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On Friday, TD Cowen’s Krish Sankar adjusted the price target for Dell Technologies Inc (NYSE:DELL) upwards to $125 from the previous $120, while maintaining a Hold rating on the shares. This adjustment aligns with broader analyst sentiment, as InvestingPro data shows five analysts have recently revised their earnings estimates upward. Sankar’s assessment followed Dell’s announcement of robust AI server orders and Commercial PC sales, which are continuing to benefit from Windows 11 refreshes, showing a year-over-year increase of 9%.
The analyst highlighted the company’s disciplined cost management and share buybacks as supportive factors for the raised fiscal year 2026 earnings per share (EPS) target of $9.40. With a current market capitalization of $76.78 billion and a P/E ratio of 17.49, Dell appears to be trading at attractive valuations relative to its growth prospects. Despite potential macroeconomic challenges and the impact of tariffs and commodity costs, Dell has reiterated its FY26 revenue outlook in the range of $101-105 billion, building upon its current revenue base of $96.7 billion. The new EPS forecast has been slightly increased to approximately $9.40, adjusted by plus or minus $0.15, which is above the midpoint of the previous $9.30 target.
In the first quarter, Dell experienced a significant inflow of AI server orders, totaling over $12 billion, and anticipates shipping approximately $7 billion worth of AI servers in the July quarter, nearly quadrupling the previous quarter’s shipments. While consumer PC demand has been weak, Commercial PC demand has remained strong, and the storage sector has stayed stable.
Sankar concluded by noting Dell’s well-positioned product portfolio, the advantage of supply chain agility, and the company’s ability to drive operating leverage and free cash flow through continued cost discipline. According to InvestingPro analysis, Dell shows promising potential with 13 additional key insights available to subscribers, including detailed financial health scores and comprehensive valuation metrics. For in-depth analysis, investors can access Dell’s Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks.
In other recent news, Dell Technologies Inc. reported substantial developments in its AI server segment. The company secured $12 billion in AI orders during the first quarter, boosting its backlog to $14.4 billion, despite falling short of AI server revenue and gross margin expectations. Analysts from UBS, Aletheia Capital, Goldman Sachs, JPMorgan, and Raymond (NSE:RYMD) James have weighed in on these developments, with UBS maintaining a Buy rating but lowering the price target to $145. Aletheia Capital and Raymond James both reiterated a Buy rating, setting price targets at $150, while Goldman Sachs maintained a Buy rating with a $130 target. JPMorgan also raised its price target to $125, citing strong AI demand.
Dell’s earnings before interest and taxes (EBIT) and earnings per share (EPS) for fiscal year 2026 were revised, with Goldman Sachs noting a reduced EBIT outlook but an increased EPS guidance. Despite these adjustments, the company projected approximately $7 billion in AI server revenue for the second quarter. Dell’s share buyback strategy, which involved purchasing 22.1 million shares, contributed to the raised EPS guidance. Analysts highlighted the challenges Dell faces with traditional server demand and margin pressures from AI servers, but they remain optimistic about the company’s long-term position in AI deployments.
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