Dell Technologies Expects Strong Earnings Growth Ahead of Q1 2026 Report

Round Rock, Texas-based Dell Technologies Inc. (DELL) operates as an information technology solutions provider. It designs, develops, manufactures, markets, sells, and supports a range of integrated solutions, products, and services. Currently valued at a market cap of $65.9 billion, Dell offers laptops, desktops, peripherals, servers, storage, and cloud computing software. The company serves a diverse customer base, including individual consumers, small businesses, large enterprises, and government institutions. Dell is set to announce its fiscal Q1 earnings for 2026 after the market closes on Thursday, May 29.

Earnings Expectations and Historical Performance

Analysts predict that Dell will report a profit of $1.47 per share, a 41.4% increase from $1.04 per share in the same quarter last year. Over the last four quarters, Dell has consistently exceeded Wall Street’s earnings estimates. In Q4 2025, Dell’s adjusted EPS was $2.68, which surpassed forecasts by 5.9%.

Future Profit Projections

For the entire fiscal year 2026, analysts estimate Dell will report a profit of $7.94 per share, up 6.2% from $7.48 in fiscal 2025. Furthermore, its EPS is projected to increase by 14% year-over-year to $9.05 in fiscal 2027.

Recent Stock Performance

Over the past year, Dell’s shares have decreased by 24.5%, which is significantly behind the S&P 500 Index’s ($SPX) rise of 8.4% and the Technology Select Sector SPDR Fund’s (XLK) increase of nearly 4.2% during the same period.

Impact of Recent Quarterly Earnings

On February 27, Dell’s shares fell 6.8% post its Q4 earnings report, primarily due to revenue of $23.9 billion falling short of consensus estimates by 3%. This revenue shortfall can be attributed to a 4.7% year-over-year decline in services revenue. However, revenue grew by 7.2% compared to the previous year, largely driven by an 11.8% increase in product revenue, which reached $18 billion. Additionally, the adjusted EPS of $2.68 marked an 18.1% improvement year-over-year and exceeded Wall Street’s expectations by 5.9%.

Analysts’ Recommendations

Wall Street analysts maintain a generally positive outlook on Dell’s stock, assigning a “Strong Buy” rating overall. Among the 20 analysts covering the stock, 15 recommend “Strong Buy,” two suggest “Moderate Buy,” and three indicate a “Hold.” The average price target for Dell stands at $128.47, suggesting a potential upside of 36% from current levels.

On the date of publication, Neharika Jain had no direct or indirect positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the disclosure policy here.

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