Dell Technologies Inc. DELL
DELL remains a buy after delivering a 43% EPS beat ($7.04 actual vs $4.91 estimate) in Q2 FY2027, with revenue growing 57.7% YoY to $47.0B as AI server demand accelerates. The stock trades at a 20.7% discount to the peer median PE of 41.9x despite record results, while operating margin expanded to 7.4% in FY2026 from 6.1% in FY2024 and FCF reached $8.5B.
Gross margin compression from 23.8% to 20.0% over two years and $2.55B in net insider selling over 24 months warrant monitoring, but the combination of below-peer valuation, surging AI-driven revenue growth, and expanding operating profitability supports accumulation.
What could go wrong
- Gross margin compression. Gross margin declined from 23.8% in FY2024 to 20.0% in FY2026, suggesting AI server mix is pressuring unit economics at the gross level even as operating leverage improves.
- Heavy insider selling. Insiders net sold $2.55B over 24 months with 1,854 dispositions versus 156 acquisitions, signaling potential concern about valuation or growth sustainability.
- Rising leverage. Total debt increased from $24.6B in FY2025 to $31.5B in FY2026 while stockholders equity remains negative at -$2.5B, increasing financial risk.
- Short-term technical weakness. Stock trades below its 50-day MA of $434.22 with a negative MACD histogram of -3.97 and RSI at 44.8, suggesting near-term momentum has cooled after a significant run-up from the 200-day MA of $247.74.
What would change my mind
Where this comes from: earnings_surprises (period_end 2026-09-01) · quarterly_results (fiscal_year 2027, Q2) · peer_relative · derived_metrics. Orin's read on DELL; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All DELL filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Vanguard Capital Management | $8.2B | 0.2% of fund |
| State Street | $5.9B | 0.2% of fund |
| Bank Of America /De/ | $4.7B | 0.3% of fund |
| Jpmorgan Chase & | $4.3B | 0.2% of fund |
| Vanguard Portfolio Management | $3.3B | 0.1% of fund |
| Geode Capital Management | $3.3B | 0.2% of fund |
131 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 2981 Form 4 filings, net −$3.4B. Of the 50 on hand, 0 were open-market purchases and 37 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about DELL
Orin answers questions about DELL from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 31.4× | 12.8× | 53.3× |
| EV/EBITDA | 21.1× | 8.1× | — |
| P/S | 2.41× | 0.67× | — |
Its P/E sits above all 5 of the last 5 years (+4.88σ from its own mean).
18.0%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $8.6B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$563
$289 – $735 · +2% against today's price
- 25 buy or overweight
- 18 hold
- 2 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| DELLDell Technologies Inc. | $365B | 31.4× | 21.1× | 19.8% | 7.5% | -575% |
| ADIAnalog Devices, Inc. | $188B | 45.5× | 29.8× | 65.8% | 29.8% | 12% |
| CDNSCadence Design Systems, Inc. | $85B | 61.1× | 39.5× | 88.5% | 23.6% | 23% |
| MSIMotorola Solutions, Inc. | $76B | 35.9× | 22.4× | 50.0% | 17.4% | 86% |
| STXSeagate Technology Holdings plc | $207B | 63.5× | 49.2× | 45.6% | 26.1% | 348% |
| WDCWestern Digital Corporation | $163B | 17.4× | 18.7× | 48.9% | 72.9% | 119% |
The median is of the 5 peers listed above and nothing else — check it against the column. This company trades 30.9% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Discounted cash flow
| Model | Fair value | Against | Computed |
|---|---|---|---|
| Standard DCF | $113 | $378.98 · −70% | 2026-06-10 |
| Levered DCF | $79 | $378.98 · −79% | 2026-06-10 |
The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.