Key Takeaways Shares of Dell Technologies declined 3.39% even as analysts expressed confidence before the September 1 quarterly report. J.P. Morgan reaffirmed its Buy recommendation with a $5
Shares of Dell Technologies (DELL) slipped 3.39% on August 28 despite receiving positive coverage from J.P. Morgan just days before the company unveils its Q2 financial results on September 1.
Analyst Joseph Cardoso at J.P. Morgan reaffirmed his Buy stance on Dell shares while establishing a $565 price objective. His research note suggests the technology giant may once again increase its Fiscal Year 2027 revenue outlook during the upcoming earnings announcement.
The company currently projects 47% revenue expansion for this fiscal year. While this represents robust growth, Cardoso’s analysis indicates actual performance trends may prompt executives to deliver another upward revision.
The optimistic perspective centers primarily on artificial intelligence infrastructure demand. According to research firm 650 Group, the AI-server segment is now projected to expand by more than 80% year-over-year throughout 2026. This represents a substantial increase from the 64% growth rate the firm anticipated just 90 days prior.
This rapid acceleration in forecasts signals that demand is significantly outpacing earlier industry predictions. As a major competitor in this segment, Dell stands to benefit directly from strengthening AI-server sales.
Artificial intelligence isn’t the only catalyst behind the upbeat forecast. The traditional server market is also demonstrating stronger momentum. Current projections for total server market growth in 2026 now exceed 30%, up considerably from the earlier 22% estimate.
According to J.P. Morgan’s research, recent quarterly results across the technology sector combined with proprietary channel intelligence support this upgraded outlook. This reinforces the firm’s view that Dell’s existing guidance may prove conservative.
Cardoso notes that the anticipated guidance increase likely won’t match the magnitude of the previous adjustment. The company already implemented a substantial upward revision during the last quarterly report. Nevertheless, the trajectory remains positive.
The Street consensus calls for adjusted earnings of $4.91 per share and GAAP earnings of $4.43 per share for the reporting period. Revenue projections center around $44.5 billion, representing a 51% surge compared to the $29.78 billion recorded in the year-ago quarter.
The company has surpassed earnings expectations in five out of the past six reporting periods. The single shortfall occurred in the quarter concluded in April 2025, delivering $1.55 per share versus the $1.69 consensus estimate.
The latest quarterly report ending April 2026 demonstrated exceptional outperformance. Dell delivered $4.86 per share compared to the $2.94 Street estimate, representing a remarkable 65% positive surprise. Such performance helps explain the sustained bullish sentiment surrounding the stock.
Among Wall Street analysts, DELL stock maintains a Moderate Buy rating based on 12 Buy recommendations, five Hold ratings, and zero Sell ratings issued over the past three months.
The consensus 12-month price objective stands at $519.36, suggesting approximately 14% appreciation potential from current trading levels. The median price target of $500 represents roughly 9.6% upside from the most recent closing price of $456.24.
Dell Technologies is scheduled to release Q2 financial results on September 1 for the fiscal period that ended July 31, 2026.
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