Latest news with #PowerEdgeXE9680
Globe and Mail
3 days ago
- Business
- Globe and Mail
DELL's Margins Under Pressure: Will ISG Strength Drive a Rebound Ahead?
Dell Technologies DELL is suffering from a decline in gross margin, which contracted 80 basis points (bps) year over year to 21.6% in the first quarter of fiscal 2026. The dip was primarily driven by a more competitive pricing environment, particularly in the Client Solutions Group segment, and an unfavorable geographical mix within traditional servers. However, Dell's ISG (Infrastructure Solutions Group) segment played a key role in supporting overall gross margin performance. In the first quarter of fiscal 2026, ISG revenues grew 12% year over year to $10.3 billion, with servers and networking revenue reaching a record $6.3 billion, up 16% year over year. The company also saw robust demand for AI servers, which drove higher revenues and gross margin dollars. In the fiscal first quarter of 2026, Dell's AI-optimized server momentum saw an increase of $12.1 billion in orders. The flagship PowerEdge XE9680 experienced strong demand, contributing to the momentum in the AI space. The company shipped $1.8 billion worth of AI servers in the fiscal first quarter, and the AI server backlog remained healthy at $14.4 billion. Building on this momentum, Dell expects gross margin dollars to increase 10% quarter over quarter in the second quarter of fiscal 2026, driven by strong performance in ISG, particularly AI servers, and continued improvement in storage profitability. The company also expects to ship $7 billion worth of AI servers in the second quarter of fiscal 2026, which is expected to contribute significantly to gross margin growth. DELL Faces Stiff Competition From HPE and SMCI DELL is facing stiff competition in the server space against the likes of Hewlett Packard HPE and Super Micro Computers SMCI. Hewlett Packard is benefiting from robust demand for its AI-optimized servers, leading to significant revenue growth in its server segment. The company's multi-billion-dollar investment plan across expanding networking capabilities will diversify the business beyond the server and hardware storage markets, ultimately boosting margins in the long run. Super Micro Computer is evolving from just a server and hardware vendor into a full IT solutions provider. Products like DCBBS (Data Center Building Block Solutions) bundle hardware, software, cooling, networking and support into complete systems. This strategy increases revenue per deal and improves margins. It also makes customers more likely to stay with Super Micro Computer for future upgrades. DELL's Share Price Performance, Valuation and Estimates DELL's shares have gained 7.3% year to date, underperforming the broader Zacks Computer & Technology sector's return of 8.4%. DELL Stock Performance Image Source: Zacks Investment Research DELL stock is trading at a significant discount, with a forward 12-month Price/Sales of 12.36X compared with the Computer & Technology sector's 27.64X. DELL has a Value Score of B. Price/Sales (F12M) The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is pegged at $2.28 per share, which has increased by a couple of pennies in the past 30 days. This indicates a year-over-year increase of 20.63%. The consensus mark for 2025 earnings is pegged at $9.44 per share, which increased by a penny in the past 30 days. This suggests 15.97% year-over-year growth. DELL currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dell Technologies Inc. (DELL): Free Stock Analysis Report Super Micro Computer, Inc. (SMCI): Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report
Yahoo
20-06-2025
- Business
- Yahoo
Should You Buy, Sell or Hold Dell Technologies Stock at P/S of 0.77X?
Dell Technologies DELL shares are cheap, as suggested by a Value Score of stock is trading at a significant discount with a forward 12-month P/S of 0.77X compared with the Computer and Technology sector's 6.36X. Image Source: Zacks Investment Research However, DELL's shares have risen 1.2% in the year-to-date period, underperforming the Zacks Computer and Technology sector's appreciation of 1.6%. The underperformance can be attributed to a challenging macroeconomic environment, along with stiff competition in the PC market from companies like HP and Lenovo. The broader PC market recovery is slower than expected, with customers delaying purchases to evaluate AI-enabled PCs and prepare for the Windows 10 end-of-life. A competitive pricing environment, especially in the CSG segment, has affected profitability. Additionally, investor sentiment has also soured amid rising trade tension, with additional tariffs raising fears of escalating costs. However, Dell Technologies' shares have outperformed the Zacks Computer - Micro Computers industry's decline of 20.9%. The outperformance can be attributed to DELL's expanding portfolio and rich partner base. Image Source: Zacks Investment Research DELL is benefiting from an expanding partner base that includes Lowe's Companies LOW, NVIDIA NVDA, Worley WOR, Microsoft, Meta Platforms, Advanced Micro Devices and Imbue. Dell Technologies recently partnered with Lowe's to enhance customer and associate experiences through advanced AI and PC technology. Using the Dell AI Factory with NVIDIA, Lowe's is optimizing inventory, improving asset protection, and enriching in-store service. Dell Technologies' advanced infrastructure and high-performance PCs support innovation, efficiency, and long-term growth across Lowe's more than 1,700 stores and May 2025, Dell Technologies announced major advancements across the Dell AI Factory with NVIDIA to accelerate enterprise AI adoption. These include next-generation PowerEdge servers, enhanced AI data platforms, integrated software solutions, and new managed services for streamlined AI March 2025, Dell Technologies and Worley announced a collaboration to develop secure AI solutions using the Dell AI Factory with NVIDIA. This partnership with Worley aims to enhance project delivery and innovation while ensuring data privacy and intellectual property protection. Dell Technologies' expanding portfolio has been a key catalyst. The company is benefiting from the strong demand for AI servers, which are driven by ongoing digital transformation and heightened interest in generative AI applications. Its PowerEdge XE9680L AI-optimized server is very much in demand. Strong enterprise demand for AI-optimized servers is aiding the fiscal first quarter of 2026, Dell Technologies' AI-optimized server momentum saw an increase of $12.1 billion in orders. The flagship PowerEdge XE9680 experienced strong demand, contributing to the momentum in the AI space. The company shipped $1.8 billion worth of AI servers in the fiscal first quarter, and the AI server backlog remained healthy at $14.4 PowerEdge supports the NVIDIA Blackwell Ultra platform, including the upcoming NVIDIA HGX B300 NVL16, NVIDIA GB300 NVL72 and NVIDIA RTX PRO 6000 Blackwell Server Edition. The new Dell PowerEdge XE8712 server features the GB200 NVL4 platform and supports up to 144 NVIDIA B200 GPUs per Dell IR7000 rack. These liquid-cooled systems are tailored for AI model training and complex HPC simulations. Dell Technologies' innovative portfolio, expanding partner base and growing AI footprint are major growth drivers. For the second quarter of fiscal 2026, revenues are expected to be between $28.5 billion and $29.5 billion, with the mid-point of $29 billion suggesting 16% year-over-year Zacks Consensus Estimate for Dell Technologies' second-quarter fiscal 2026 revenues is pegged at $29.09 billion, suggesting growth of 16.23% year over earnings are expected to be $2.25 per share (+/- 10 cents), indicating 15% growth at the mid-point. The Zacks Consensus Estimate for earnings is pegged at $2.26 per share, which has increased by 5.1% in the past 30 days. This indicates year-over-year growth of 19.58%. Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote Dell Technologies benefits from rising demand for AI-optimized servers and an expanding partner network. Despite PC market challenges and macroeconomic headwinds, its innovation in AI infrastructure and positive earnings outlook support long-term stock currently sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Worthington Enterprises, Inc. (WOR) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-06-2025
- Business
- Yahoo
Is DELL's AI Server Strategy the Key to ISG Revenue Acceleration?
Dell Technologies DELL is benefiting from the strong demand for AI servers, which are driven by ongoing digital transformation and heightened interest in generative AI applications. Its PowerEdge XE9680L AI-optimized server is very much in demand. Strong enterprise demand for AI-optimized servers is aiding surge in AI server demand is clearly reflected in the company's financial performance. In the first quarter of fiscal 2026, Infrastructure Solutions Group (ISG) revenues increased 12% year over year to $10.31 billion. The upside can be attributed to servers and networking revenues of $6.32 billion, which grew 16% year over year, with demand strength across AI and traditional servers. In the fiscal first quarter of 2026, Dell Technologies' AI-optimized server momentum saw an increase of $12.1 billion in orders. The flagship PowerEdge XE9680 experienced strong demand, contributing to the momentum in the AI PowerEdge supports the NVIDIA Blackwell Ultra platform, including the upcoming NVIDIA HGX B300 NVL16, NVIDIA GB300 NVL72 and NVIDIA RTX PRO 6000 Blackwell Server Edition. The new Dell PowerEdge XE8712 server features the GB200 NVL4 platform and supports up to 144 NVIDIA B200 GPUs per Dell IR7000 rack. These liquid-cooled systems are tailored for AI model training and complex HPC company shipped $1.8 billion worth of AI servers in the fiscal first quarter, and the AI server backlog remained healthy at $14.4 billion. DELL is facing stiff competition in the server space against the likes of Hewlett Packard HPE and Super Micro Computer Packard is benefiting from robust demand for its AI-optimized servers, leading to significant revenue growth in its server segment. In the second quarter of fiscal 2025, Hewlett Packard server business grew 6% year over year, reaching $4.06 billion, mainly due to strong demand for its AI servers as well as growth in server systems. Super Micro Computer recently announced new air-cooled and liquid-cooled GPU solutions featuring AMD Instinct MI350 series GPUs, optimized for AI, cloud, and HPC workloads. These high-performance servers, built on Super Micro Computer's H14 platform with AMD EPYC 9005 CPUs, offer enhanced scalability, energy efficiency, and up to 288GB HBM3e per GPU. DELL's shares have lost 4.9% year to date, underperforming the broader Zacks Computer & Technology sector's return of 1.2%. Image Source: Zacks Investment Research DELL's stock is trading cheap, with a forward 12-month Price/Sales of 0.72X compared with the Computer & Technology sector's 6.33X. DELL has a Value Score of A. Image Source: Zacks Investment Research The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is pegged at $2.26 per share, which has increased 11.5% in the past 30 days. This indicates a year-over-year increase of 19.58%. Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote The consensus mark for 2025 earnings is pegged at $9.43 per share, which increased 6.91% in the past 30 days. This suggests 15.85% year-over-year currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
DELL Q1 Earnings Miss Estimates, Revenues Up Y/Y, Shares Fall
Dell Technologies DELL reported non-GAAP earnings of $1.55 per share in first-quarter fiscal 2026, missing the Zacks Consensus Estimate by 9.88%. The bottom line increased 17% year over increased 5% year over year to $23.38 billion and surpassed the consensus mark by 1.04%. The rise was primarily driven by growth across all its core segments. After the results were announced, shares of DELL plunged 0.84% in pre-market trading. Product revenues rose 9% year over year to $17.59 billion, beating the Zacks Consensus Estimate by 4.43%. Dell Technologies Inc. price-consensus-eps-surprise-chart | Dell Technologies Inc. Quote Services revenues declined 6% year over year to $5.77 billion missing the Zacks Consensus Estimate by 2.40%.Infrastructure Solutions Group (ISG) revenues increased 12% year over year to $10.31 upside can be attributed to servers and networking revenues of 6.32 billion, which grew 16% year over year, with demand strength across AI and traditional servers. Storage revenues increased 6% year over year to $3.99 the reported quarter, Dell Technologies' AI-optimized server momentum saw an increase of $12.1 billion in orders. The flagship PowerEdge XE9680 experienced strong demand, contributing to the momentum in the AI Technologies shipped $1.8 billion worth of AI servers in the fiscal first quarter, and the AI server backlog remained healthy at $14.4 revenues were $12.50 billion, up 5% year over year. Commercial Client revenues increased 9% year over year to $11.04 billion, while Consumer revenues fell 19% to $1.46 billion. The company's fiscal first-quarter non-GAAP gross profit increased 1% year over year to $5.05 billion. The gross margin contracted 80 basis points (bps) year over year to 21.6%.SG&A expenses fell 5% year over year to $2.96 billion. Research and development expenses increased 6% year over year to $808 million in the reported operating expenses declined 2% year over year to $3.39 billion. Operating expenses, as a percentage of revenues, contracted 110 bps on a year-over-year basis to 14.5%.The non-GAAP operating income was $1.66 billion, up 10% year over year. The operating margin expanded 30 bps year over year to 7.1%.The ISG segment's operating income jumped 36% year over year to $998 million. The CSG segment's operating income was $653 million, down 16% year over year. As of May 2, 2025, DELL had $7.70 billion in cash and cash equivalents compared with $3.63 billion as of Jan. 31, debt was $28.78 billion as of May 2, 2025, compared with $24.57 billion as of Jan. 31, company generated a cash flow from the operation of $2.8 billion. The adjusted free cash flow was $2.23 billion in first-quarter fiscal Technologies returned $2.4 billion of capital to its shareholders through $2 billion of share repurchases and paid out $396 million in dividends. For the second quarter of fiscal 2026, revenues are expected to be between $28.5 billion and $29.5 billion, with the mid-point of $29 billion suggesting 16% year-over-year Technologies anticipates 19% growth at the midpoint for the combined ISG and CSG, with ISG growing significantly and CSG up to a low-to-mid single earnings are expected to be $2.25 per share (+/- 10 cents), indicating 15% growth at the fiscal 2026, revenues are expected to be between $101 billion and $105 billion, with the mid-point of $103 billion indicating 8% year-over-year Technologies anticipates 10% growth at the mid-point for ISG and CSG combined, with ISG expected to increase in the high teens and CSG likely to grow in the low to mid-single digits. Non-GAAP earnings are expected to be $9.40 per share (+/- 25 cents), up 15% at the midpoint. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Dell Technologies has a Zacks Rank #3 (Hold) at APH, Juniper Networks JNPR and Upwork UPWK are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. APH, JNPR and UPWK sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks shares have gained 28.1% in the year-to-date period. The Zacks Consensus Estimate for APH's full-year 2025 earnings is pegged at $2.66 per share, up by 8 cents over the past 30 days, suggesting growth of 40.74% from the year-ago quarter's reported shares have lost 4% in the year-to-date period. The Zacks Consensus Estimate for JNPR's full-year fiscal 2025 earnings has been revised upward to $2.09 in the past 30 days, suggesting year-over-year growth of 21.51%.UPWK shares have lost 4.5% in the year-to-date period. The Zacks Consensus Estimate for UPWK's full-year 2025 earnings is pegged at $1.14 per share, implying a rise of 9.62% from the year-ago quarter's levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report Upwork Inc. (UPWK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
