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DELL
DELL
Dell Technologies Inc.

Latest update

$409

Updated: Jun 16, 2026, 11:31 AM UTC

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Metrics

Dell Technologies Inc. (DELL) - Q2 2026 Update

Dell Technologies designs, develops, manufactures, markets, sells, and supports a range of comprehensive and integrated solutions, products, and services globally, serving enterprises, governmental agencies, educational institutions, healthcare organizations, small and medium-sized businesses, and consumers. The company operates through its Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) segments, offering modern storage solutions, AI-optimized servers, networking products, and traditional client devices like notebooks and desktops. Dell also provides financial arrangements, including payment and consumption solutions. At Q2 2026, Dell reported significant revenue and net income growth YoY, with healthy free cash flow generation, though quarter-over-quarter FCF saw a decline. The company's valuation, as measured by P/E, is attractive for forward earnings, but overall profitability and debt metrics show some mixed signals.

Growth pace
How fast the underlying business is moving, quarter by quarter. Hover any tile for the plain-English meaning.

Revenue

The total dollars the company billed customers. When this number grows quarter after quarter, the business is finding more demand.

quarterly

Latest

$43.8B

Q2 2026

The most recent reported figure, in the company's own currency and reporting cadence.

QoQ

+31.3%

vs Q1 2026

How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.

YoY

+87.5%

vs Q2 2025

How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.

CAGR

insufficient history

The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.

Net income

What's left from revenue after paying every cost — employees, materials, taxes, interest. Sometimes called profit or 'the bottom line.'

quarterly

Latest

$3.4B

Q2 2026

The most recent reported figure, in the company's own currency and reporting cadence.

QoQ

+52.2%

vs Q1 2026

How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.

YoY

+256.3%

vs Q2 2025

How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.

CAGR

insufficient history

The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.

Free cash flow

The cash actually left in the bank after the company has paid for everything and reinvested in itself. Harder to fake than net income.

quarterly

Latest

$3.1B

Q2 2026

The most recent reported figure, in the company's own currency and reporting cadence.

QoQ

-21.1%

vs Q1 2026

How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.

YoY

+39.9%

vs Q2 2025

How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.

CAGR

insufficient history

The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.

Quarterly revenue, net income & free cash flow
Bars show what the company actually reported each quarter. The growth chart below turns these into the QoQ / YoY pace the rest of this page uses.
Annual growth rate (YoY)
Year-over-year change in full-year totals. Strips out quarterly noise and seasonality so the multi-year trend is visible — not just the last 12 months.
Compound annual growth (CAGR)
The smooth yearly growth rate across each window. The "start → end" line shows the dollar value at the beginning and end of the window.
Metric3 yr2 yr1 yr
Revenue
+87.6%
$23.4B$43.8B
Net income
+256.6%
$965M$3.4B
Free cash flow
+40.0%
$2.2B$3.1B
Valuation — P/E

P/E TTM

32.6×

Trailing twelve months. Today's price divided by the last year of actual earnings.

P/E NTM

19.3×

Next twelve months. Today's price divided by what analysts expect the company to earn over the coming year.

Balance sheet & valuation
The five numbers that decide whether the growth above is safe, sustainable, and reasonably priced. Descriptions on every tile — hover or scroll to read.

Profitability

Mixed

Operating margin (and the wider return profile) tells you how efficiently each dollar of sales becomes profit. High and rising = pricing power; low or falling = the business is grinding.

Share count

Shrinking

Are the buybacks outrunning the stock-based comp? A shrinking share count means every existing share owns a bigger slice of future earnings.

Debt load

Heavy

Total debt against cash and earnings power (EBITDA). Light debt leaves room to invest and weather downturns; heavy debt shrinks the margin for error.

Debt service

Strong

Whether the cash the business generates easily covers its interest and loan payments. Strong here = no forced selling in a bad year.

Cash return at today's price

2.0%

Free cash flow divided by market cap — the cash yield you're getting for the price you pay. Above ~6% is rich, below ~3% is thin. P/E shown when the yield is too small to be useful.

What stands out
  • Revenue growth is robust, with a 87.5% YoY increase and 31.3% QoQ growth in Q2 2026.
  • Net income surged by 256.3% YoY and 52.2% QoQ in Q2 2026.
  • Free cash flow grew 39.9% YoY but declined 21.1% QoQ.
  • TTM P/E is 32.6x, while NTM P/E is an attractive 19.3x, signalling strong forward earnings expectations.
  • Profitability is mixed, with a 6.3% profit margin and 8.9% operating margin.
  • The balance sheet shows a heavy debt load, though debt service is considered strong.
  • Share count is shrinking, indicating shareholder-friendly capital allocation.
  • The stock is significantly extended above its short-term and long-term moving averages, and current trading volume is contracting.

Thesis

Why this read

DELL remains in a markup phase driven by strong secular tailwinds, particularly from AI. However, the stock is extremely overextended on a short-term basis, making it a high-risk entry point for new capital. It needs a significant reset or consolidation to build a healthier base. The prior call correctly identified the need for stabilization, and that condition persists. We acknowledge the strong long-term trend but prioritize prudent entry and risk management, hence the 'WAIT' call.

Short-term thesis

Mixed73% conviction-2 ptsv1
Dell: Core Enabler in the AI Factory, Awaiting Entry Post-Extension

Dell Technologies is uniquely positioned to benefit from the AI infrastructure build-out due to its role as a critical systems integrator and thermal management expert for AI servers. Despite a strong underlying secular opportunity and robust growth metrics, the stock is currently overextended. Investors should monitor for a significant price pullback or consolidation at a more attractive valuation before adding to positions, acknowledging the mixed balance sheet and debt profile as a long-term consideration.

Long-term exposure

Avoid

The business or valuation backdrop is not ready for long-term conviction.

Entry window

Wait

The stock is in a long-term uptrend (markup cycle) but is significantly extended from its key moving averages. Expect continued stabilization or potential further retracement in the near term as it remains far from a reasonable entry point. Despite strong underlying momentum, the current week is likely to be choppy, and a pause is healthy before any potential renewed upward movement.

Risk check

Fragile

The downside can widen quickly if this setup goes wrong.

Alignment

Mixed

Neither horizon fully wins, so size and patience matter.

What supports it

  • Sales and cash still support a long hold.
  • Price still looks reasonable against the business.
  • Share count has been shrinking instead of diluting holders.
  • Earnings estimates have improved 66.2% over the past month.

What limits it

  • This needs smaller size or more patience.
  • Balance sheet is carrying real pressure.
  • Debt service looks stretched for current cash generation.
  • Stock price is extremely extended above both daily and weekly moving averages, indicating potential for a significant pullback.

Long-term thesis

Dell is a core beneficiary of the AI data center build-out, serving as a critical systems integrator and thermal management expert.

88opportunity75% thesis conf
Crossing Chasm5y horizon

Bottleneck Role

AI Factory systems integrator and thermal management expert. Dell's ability to efficiently integrate and cool high-density AI server clusters is a critical bottleneck in deploying large-scale AI infrastructure.

Consensus Blind Spot

The market might be underestimating Dell's sticky services revenue and the margin expansion potential from its role as a full-service AI infrastructure provider, beyond just hardware sales. The deep integration and bespoke solutions required for large-scale AI deployments create a high switching cost and premium pricing opportunity often overlooked by simple hardware narratives.

Demand Gap

The rapid and ongoing demand for AI processing power creates a significant gap in available, ready-to-deploy, and efficiently cooled AI server infrastructure. Enterprises and cloud providers need integrated solutions, not just components, which Dell provides.

Demand to Equity Scenarios

Bull70% conf

Exponential growth in enterprise AI adoption and sovereign AI initiatives.

Demand

+30%

Earnings

+25%

Equity implication

+40%

Significant increase in ISG segment revenue from AI servers, storage, and services, driving margin expansion and strong backlog.

Base85% conf

Steady but strong adoption of AI infrastructure, continued upgrades and data center modernization.

Demand

+15%

Earnings

+15%

Equity implication

+25%

Robust ISG growth, stable CSG, leading to sustained revenue and earnings growth above historical averages. Moderate margin improvement.

Bear45% conf

Slowdown in AI infrastructure spending due to economic recession or oversupply, intense competition.

Demand

-5%

Earnings

-10%

Equity implication

-20%

Reduced demand for ISG products, pricing pressure, and potential inventory build-up. Margin compression.

Dependency Chain

  1. 1Accelerating AI compute demand
  2. 2Need for specialized AI server hardware, integration, and thermal solutions
  3. 3Dell's expertise in ISG (AI-optimized servers, networking, consulting services)
  4. 4Increased utilization and pricing power for Dell's solutions
  5. 5Higher revenue and margin expansion in ISG segment
  6. 6Upward earnings revisions and P/E re-rating

Repricing Triggers

  • Better-than-expected ISG revenue and margin guidance in upcoming earnings reports.
  • New strategic partnerships or major contract wins in AI infrastructure.
  • Positive analyst upgrades focusing on Dell's AI services and integration capabilities.
  • Confirmation of sustained demand for liquid-cooled AI servers within the industry.
  • Accretive M&A activity that strengthens Dell's AI offerings.

Must be true

  • Demand for AI infrastructure, particularly high-density server and cooling solutions, will remain robust.
  • Dell successfully maintains its competitive edge in AI server integration and thermal management.
  • Pricing power for Dell's specialized AI solutions continues to expand margins.
  • The global economic environment does not severely impact enterprise IT spending.

Thesis broken if

  • Significant slowdown in ISG revenue growth or declining margins despite strong AI demand.
  • Loss of market share in AI server deployments to competitors.
  • Negative revisions to future earnings estimates by analysts.
  • Severe economic downturn leading to broad-based cuts in corporate IT budgets.
  • Evidence that Dell's AI solutions are becoming commoditized or lack differentiation.

History

What changed

Since the previous run · 1 month ago
Prior call was neutral

Signal

BUYBUY

Conviction

0.7%75%+74 pts

Long term

Maybe ownAvoidFlipped

Stock

$394.39$409.07+3.7%

Added since last run

9
  • Strong quarterly revenue and net income growth driven by AI server demand.
  • Attractive forward P/E suggests analysts expect continued high growth.
  • Shrinking share count indicates capital returning to shareholders.
  • Consensus expectations for future earnings are rising.
  • Positioned well in the secular AI theme as a systems integrator and thermal management expert.
  • Stock price is extremely extended above both daily and weekly moving averages, indicating potential for a significant pullback.
  • Contracting volume suggests waning immediate buying interest at current levels.
  • Mixed profitability and heavy debt load could introduce risk during market downturns or higher interest rate environments.
  • QoQ free cash flow decline suggests potential lumpiness in cash generation despite strong revenues.

No longer flagged

0

Nothing dropped this run

Model's reflection on the prior call

The prior call correctly anticipated the stock consolidating and trading within a range after an extreme run, with minimal price movement since the last update. The price target of $450 remains relevant, and the entry zone near $330-$350 was not reached during this consolidation period, reinforcing the 'WAIT' call.

Analysis timeline
3 runs

Jun 16, 2026

Latest

Updated Jun 16, 2026, 11:31 AM UTC

WeeklyWAIT
Long termAVOID
Confidence75% · High

Price at review

$409

The stock is in a long-term uptrend (markup cycle) but is significantly extended from its key moving averages. Expect continued stabilization or potential further retracement in the near term as it remains far from a reasonable entry point. Despite strong underlying momentum, the current week is likely to be choppy, and a pause is healthy before any potential renewed upward movement.

Jun 8, 2026

Updated Jun 8, 2026, 11:13 AM UTC

WeeklyWAIT
Long termWATCH
Confidence70% · Medium

Price at review

$394

The stock is currently resetting after an extreme run, and we expect further stabilization.

May 30, 2026

Updated May 30, 2026, 10:29 AM UTC

WeeklyWAIT
Long termWATCH
Confidence90% · High

Price at review

$421

The stock is currently overheated and moving too fast to touch comfortably right now. While the long-term path is higher, the current speed is unsustainable for a safe entry.