Dell Technologies Analyst Update: What Sales Professionals Need to Know
Dell Technologies (DELL) remains a strong contender in the AI server market, according to recent analyst projections. Despite a slight dip in stock price to $138.40, Dell’s growth prospects look promising, especially as the company approaches its fiscal second-quarter 2026 earnings report scheduled for August 28.
AI Server Momentum Driving Growth
Analyst Wamsi Mohan expects Dell to deliver revenue of $29.4 billion and earnings per share (EPS) of $2.35 in the upcoming quarter, both at the high end of guidance. A key driver behind these figures is the AI server segment, which is projected to generate $7.3 billion in revenue and $5 billion in orders, leaving a substantial backlog of $12.1 billion going into the next quarter.
For the full fiscal year 2026, AI server sales are forecasted to reach $20.7 billion, well above Dell’s current guidance of $15 billion+. This strong momentum may prompt Dell to raise its AI server revenue target to at least $18 billion, with potential upside to $20 billion or more in the next earnings update.
Infrastructure Solutions Group (ISG) and Margins
- ISG revenue is expected to grow 36% year-over-year, primarily driven by AI server shipments.
- ISG operating margins are projected at 9.3% for the quarter, improving sequentially throughout fiscal 2026.
This segment’s growth and margin expansion are critical for Dell’s overall profitability and present clear opportunities for sales teams to focus on AI infrastructure solutions.
Revenue and Earnings Guidance
Looking ahead, Dell’s third-quarter revenue guidance is forecasted between $27 billion and $28 billion, with EPS expected at $2.55 ± 10 cents. For the full fiscal year 2026, EPS is projected at $9.50 ± 20 cents on revenues ranging from $103 billion to $107 billion.
On the Client Solutions Group (CSG) front, revenue is expected to hit around $13 billion, a 5% year-over-year increase. This growth is supported by an 8% rise in commercial PC sales, driven in part by pre-tariff demand pull-ins.
Long-Term Earnings Outlook
Mohan’s outlook extends to 2030, with earnings per share potentially exceeding $19. This implies a compound annual growth rate (CAGR) of 15% from 2025 to 2030, fueled by:
- AI server growth
- Margin improvements from a favorable product mix
- Adoption of AI-enabled PCs
For sales teams, this means focusing on AI-related products and solutions will likely be a key driver of Dell’s revenue and profit growth over the next several years.
What This Means for Sales Professionals
With Dell’s AI server business showing strong momentum and expected to surpass initial revenue targets, sales professionals should prioritize AI infrastructure offerings when engaging with clients. The expanding backlog and improving margins indicate robust demand and profitability in this segment.
Additionally, growth in the commercial PC segment suggests opportunities for client expansion in office and business solutions, especially with AI capabilities becoming more integrated into endpoint devices.
For those interested in expanding their AI knowledge to better position themselves in sales conversations, exploring targeted AI courses can be beneficial. You can find relevant learning resources at Complete AI Training.
Staying informed about Dell’s product developments and financial outlook provides a strong foundation to tailor your sales approach and align with market demand.
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