Dell Earnings Preview

Dell Technologies is set to report earnings after Thursday's close, with the Street expecting $1.69/share on $23.10 billion in revenue, while the whisper number is $1.76/share. The stock, currently trading near $113, has been in a downtrend since May but is attempting to bottom, and its reaction to the earnings news will be critical, given its history of volatile movements post-earnings and future growth expectations to $10.37 in 2027 driven by AI.

Analysis

Dell Technologies (DELL) is scheduled to report earnings after Thursday's close, with significant attention on its performance relative to Street expectations of $1.69 earnings per share (EPS) on $23.10 billion in revenue, and a 'whisper number' of $1.76 EPS. The stock, currently trading near $113 after reaching a record high near $179.70 in 2024, is known for substantial post-earnings price movements. While Dell's historical earnings have shown volatility (e.g., $7.35 EPS in 2020, $4.88 in 2021, $7.61 in 2023, and $7.37 in 2024), future earnings are projected to grow consistently to $8.14 in 2025, $9.21 in 2026, and $10.37 in 2027, largely attributed to advancements and demand in Artificial Intelligence, a key focus for its Infrastructure Solutions Group (ISG). The company's current price-to-earnings ratio stands at 14, approximately 0.6 times that of the S&P 500. From a technical perspective, DELL has been in a downtrend since May 2024 but is currently attempting to establish a bottom, having recently risen above its 50-day and 200-day moving averages; however, it remains 36% below its 52-week high. The market anticipates a notable impact from this earnings release, with sentiment leaning moderately positive.

Key Decisions for Investors

• Investors should prepare for potential significant share price volatility post-earnings, closely watching whether Dell meets or exceeds the $1.69 EPS consensus and the $1.76 whisper number, as this will likely dictate the immediate market reaction.
• Traders should monitor key technical levels following the announcement; a sustained move above recent resistance could signal a bottoming formation, whereas a failure and decline could reaffirm the existing downtrend.
• Long-term oriented investors might view the current valuation (P/E of 14) and AI-driven growth projections as compelling, but should balance this with the stock's recent underperformance and historical earnings variability when considering new or adjusting existing positions.