Key Takeaways for Dell Technologies Stock as of September 2026
- Blowout Beat: Dell posted revenue of $46.97B against a $44.50B Street estimate, a 5.56% beat, while adjusted EPS of $7.04 topped the $4.92 estimate by 43.14% and rose 203% YoY.
- Guidance Raise: Management lifted full-year revenue guidance by $25B to $192B at the midpoint (~70% growth) and raised full-year EPS guidance to $25.50 (~150% growth).
- AI Backlog Record: ISG revenue jumped 89% YoY to $31.8B as Dell booked a record $60.9B in AI orders and closed the quarter with a record $95B AI backlog.
- CEO Confidence: Jeff Clarke told investors the AI infrastructure opportunity now tops $1 trillion through 2030, with Dell “well positioned” against a pipeline he said keeps growing sequentially even after $131.7B in AI orders booked over the past year.
Dell just posted the kind of quarter that forces a re-rating conversation, with backlog running ahead of what the supply chain can build. See exactly how TIKR’s model prices that gap. Explore Dell Technologies stock data on TIKR for free →
DELL Stock Rallies as Q2 AI Orders Hit a Record $60.9 Billion
Dell Technologies (DELL) delivered a quarter that outran its own supply chain, with fiscal Q2 revenue climbing 58% year over year to $46.97 billion and beating the $44.50 billion Street estimate by 5.56%. Adjusted earnings per share hit $7.04, up 203% from $2.32 a year earlier and 43.14% ahead of the $4.92 consensus. GAAP EPS told a similarly steep story, rising 272.94% to $6.34.
The Infrastructure Solutions Group, Dell’s servers and storage arm, drove nearly all of it. ISG revenue jumped 89% to a record $31.8 billion, and operating income within the segment grew 225% to $4.8 billion, an operating margin of 15%, up 620 basis points. Inside that number sits the real headline: Dell booked $60.9 billion in AI server orders during the quarter, its highest total ever, and closed with a record $95 billion AI backlog after converting $131.7 billion of orders into revenue over the trailing 12 months. Traditional server revenue, meanwhile, grew 122% to $10.5 billion, and CFO David Kennedy noted demand there is outrunning supply just as badly as it is in AI. Storage revenue rose 26% to $4.9 billion, its sixth straight quarter of Dell IP demand growth ahead of the market.
That breadth is what convinced Jeff Clarke the opportunity has grown past a single product cycle. Addressing the durability of demand on the Q2 earnings call, Clarke said inference workloads alone are projected to grow 87 times by 2030, and “if you look at that math, we think the opportunity in front of us is more than $1 trillion over that time frame.” That framing explains why management raised full-year revenue guidance by $25 billion to $192 billion at the midpoint, up roughly 70%, with AI server revenue now guided to $74 billion for the year, triple last year’s total. Full-year EPS guidance climbed to $25.50, up approximately 150%.
Cash generation kept pace. Adjusted free cash flow reached $8.1 billion, funding a record $4.3 billion returned to shareholders, including 9.5 million shares repurchased at an average of $401. Operating expenses fell to 8.5% of revenue, the lowest rate in the company’s 42-year history, evidence that Dell’s scale gains are compounding as fast as its top line.
Dell’s second half now carries triple-digit server growth and an AI backlog nearly matching a full year of prior AI revenue. That combination is exactly what TIKR’s model has to reconcile against the current share price. See how TIKR values Dell Technologies stock for free →
TIKR Prices Dell Technologies Stock at $587, Anchored to AI Backlog Conversion
TIKR’s mid-case model values Dell Technologies stock at $587 by January 2031, implying 38% total return from the current price of $425, or 8% annualized over 4.4 years.
That annualized rate sits well below the growth rates Dell just posted and guided to, reflecting a model that prices in a normalization of today’s extraordinary AI-driven growth rather than a continuation of it.
The gap between an 8% annualized model return and 58% quarterly revenue growth is exactly the tension the second half of fiscal 2027 will test, as Dell works through a $95 billion backlog that already dwarfs the AI server revenue it booked in the first half of the year.
The target assumes traditional servers and storage keep contributing at current rates, a bet supported by 122% traditional server growth and six straight quarters of Dell IP storage demand outpacing the market.
Dell’s backlog conversion is the whole ballgame from here, and TIKR’s model gives investors the numbers to track it themselves rather than take management’s word for it. Access Dell Technologies stock valuation data on TIKR for free →
Should You Invest in Dell Technologies Inc.?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up Dell Technologies Inc. stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
