Dell Eyes 7% Revenue Growth to $35.7B as Stock Rallies 17%
DELL•Dell shares have climbed 144% year-to-date and surged over 25% since Lenovo’s March quarter results, including a 17% jump on Friday. The company is forecast to post fiscal Q1 revenue of $35.7 billion, up 7%, and adjusted EPS of $2.96, a 91% increase.
1. Stock Performance Surge
Dell shares have gained 144% year-to-date and rallied 17% on Friday, marking its largest one-day gain in three months, with an additional 3.4% rise on Tuesday following the Memorial Day holiday.
2. Lenovo’s PC Market Recovery
Lenovo reported a 27% revenue increase to $21.6 billion in its March quarter and net income of $521 million, its strongest growth in five years, signaling a revival in PC demand that has lifted peers like Dell.
3. Upcoming Q1 Expectations
Analysts expect Dell’s fiscal first-quarter revenue to reach $35.7 billion, a 7% increase, and adjusted EPS of $2.96, up 91%, the steepest profit growth since at least 2018, with 18 of 27 analysts rating the stock ‘Buy.’
4. Super Micro Controversy
Charges against Super Micro executives for illicit Nvidia chip exports have raised the prospect of customers shifting enterprise server demand to Dell, potentially bolstering its AI server and enterprise sales.
