Dell beats Q4 revenue and profit estimates, raises buyback

Overview

• Tech provider's Q4 revenue rose 39%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company announced $10 bln increase in share repurchase authorization

Outlook

• Dell expects FY27 revenue between $138 bln and $142 bln, up 23% yr/yr at midpoint of $140 bln

• Company anticipates FY27 AI-Optimized Servers revenue of roughly $50 bln, up 103%

• Dell forecasts Q1 FY27 revenue between $34.7 bln and $35.7 bln, up 51% yr/yr at midpoint of $35.2 bln

Result Drivers

• AI-OPTIMIZED SERVERS - Dell reported record quarterly AI-optimized servers revenue, up 342% year over year, driving growth in Infrastructure Solutions Group

• COMMERCIAL CLIENT REVENUE - Dell's Client Solutions Group saw fourth-quarter commercial client revenue increase 16% year over year

Company press release: ID:nBw9PWb63a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the computer hardware peer group is "buy"

• Wall Street's median 12-month price target for Dell Technologies Inc is $160.00, about 29.6% above its February 25 closing price of $123.48

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 15 three months ago

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