Will Analysts’ Tweaks to Dell’s (DELL) Earnings Outlook Shift Perceptions of Its Growth Trajectory?

• Dell Technologies is preparing for its upcoming earnings release on August 28, 2025, with forecasts predicting meaningful year-over-year gains in both earnings per share and revenue.
• Despite recent minor downward revisions to analyst estimates, Dell's premium valuation signals continued confidence in the company's growth prospects ahead of the earnings announcement.
• We'll examine how anticipation of Dell's earnings growth impacts its future investment narrative and overall analyst outlook.

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Dell Technologies Investment Narrative Recap

To be a Dell Technologies shareholder, you need to believe in the company’s ability to capture value from enterprise AI trends and capitalize on the upcoming PC refresh cycle, while managing ongoing margin pressures in its core businesses. The recent earnings forecast indicating strong year-over-year gains remains the top short-term catalyst, while weaker analyst revisions do not materially change the biggest current risk: persistent margin pressure from competitive dynamics, particularly in the Client Solutions Group.

Among Dell’s latest announcements, the launch of co-developed OEM appliances with Trend Micro and NVIDIA stands out for its relevance to the AI growth narrative. These new AI-powered infrastructure offerings directly support the anticipated surge in enterprise demand, aligning closely with expectations for higher AI server shipments and upcoming earnings momentum.

On the other hand, investors should be aware that continued pressure on margins could impact...

Read the full narrative on Dell Technologies (it's free!)

Dell Technologies' outlook calls for $116.0 billion in revenue and $6.9 billion in earnings by 2028. Achieving these targets requires annual revenue growth of 6.2% and a $2.3 billion increase in earnings from the current $4.6 billion.

Uncover how Dell Technologies' forecasts yield a $138.14 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Fair value estimates from 18 Simply Wall St Community members range widely from US$102.13 to US$178.61 per share. While some expect much higher valuations, margin pressure in the Client Solutions Group remains a core challenge that could shape performance, making it essential to consider various viewpoints before making any conclusions.

Explore 18 other fair value estimates on Dell Technologies - why the stock might be worth as much as 37% more than the current price!

Build Your Own Dell Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Dell Technologies research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Dell Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Dell Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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