Key statistics

Is DELL a good stock to buy in 2026?

Given DELL’s impressive revenue growth of 18.8% and a strong 60.5% analyst ‘Buy’ rating, the company presents an interesting opportunity for investors. However, caution is warranted due to the current price trading significantly above its discounted cash flow fair value of $167.66 and a high short ratio, indicating bearish sentiment from some market participants. This mixed signal suggests a need for thorough due diligence before making an investment decision in DELL stock. Not investment advice.

2026 DELL price scenarios

Based on analyst consensus of $182.67 from 43 analysts. Not a prediction by Alert Invest.

About Dell Technologies Inc. (DELL)

Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports information technology (IT) solutions, products, and services worldwide. The company operates through three segments: Infrastructure Solutions Group (ISG), Client Solutions Group (CSG), and VMware.

At the helm since its inception, Michael Saul Dell leads Dell Technologies Inc. The company boasts a substantial global workforce of approximately 108,000 employees, reflecting its expansive operations. Dell’s distinctive strengths lie in its deep customer relationships, broad portfolio spanning client computing to complex data center infrastructure, and its strategic focus on emerging technologies like AI, edge computing, and multi-cloud environments, ensuring its relevance in a rapidly evolving tech landscape.

DELL competitive moat and business analysis

Dell Technologies operates in a highly competitive sector, yet it maintains its standing through significant scale and a broad product portfolio. Despite a net margin of 5.23%, which might appear modest compared to some software-centric tech giants, DELL’s ability to consistently generate substantial revenue of $113.54 billion underscores its operational efficiency in a hardware-intensive business. With ROE and ROIC data listed as N/A, it is challenging to directly assess its capital efficiency from these specific metrics; however, its Free Cash Flow (FCF) yield of 5.31% indicates solid cash generation capabilities.

Dell Technologies segments its business primarily into the Infrastructure Solutions Group (ISG), Client Solutions Group (CSG), and VMware, each catering to distinct market needs. The ISG segment focuses on servers, storage, and networking, driving enterprise solutions, while CSG addresses personal computers and client peripherals. Although specific geographical revenue breakdowns were not provided for fiscal year 2026, Dell’s global presence indicates a diversified revenue base across various regions, mitigating localized economic risks.

The competitive moat for DELL stock is continuously evolving, strengthened by its strong relationships with enterprise clients and its ability to adapt to technological shifts. The company’s recent revenue growth of 18.8% year-over-year suggests a positive trajectory, possibly driven by increased demand for its data center solutions and AI-ready infrastructure. Unfortunately, no direct transcript quote is available to provide specific management insights into the current moat trends or future strategic directions. However, continued investment in research and development and strategic partnerships are key to sustaining this momentum.

To truly understand DELL’s competitive standing, comparing it with peers like DELL vs ADI, DELL vs CDNS, and DELL vs FI is essential. While ADI (Analog Devices) and CDNS (Cadence Design Systems) operate in more specialized, higher-margin semiconductor and EDA software spaces, FI (Fiserv) provides financial technology, highlighting DELL’s diversified exposure across core IT hardware and enterprise solutions. DELL’s extensive reach and comprehensive offerings distinguish it, even as it navigates challenges common to the Computer Hardware industry.

Dell Technologies Inc. analyst rating

Based on 43 analysts. 60.5% rate DELL Buy or Strong Buy.

For a Technology sector company, a 60.5% ‘Buy’ consensus is generally considered a positive signal, indicating strong analyst confidence. While some high-growth tech firms might see higher ‘Strong Buy’ percentages, this still represents a clear majority favoring a positive outlook for DELL stock.

Is DELL undervalued or overvalued?

DELL stock appears undervalued compared to the broader Computer Hardware sector based on its P/E ratio, trading at a significant discount with a P/E of 26.21x versus the sector average of 44.6x. This could suggest that the market is not fully appreciating its earnings potential relative to its peers. However, a negative P/B ratio and the analyst consensus price target of $182.67, which implies a -23.5% downside from the current price, indicate a more complex DELL valuation picture.

The Discounted Cash Flow (DCF) model estimates a fair value of $167.66 for DELL stock, suggesting it is currently overvalued by nearly 30% relative to its intrinsic value. This divergence from the P/E ratio’s signal highlights the importance of considering multiple valuation metrics for a comprehensive view on whether DELL is a good stock to buy. Investors should weigh the relative P/E attractiveness against the DCF-indicated overvaluation when assessing DELL’s potential.

DELL financial health & key metrics

For value investors, Dell Technologies (DELL) presents a mixed financial picture that warrants careful consideration. While the company demonstrates robust revenue growth of 18.8% and a strong Free Cash Flow yield of 5.31%, its profitability metrics, such as a net margin of 5.23%, are relatively lean within the broader Technology sector. The unusually negative Debt/Equity ratio of -12.75x indicates a very strong equity position relative to debt, which is a positive sign of financial resilience. However, the current DELL stock price appears overvalued by nearly 30% according to its DCF fair value of $167.66, suggesting a premium is built into the current market price. The P/E ratio of 26.21x, significantly below the sector average of 44.6x, suggests that on an earnings multiple basis, DELL could be perceived as undervalued relative to its peers. Ultimately, investors should weigh these factors to determine if DELL’s growth potential justifies its current market valuation despite some profitability challenges and DCF-indicated overvaluation.

Dell Technologies Inc. earnings history & next report

Dell Technologies Inc. reported EPS of $3.89, beating estimates by 10.2%. Next earnings: 2026-05-28 with EPS estimate of $2.94.

When Dell Technologies reports its next earnings on 2026-05-28, investors should pay close attention to the actual EPS relative to the $2.94 estimate, as well as revenue figures to gauge the company’s growth momentum. Any commentary from CEO Michael Saul Dell on AI infrastructure demand, supply chain stability, and the performance of its ISG and CSG segments will be crucial for understanding the future trajectory of DELL stock.

DELL daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

DELL insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent DELL analyst rating changes

Dell Technologies Inc. stock news today

How does DELL compare to its peers?

When evaluating an investment in DELL stock, it’s often insightful to compare Dell Technologies against its key competitors in the Computer Hardware and broader Technology sectors. Understanding how peers perform can provide valuable context for DELL’s valuation, growth prospects, and market position, helping investors decide if is DELL a good stock to add to their portfolio.

FAQ — Dell Technologies Inc. (DELL) stock