Dell Technologies Faces Challenges Amid Market Underperformance
With a market cap of $65.6 billion, Dell Technologies Inc. (DELL) stands as a significant player in the global IT solutions and services market. The company operates through its Infrastructure Solutions Group and Client Solutions Group, providing hardware, software, and financial services to businesses, governments, and consumers worldwide.
However, shares of the Round Rock, Texas-based firm have struggled over the past 52 weeks. DELL has seen a 27.4% decline, while the broader S&P 500 Index ($SPX) has experienced an 8.2% rally. Year-to-date, Dell’s share price is down 18.5%, compared to the SPX’s decline of 4.7%.
Furthermore, Dell has also lagged the Technology Select Sector SPDR Fund’s (XLK) 4.3% return during the past year.
Despite Dell surpassing Q4 2025 adjusted EPS expectations at $2.68 on February 27, shares fell 4.7% the following day because revenue fell short at $23.9 billion. Concerns also arose regarding the Client Solutions Group, where consumer revenue decreased by 12% year over year. The fiscal 2026 revenue guidance of $101 billion to $105 billion and projected EPS of $9.30 met expectations but did not exceed them.
Looking ahead, analysts anticipate that DELL’s EPS will grow 6.2% year-over-year to reach $7.94 for the fiscal year ending January 2026. The company has a strong earnings surprise history, beating consensus estimates in the last four quarters.
Among the 20 analysts covering the stock, there is a consensus rating of “Strong Buy,” derived from 15 “Strong Buy” ratings, two “Moderate Buys,” and three “Holds.”
This rating shows a slight decline in bullish sentiment compared to three months ago, when there were 16 “Strong Buy” ratings.
On February 28, Barclays raised its price target on Dell Technologies to $116, while maintaining an “Equal Weight” rating. The firm highlighted a mixed Q4 and in-line fiscal 2026 guidance, with expectations for AI server revenues to grow in the second half of the year amid a robust pipeline.
Currently, DELL is trading below the mean price target of $127.22. The highest price target of $155 suggests a potential upside of nearly 65% from current price levels.
On the date of publication, Sohini Mondal did not hold any positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data are for informational purposes only. For more details, view the Barchart Disclosure Policy here.
The views expressed herein are solely those of the author and may not reflect those of Nasdaq, Inc.
