG, with EPS at $2.32 (+19%) and net income up 13% to $1.6 billion.
  • AI Momentum: AI server shipments reached $8.2 billion (nearly half of ISG revenue), with a $11.7 billion backlog and $5.6 billion in Q2 orders. Full-year AI guidance raised to $20 billion.
  • Cost Efficiency: Operating expenses dropped 4% to $3.3 billion (11% of revenue), while gross margin expanded to 18.7% ($5.6 billion), reflecting operational discipline.
  • Full-Year Guidance Raised: Revenue target increased to $107 billion (+12%), with ISG/CSG growth at 14% midpoint and AI margins expected to improve via scaling and value engineering.
  • Backlog & Market Shifts: AI pipeline grew with 6,700+ customers (primarily Blackwell), and traditional server demand rose due to Windows 10 end-of-life, with CSG showing 4 consecutive quarters of P&L growth.

Segment Performance

The company's Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) businesses both experienced significant growth, with combined revenue up 22% year-over-year. ISG saw strong demand for AI servers, with $8.2 billion in shipments and a backlog of $11.7 billion. CSG revenue was up 1%, with commercial revenue growing 2%. The company is raising its AI server shipment guidance to $20 billion for the year.

AI Server Growth and Profitability

Dell's AI server business is driving significant growth, with nearly half of ISG revenue coming from AI servers in Q2. While AI margins were dilutive due to one-time costs and supply chain expenses, the company expects margins to improve through value engineering, scaling, and expanding its enterprise customer base.

Valuation and Outlook

Using the current price, Dell's P/E Ratio is 18.58, and its P/S Ratio is 0.87. The EV/EBITDA ratio is 10.42. With the company's guidance for continued growth in ISG and CSG, as well as improving profitability, the stock may be poised for further upside. Analysts estimate next year's revenue growth at 9.1%. The company's focus on profitable growth and driving efficiency through the business is expected to drive improved margins and EPS growth.

Guidance and Expectations

Dell expects Q3 revenue to be between $26.5 billion and $27.5 billion, up 11% at the midpoint. ISG and CSG combined are expected to grow 13% at the midpoint, with ISG growing in the low 20s and CSG up mid-single digits. The company is raising its full-year revenue guidance to $107 billion, up 12%. Operating income is expected to be up roughly 7%, with diluted non-GAAP EPS expected to be $2.45, plus or minus $0.10.

3. NewsRoom

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Dell Technologies (DELL) Stock Slides as Market Rises: Facts to Know Before You Trade

Nov -11

Source: zacks.com

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Dell Technologies to Hold Conference Call Nov. 25 to Discuss Third Quarter Fiscal 2026 Financial Results

Nov -11

Source: businesswire.com

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DELL vs. SMCI: Which AI-Server Stock Should You Buy Right Now?

Nov -11

Source: zacks.com

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These AI Stocks Don't Get Enough Attention

Nov -11

Source: 247wallst.com

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Americana Partners LLC Makes New Investment in Dell Technologies Inc. $DELL

Nov -11

Source: defenseworld.net

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The Zacks Analyst Blog Accenture, Sanofi and Dell

Nov -11

Source: zacks.com

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Bull Signal Has Never Failed Dell Technologies Stock

Nov -10

Source: schaeffersresearch.com

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Bears are Losing Control Over Dell Technologies (DELL), Here's Why It's a 'Buy' Now

Nov -10

Source: zacks.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

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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

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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

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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

138.76$

Current Price

138.76$

Potential

-0.00%

Expected Cash-Flows