Evercore Expects Dell to Beat $31.4B Revenue, $3.52 EPS and Drive AI Growth
Evercore added Dell to its Tactical Outperform list ahead of earnings, forecasting revenue above $31.4B and EPS exceeding $3.52 on strong PC, server and AI compute demand. It cited $12.3B in Q3 AI orders, an $18.4B backlog, memory pricing tailwinds and a 100bp client share gain.
1. Analyst Upgrades Dell to Outperform
Evercore moved Dell to its Tactical Outperform list ahead of Q1 earnings, projecting revenue to surpass $31.4B and EPS to exceed $3.52, driven by robust demand across traditional hardware and AI compute.
2. AI Server Demand and Backlog
The firm highlighted $12.3B in AI orders and an $18.4B backlog at the end of fiscal Q3, forecasting January-quarter AI server revenue above $9B and fiscal 2026 AI sales reaching $25B.
3. Memory Pricing Tailwind and Margin Defense
Inflation in memory costs created a near-term tailwind as customers accelerated purchases ahead of ASP increases, prompting Dell to adopt dynamic pricing actions and shorter quote windows to protect margins.
4. Market Share Gains and Future Guidance
Early data show Dell gained roughly 100 basis points of PC market share in Q4, its first increase in over three years, while management is set to outline high-single-digit revenue and low-to-mid-teens EPS growth into FY27 supported by operating leverage and share repurchases.