Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 26 Feb, 26 | DELL | Buy | USD 123.48 | USD 130.0 | USD 138.0 | 1 day | Closed |
16.46%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The company operates through Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) segments. The ISG segment provides modern and traditional storage solutions, including all-flash, purpose-built, hyper-converged infrastructure, software-defined storage, and general-purpose and AI-optimized servers. This segment also offers networking products and services comprising wide area network infrastructure, data center and edge networking switches, and cables and optics that help its business customers to transform and modernize their infrastructure and complementing its server and storage solutions; and software, peripherals, and services, including consulting and support, and deployment. The CSG segment provides notebooks, desktops, and workstations and branded peripherals that include displays, docking stations, keyboards, mice, webcam and audio devices, and third-party software and peripherals; and configuration, and extended warranties services. The company is involved in originating, collecting, and servicing customer financing arrangements and offers payment and consumption solutions and services, such utility, subscription, as-a-service, leases, and loans, as well as fixed-term leases and loans. It serves enterprises, governmental agencies and other public institutions, educational institutions, healthcare organizations, small and medium-sized businesses, and consumers. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in March 2013. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas.
Record Cash Flow Generation: FY26 cash flow from operations increased to USD 11.19 billion from USD 4.52 billion in FY25, marking 147% growth
AI Server Revenue Surge: FY26 AI-optimized server revenue reached USD 24.7 billion, compared with USD 9.3 billion in FY25, reflecting 166% growth
Gross Margin Compression: FY26 gross margin declined to 20.0% from 22.2% in FY25, indicating margin pressure due to AI mix and product cost dynamics
CSG Operating Income Decline: FY26 CSG operating income decreased to USD 2.83 billion, compared with USD 2.97 billion in FY25, representing a 5% decline
Dell Technologies’ investment profile is exposed to AI demand cyclicality, supply-chain constraints, competitive pricing pressure in servers and storage, leverage-related balance sheet risk, and margin volatility arising from product mix shifts toward lower-margin AI infrastructure
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 123.48 | 110.0 | 130.0 | 138.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Record Revenue Expansion Driven by AI Momentum: During FY26, Dell Technologies delivered record full-year revenue of USD 113.5 billion, representing a 19% year-over-year increase, compared with USD 95.6 billion in FY25. Growth was primarily driven by unprecedented demand for AI-optimized servers, with AI server revenue reaching USD 24.7 billion for the year. Infrastructure Solutions Group (ISG) was the principal growth engine, benefiting from large-scale AI infrastructure deployments.
Profitability and Operating Leverage Improvement: Operating income increased to USD 8.15 billion in FY26, up 31% year-over-year from USD 6.24 billion in FY25. Net income rose to USD 5.94 billion, reflecting 30% growth year over year. The expansion was supported by strong product revenue growth (+27% Y/Y), disciplined operating expense control (total operating expenses declined 3% Y/Y), and improved operating margin (7.2% vs. 6.5% in FY25).
Earnings Growth and Shareholder Value Creation: Diluted EPS increased to USD 8.68, up 36% Y/Y, while non-GAAP diluted EPS reached USD 10.30, up 27% Y/Y. The earnings growth was driven by higher operating income, margin expansion, and aggressive share repurchases, with approximately 54 million shares repurchased during the year. The company also announced a 20% dividend increase and expanded its share repurchase authorization by USD 10 billion.
Infrastructure Solutions Group (ISG) – AI-Led Acceleration: ISG revenue reached USD 60.8 billion, up 40% Y/Y, while operating income increased 27% Y/Y to USD 7.11 billion. AI-optimized server revenue grew 166% Y/Y to USD 24.7 billion. Traditional servers and networking grew 9%, while storage remained relatively stable (+1%). ISG accounted for 72% of total segment operating income, underscoring its strategic importance.
Client Solutions Group (CSG) – Moderate Growth with Margin Pressure: CSG generated USD 51.0 billion in FY26 revenue, up 5% Y/Y. Commercial revenue grew 8% to USD 44.1 billion, while consumer revenue declined 8% to USD 6.9 billion. However, CSG operating income declined 5% to USD 2.83 billion, reflecting margin compression and product mix challenges.
Cash Flow Strength and Balance Sheet Position: Cash flow from operations surged to a record USD 11.19 billion, up 147% Y/Y from USD 4.52 billion. Adjusted free cash flow reached USD 11.5 billion. Cash and cash equivalents increased to USD 11.5 billion at FY26 year-end, compared with USD 3.6 billion in FY25. However, total liabilities remained elevated at USD 103.8 billion, reflecting continued leverage usage.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Dell Technologies Inc. (NYSE: DELL) at the closing market price of USD 123.48, as on Feb 25, 2026
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Computer Hardware
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| DELL Dell Technologies Inc |
-9.82 2.34% | 409.50 | 24.44 | 15.65 | 1.22 | 4.39 | 1.34 | 12.81 |
| ANET Arista Networks |
4.74 2.87% | 169.67 | 39.49 | 31.45 | 13.08 | 11.15 | 12.18 | 31.54 |
| SMCI Super Micro Computer Inc |
2.88 10.37% | 30.66 | 49.25 | 28.90 | 5.69 | 17.11 | 5.65 | 57.68 |
| HPQ HP Inc |
0.32 1.38% | 23.50 | 9.33 | 8.67 | 0.56 | - | 0.70 | 7.42 |
| WDC Western Digital Corporation |
34.10 4.79% | 746.23 | - | 14.77 | 2.09 | 2.34 | 2.69 | -26.3627 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on February 26, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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