Dell Technologies was added to Evercore ISI’s tactical outperform list ahead of its upcoming quarterly earnings release, reflecting expectations for continued momentum in AI-related revenue and potential upward guidance revisions.
The brokerage firm projects Dell’s revenue for the quarter at $44.9 billion, representing a 51% year-over-year increase, while earnings per share are estimated at $4.89. Evercore also anticipates Dell may raise its guidance for fiscal 2027, citing robust demand for AI infrastructure.
Dell’s AI segment performance remains a key driver, with the company reporting $24.4 billion in AI orders and $16.1 billion in AI server revenue in the prior quarter. The firm also maintained a record AI backlog of $51.3 billion, underscoring sustained demand for its products.
Evercore expects Dell’s storage segment to post approximately 10% year-over-year revenue growth, while the Client Solutions Group should benefit from an enterprise PC refresh cycle and higher average selling prices. However, operating margins in this segment are projected to decline sequentially.
Supply chain constraints continue to shape Dell’s near-term outlook, with component shortages—particularly in memory, CPUs, and optical and hard disk drive components—limiting growth. Evercore notes that while demand for AI infrastructure remains strong, delivery capacity remains the primary bottleneck. The brokerage expects supply pressures to persist through 2027, with conditions tighter than in 2026.
