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what it is
Dell sells computers, servers, storage, and support to businesses and people who pretend their laptops never age.
how it gets paid
Last year Dell Technologies made $95.6B in revenue.
why it's growing
Revenue grew 299.3% last year. Record fourth-quarter revenues of $33.38 billion were more than $1.8 billion higher than our estimate and jumped nearly 40% compared to the previous-year tally.
what just happened
Dell's $33.38B quarter beat by more than $1.8B, and the server business did the heavy lifting.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
85/100 earnings predictability — you can trust these numbers
14.2x trailing p/e — the market's not buying it — or you found a deal
2.5% dividend yield — cash in your pocket every quarter
45.5% return on capital — every dollar works hard here
xvary composite: 69/100 — average
What they do
Dell sells computers, servers, storage, and support to businesses and people who pretend their laptops never age.
Dell split 2024 revenue almost evenly: 46% from infrastructure and 51% from client devices. That means you buy from them whether you need a server room or a new laptop. In FY2026, Dell said it had $64B in AI orders and shipped $25.2B in AI products. That backlog is customers already standing in line.
How they make money
$95.6B
annual revenue · their business grew +299.3% last year
total revenue
$95.6B
+299.3%
The products that matter
servers, storage, networking
Infrastructure Solutions Group
$33.38B in q4 revenue · +73%
this is the business changing the story. The latest quarter reached $33.38B in revenue, up 73%, as enterprises spent heavily on compute and storage tied to ai workloads.
the engine
pcs and workstations
Client Solutions Group
revenue detail unavailable here
this is still a major piece of a $95.6B company, even if this snapshot doesn't break out the number. That's a reminder that you still own a cyclical pc business along with the ai upside.
the ballast
enterprise ai servers
AI-optimized Servers
+342% sales growth
sales rose 342% in the latest quarter. Exact revenue isn't provided here, but the growth rate tells you where customer budgets are moving.
the rerating
Key numbers
$181
target price
That is 24% above $146.51. You are paying less than the forecast.
14.2x
trailing p/e
Trailing P/E (price divided by last year's profit) is 14.2x. You pay $14.20 for each $1 Dell earned.
45.5%
return on capital
Return on capital (profit on money invested) is 45.5%. Dell turns $100 of capital into $45.50 of profit.
2.5%
dividend yield
Dividend yield (cash paid to you each year) is 2.5%. You get paid while you wait.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $23.5B (19% of capital)
- net profit margin 6.6% — keeps 7 cents of every dollar in revenue
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in DELL 3 years ago → it's now worth $41,130.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
Dell's $33.38B quarter beat by more than $1.8B, and the server business did the heavy lifting.
Infrastructure Solutions Group drove the result with a 73% rise in top-line sales. Dell also returned $2.2B to shareholders through buybacks and dividends.
$33.38B
revenue
$3.89
eps
19.9%
gross margin
the number that mattered
The $33.38B quarter mattered because it beat estimates by more than $1.8B and showed the infrastructure business still has momentum.
-
dell technologies closed out fiscal 2025 (year ended january 30th) with strong results.
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record fourth-quarter revenues of $33.38 billion were more than $1.8 billion higher than our estimate and jumped nearly 40% compared to the previous-year tally.
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the advance was driven by another exceptional performance from the infrastructure solutions group.
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that division posted a 73% rise in the top line.
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sales of ai-optimized servers rose an astounding 342%, as artificial intelligence momentum continued to accelerate.
source: company earnings report, 2026
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What could go wrong
the #1 risk is ai server demand cooling before the valuation reset is earned.
high
ai demand normalizes
Dell's hottest growth pocket is infrastructure. That segment grew 73% in the latest quarter and ai-optimized server sales rose 342%.
If those growth rates come back to earth quickly, the stock loses the reason investors started paying attention again.
med
pc and enterprise spending stays cyclical
This is still a $95.6B hardware company, and part of that business moves with corporate refresh cycles and IT budgets.
If enterprise buyers pause, the slower parts of Dell's portfolio can drag on growth just as the market is pricing in acceleration.
med
low-margin model meets real debt
Dell carries $23.5B in long-term debt and only keeps 6.3% of revenue as net profit.
That means you don't get much cushion. Small margin pressure can hit earnings faster here than at a software company.
At a 6.3% net margin on $95.6B revenue, Dell doesn't have a giant profitability buffer. If ai demand cools at the same time core hardware stays sluggish, earnings compression follows fast.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
ai-optimized server growth
342% growth is the headline. You want to see whether it stays dramatically above the rest of the company.
earnings
next quarterly print
The next report needs to show that infrastructure momentum is still carrying the story, not just one lucky quarter.
risk
margin discipline
With a 6.3% net margin, even modest pricing pressure or component cost swings matter more than they would at a software company.
trend
institutional sponsorship
Institutions have been net buyers for three straight quarters. If that reverses while growth cools, the stock loses an important support beam.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak: they still think the tape likes this story.
risk profile
average
stability score 3 — this isn't a bunker stock, but it isn't chaos either.
chart momentum
below average
technical score 4 — the setup says expectations may have run ahead of the recent chart.
earnings predictability
85 / 100
management's earnings pattern is dependable. The debate is about growth durability, not whether the company can count.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 658 buyers vs. 477 sellers in 4q2025. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$99
$262
$147
current price
$181
target midpoint · +24% from current · 3-5yr high: $305 (+110% · 21% ann'l return)
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