Dell’s Improved Earnings and AI Momentum Prompt Analyst Price Target Hike

Dell Technologies Inc. (NYSE:DELL) is one of the AI Stocks Making Headlines on Wall Street. On November 26, Goldman Sachs raised its price target on the stock to $185 from $175 while maintaining a “Buy” rating. The price target raise follows Dell’s improved fiscal 2026 earnings guidance, stronger AI server demand, and improved margin trajectory.

Firm analysts noted how Dell raised its F2026 EPS outlook to $9.82-$10.02 driven by stronger-than-expected EBIT growth. Its Infrastructure Solutions Group (ISG) segment also beat and improved margins, while AI server demand also improved across Tier 2 CSPs, as well as higher-margin neocloud and sovereign customers.

“AI server demand improved across Tier 2 CSPs and higher-margin neocloud and sovereign customers, with (a) AI server orders accelerating to $12.3 bn (v. $5.6 bn in F2Q26); and (b) AI server margins improving sequentially.”

Dell has improved its F2026 ISG revenue outlook to the mid-to-high 30s% range and raised its F26 AI server outlook by $5billion to $25billion. The company also anticipates ISG margins to improve further, driven by continued traditional server refresh and a richer mix of its Dell-IP storage portfolio.

CSG revenue and margins missed due to consumer revenue weakness (-7% yoy), offsetting commercial revenue growth (+5% yoy). However, analysts noted how DELL anticipates to continue benefitting from the ongoing PC refresh cycle and Windows 11 upgrades.

Goldman Sachs also highlighted that DELL has reassured investors about commodity inflation, noting it can recover two-thirds of cost increases within 90 days with its strong supply-chain leverage.

Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide.

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