Is Dell Stock a Buy Ahead of Q2 Earnings? Here’s What Analysts Say

TLDR

• Citi has initiated a 90-day catalyst watch on DELL ahead of its Q2 earnings report
• Analysts expect diluted EPS of $4.65, up 121.4% year-over-year from $2.10
• DELL stock has gained 245.3% over the past 52 weeks, crushing the S&P 500’s 16.5% return
• Citi analyst Asiya Merchant maintains a Buy rating with a $515 price target
• 25 analysts cover the stock; 16 rate it “Strong Buy” with an average price target of $503.73

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Dell Technologies is heading into its Q2 earnings report with growing analyst confidence and a stock price that has already done a lot of heavy lifting.

DELL is currently trading around $439, based on the average analyst price target implying 14.7% upside to $503.73. The stock has surged 245.3% over the past 52 weeks, a run that has left the S&P 500’s 16.5% return in the dust.

Dell Technologies Inc., DELL

Citi analyst Asiya Merchant kicked off a 90-day catalyst watch on the stock on July 24, pointing to strengthening enterprise IT infrastructure spending as the key driver. Merchant holds a Buy rating and a $515 price target.

The catalyst watch reflects Citi’s confidence heading into earnings. Merchant cited AI investment cycles and rising demand for data center capacity as the engines behind Dell’s current momentum.

Wall Street is expecting a big number when Dell reports. Analysts are forecasting diluted EPS of $4.65 for Q2, which would mark a 121.4% jump from the $2.10 reported in the same quarter last year.

That kind of earnings growth doesn’t happen in a vacuum. Dell’s AI-optimized server business has been a standout, fueled by record AI orders and a growing enterprise customer base.

Dell has beaten Wall Street’s EPS estimates in each of the past four quarters. That consistency has helped build analyst confidence ahead of this print.

Analyst Outlook

Of the 25 analysts covering DELL, 16 give it a “Strong Buy,” two say “Moderate Buy,” and seven recommend a “Hold.” The consensus lands at “Moderate Buy.”

The average price target sits at $503.73, implying roughly 14.7% upside from current levels. Citi’s Merchant is more bullish, sitting above consensus at $515.

Looking further out, analysts expect full-year fiscal 2027 EPS of $17.77, up 92.1% from $9.25 in fiscal 2026. Fiscal 2028 estimates call for another 21% increase to $21.50.

Inside the Numbers

Dell’s GF Score stands at 69 out of 100. Its growth rank is 9/10, reflecting strong revenue momentum. Profitability scores 7/10, while financial strength comes in at 5/10.

The company’s P/E ratio is currently at 34.9x, well above its historical median. That’s a premium valuation, and it tells you investors are pricing in continued growth.

One number worth watching: insiders have sold approximately $1.46 billion worth of stock over the past three months, across 95 transactions. No insider buying was reported in that period.

DELL has outperformed the State Street Technology Select Sector SPDR ETF (XLK), which gained 37.1% over the same 52-week stretch the stock returned 245.3%.

The company’s Q2 earnings report is expected soon, with all eyes on whether it can keep the streak of EPS beats alive.