Dell Is Up 5% Today. Here’s Where the Stock Could Go in 2026

Key Stats for Dell Stock

• Today’s Performance: 5%
• 52-Week Range: $110 to $517
• Valuation Model Target Price: Around $550
• Implied Upside: 6%

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What Happened?

Dell Technologies stock is up about 5% today, trading near record highs as investors continue to reward a fiscal second-quarter report that strengthened the case that Dell can turn the AI infrastructure boom into durable earnings growth. Dell reported record quarterly revenue of $46.97 billion, up 58% year over year, while adjusted EPS reached $7.04, well above the roughly $4.91 consensus estimate. Its PC business also grew 20%, the fastest pace in five years, showing that the current expansion extends beyond AI infrastructure.

Dell stock is up today because record AI server orders, a $95 billion backlog, and sharply higher full-year guidance gave investors clearer evidence that AI infrastructure spending is translating into stronger revenue and earnings. AI server orders reached a record $60.9 billion, AI server revenue hit $16.4 billion, and backlog climbed to $95 billion. Traditional server and networking revenue also rose 122%, while storage grew 26%, showing that enterprise spending is spreading beyond GPU-heavy systems into broader data-center modernization.

This week, Dell raised full-year revenue guidance by $25 billion to $192 billion and lifted adjusted EPS guidance to $25.50 from $17.90. Vice Chairman and COO Jeffrey Clarke said, “The single biggest lever of the operating margin improvement in the company is scale, operating leverage,” while management expects fiscal 2027 AI server revenue of about $74 billion, traditional server growth of more than 100%, and mid-teens growth in both storage and Client Solutions Group. That broader mix matters because storage contributes stronger profitability, while growing scale gives Dell more room to turn rising infrastructure sales into earnings.

Dell’s results also stand out against key infrastructure rivals Hewlett Packard Enterprise and Super Micro Computer. HPE reported 33.7% revenue growth in its latest quarter, compared with Dell’s 58%, while Super Micro remains another major competitor in AI-optimized servers. Wall Street responded with a broad reset in expectations, including Melius raising its target to around $735, JPMorgan to around $635, Bernstein to around $650, and Citi to around $600. Dell traded at about 18x forward earnings following the report, compared with roughly 13x for HPE and 8x for Super Micro, showing that investors are assigning Dell a premium for stronger execution while also setting a higher bar for future results.

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Is Dell Fairly Valued?

Under valuation assumptions, the stock is modeled using:

• Revenue Growth (CAGR): around 31%
• Operating Margins: around 11%
• Exit P/E Multiple: around 11x

The model’s 31% revenue-growth assumption is aggressive compared with Dell’s longer-term history, but the current business cycle provides support. Dell is guiding to $192 billion of fiscal 2027 revenue as AI servers, traditional infrastructure upgrades, storage demand, and PC refresh activity contribute simultaneously. Management also expects AI server revenue of about $74 billion this year, giving Dell substantial near-term growth visibility.

The 11% operating-margin assumption looks more conservative and is central to the investment case. Dell’s Infrastructure Solutions Group produced a 15% operating margin in the latest quarter, up 620 basis points, while operating income reached $4.8 billion, up 225%. Management attributed much of the improvement to scale and stronger storage profitability, suggesting Dell is turning higher infrastructure volume into better earnings economics rather than simply chasing AI server sales.

That profitability trend also appears in TIKR’s estimates. EBIT is modeled to rise from about $10 billion in fiscal 2026 to around $34 billion by fiscal 2030, while EBIT margins reach roughly 12% by the end of the forecast period. Achieving that trajectory depends on continued operating leverage, a richer mix of Dell-owned storage products, and successful conversion of the company’s enormous AI backlog.

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Traditional servers provide another meaningful growth lever because Dell still has about 1.2 million systems running 14th-generation or older hardware. Replacing that aging installed base can support demand as enterprises upgrade for greater power efficiency, security, and resiliency, while new AI workloads create additional demand for CPU-based computing. Storage adds another opportunity as AI applications create more data that businesses need to store, protect, and move across their infrastructure.

The 11x exit P/E multiple is defensible because it assumes Dell’s valuation eventually normalizes as today’s exceptional growth moderates. Dell traded at about 18x forward earnings following the report, above HPE and Super Micro, so the model does not require the current premium to persist indefinitely. Future returns therefore depend more on Dell delivering the expected earnings growth than on further valuation expansion.

Based on these inputs, TIKR’s model estimates a target price of around $550, implying about 6% total upside over roughly 2.4 years, or around 3% annually. At current levels, Dell appears fairly valued, with stronger returns likely requiring continued AI backlog conversion, sustained storage and traditional server growth, and further operating leverage beyond the already strong expectations reflected in the stock.

How Much Upside Does DELL Stock Have From Here?

Investors can estimate Dell Technologies’ potential share price, or what any stock could be worth, in under a minute using TIKR’s New Valuation Model tool.

All it takes is three simple inputs:

1. Revenue Growth
2. Operating Margins
3. Exit P/E Multiple

From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.

If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.

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