Dell Technologies Faces Market Challenges Despite Solid Revenue Growth

With a market cap of $70.1 billion, Dell Technologies Inc. (DELL) is a major player in the global laptop and PC industry. Based in Round Rock, Texas, the company operates through two main segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). Its reach extends across the Americas, Indo-Pacific, and EMEA regions.

Stock Performance Compared to Market Trends

Dell’s stock has struggled over the past year. It posted a 17.8% gain for the 52-week period, but it has dropped by 11.8% year-to-date (YTD). This performance is below the S&P 500 Index’s impressive gains of 21.8% in the past year and 2.7% in 2025.

When comparing Dell to the Technology Select Sector SPDR Fund (XLK), the company has performed slightly better, outperforming XLK’s gain of 14.2% over the past year. However, it lagged in 2025, where XLK saw a minor drop of 66 basis points.

Mixed Financial Results Prompt Stock Decline

Dell’s stock fell by 12.3% after the release of its mixed Q3 results on November 26. The company reported a 9.5% year-over-year increase in net revenues, reaching $24.4 billion, but it did not meet analysts’ expectations fully. On a positive note, non-GAAP earnings rose by 14.4% year-over-year to $2.15 per share, surpassing forecasts. Nevertheless, Dell’s reduced revenue guidance for Q4 caused concerns among investors.

Future Expectations and Analyst Ratings

Looking ahead, Dell is scheduled to release its fiscal 2025 results, ending in January, later this month. Analysts anticipate a substantial 12.7% year-over-year growth in earnings, forecasting $6.92 per share. Dell has a strong record of exceeding expectations, having done so in the past four quarters.

Among the 20 analysts reviewing DELL stock, the consensus rating is a “Strong Buy,” which includes 15 “Strong Buy,” two “Moderate Buy,” and three “Hold” ratings. This outlook has remained stable over the past three months.

As of November 27, Melius Research analyst Ben Reitzes reaffirmed a “Buy” rating on DELL and raised the price target to $155. The average price target for DELL is $149.42, suggesting a 47% premium relative to current prices, while the highest target of $185 indicates a potential upside of 82%.

On the date of publication, Aditya Sarawgi did not hold any positions in the securities mentioned in this article. All details are intended for informational purposes only. For more information, please refer to the Barchart Disclosure Policy.

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.