Evercore Expects Dell to Exceed $31.4B Revenue, Projects $25B AI Server Sales
Evercore added Dell Technologies to its Tactical Outperform list before January-quarter results, forecasting revenue above $31.4B and EPS above $3.52 on strong PC, server and AI compute demand. It noted $12.3B in AI orders, an $18.4B backlog, memory pricing tailwinds and projects $25B in fiscal-2026 AI server revenue.
1. Tactical Outperform Rating and Price Target
Evercore added Dell Technologies to its Tactical Outperform list ahead of the January-quarter earnings and set a $160 price target, maintaining its Outperform rating based on updated demand forecasts.
2. Revenue and EPS Projections
The broker anticipates January-quarter revenue above $31.4 billion and EPS above $3.52, driven by robust demand in PCs, traditional servers and AI compute workloads.
3. AI Server Orders and Backlog
Dell exited the fiscal third quarter with $12.3 billion in AI server orders and an $18.4 billion backlog, and Evercore projects fiscal 2026 AI server revenue of $25 billion supported by Rubin ramp-up.
4. Memory Pricing Tailwinds and Margin Outlook
Evercore cited favorable memory pricing trends as a near-term tailwind, though it expects a roughly 90 basis point sequential gross margin decline to about 20.2% as Dell honors prior orders, with dynamic pricing measures to protect future margins.