Top Wall Street Forecasters Revamp Dell Price Expectations Ahead Of Q4 Earnings

As Dell Technologies (DELL) prepares to report its fiscal Q4 2025 earnings on February 27, top Wall Street analysts have been busy revising their price targets and ratings for the tech giant. The consensus among analysts has shifted significantly, with the average price target now at $146.59, representing a 30.92% increase from the current stock price of $111.97. The highest price target stands at $185, while the lowest is $115. The average analyst rating for DELL stock is "Strong Buy," indicating a bullish outlook on the company's near-term prospects.



What's driving this optimism among analysts? Several key factors contribute to their bullish stance:

1. Strong Analyst Ratings: A majority of analysts have a "Strong Buy" or "Buy" rating for DELL, with only one analyst having a "Hold" rating. This consensus reflects analysts' confidence in the company's future performance.
2. Positive Earnings Surprises: DELL has a history of beating EPS estimates, with a 100% beat rate in the past 12 months compared to the industry average of 66.90%. This track record has likely contributed to analysts' upward revisions in price targets.
3. AI Server Demand: AI server demand remains strong, with orders reaching $3.6 billion in Q3 2024, up 13% quarter-over-quarter, and backlog growing 18% to $4.5 billion. Analysts expect AI server revenue to generate $16.4 billion in FY 2026, with nearly all of the year-over-year increase coming from AI servers.
4. PC Market Recovery: Although PC demand remains sluggish, DELL is benefiting from a gradual recovery in the PC market. The expected Windows 10 end-of-life refresh cycle may not be as strong as initially projected, but AI-powered PCs are expected to be a bigger long-term catalyst for growth.
5. Partnerships and Collaborations: DELL's partnerships with Nvidia and AMD further strengthen its AI positioning. The collaboration with Nvidia to enhance AI efficiency using the Run:ai platform and the launch of new commercial PCs powered by Ryzen PRO processors reinforce DELL's role as a key supplier of AI server racks.
6. Fiscal Q4 2025 Guidance: For fiscal Q4 2025, DELL guided to $24.0-25.0 billion in total revenue and diluted Non-GAAP EPS of $2.50 (plus or minus $.10), in line with expectations of $24.5 billion and $2.52, ahead of the release next week. The ISG segment revenue is projected to make up $11.7 billion, and to see its gross margin improve to 35.8% quarter over quarter.



As we await DELL's Q4 earnings report, it's clear that top Wall Street analysts are bullish on the company's prospects. Their revised price targets and ratings reflect their confidence in DELL's strong performance and growth potential, particularly in the AI server and PC markets. Investors should closely monitor the company's earnings release and the subsequent analyst commentary to gauge the market's reaction and make informed investment decisions.