DELL Stock Today: February 26 — AI Server Sales Seen Doubling, Shares Jump
Dell stock rallied after hours as shares of DELL jumped about 10% on a stronger AI outlook and richer capital returns. Management guided AI server revenue to roughly $50 billion in FY2027, lifted full-year revenue to $138–$142 billion, and set EPS at $12.90, both above consensus. A 20% dividend hike and a new $10 billion share buyback add support. With demand from hyperscalers and enterprise customers growing, investors are reassessing Dell stock’s earnings power for 2026 and beyond.
Why Dell stock jumped after hours
Dell projected AI server revenue to double to about $50 billion in FY2027, signaling strong demand from cloud and enterprise buyers. It also raised FY revenue to $138–$142 billion and EPS to $12.90, topping estimates and fueling a sharp after-hours reaction. The update underscores AI-driven mix shift and backlog health source.
Management announced a 20% dividend hike and a new $10 billion share buyback, enhancing per-share growth and downside support. Bigger capital returns often tighten the float and can steady valuations during volatility. Combined with higher guidance, these steps improve confidence in cash generation and long-term returns for Dell stock holders as AI infrastructure scales globally.
AI server outlook and what it means for Dell stock
Dell cited over 4,000 AI server customers, including xAI and CoreWeave, highlighting expanding use cases and sustained hyperscaler capex. The plan to reach roughly $50 billion in AI server sales by FY2027 shows a path to scale and recurring upgrades. That magnitude supports multi-year revenue visibility source.
High-bandwidth memory and key components remain tight, lifting input costs. Dell has implemented price increases, which helps offset inflation but can pressure near-term margins. As AI server volumes grow, scale and mix should aid profitability. The bigger opportunity is share capture across hyperscalers and enterprises, which could sustain momentum in Dell stock even if gross margins fluctuate quarter to quarter.
How to trade Dell stock now
The Street skews positive: 26 Buy, 7 Hold, 1 Sell, with a 3.00 consensus rating. Meyka Stock Grade stands at 75.3 (B+), suggesting BUY. On trailing figures, the P/E is 16.3, with price-to-sales near 0.79. The new EPS outlook of $12.90 frames healthier earnings power, which may support re-rating if execution and AI mix trends hold.
RSI near 51.84 and ADX at 13.93 indicate a weak trend, while ATR of 5.61 flags active swings. Today’s range printed $120.31–$126.00. The Bollinger mid-band sits near $119.36, with the upper band around $125.98. Watch $126 as near-term resistance and $119–$120 as first support. The 52-week high is $168.08, a longer-term upside marker for Dell stock.
What to watch on Dell stock in 2026
Key checkpoints include AI server run-rate versus the FY2027 $50 billion target, order momentum from hyperscalers and enterprises, and conversion of pipeline to revenue. Monitor the full-year revenue corridor of $138–$142 billion and progress on the $12.90 EPS goal. Customer additions beyond xAI and CoreWeave could confirm breadth and durability of Dell’s AI demand wave.
Track deployment of the $10 billion buyback and cadence following the 20% dividend hike. Core health indicators include payout ratio near 27%, interest coverage around 6.09, and net debt to EBITDA near 2.62. A current ratio of 0.85 and improving free cash flow conversion will matter for sustaining returns and supporting sentiment in Dell stock.
Final Thoughts
For investors, the message is clear: AI infrastructure is shifting Dell’s growth profile. Management sees AI server revenue doubling to about $50 billion by FY2027, while full-year revenue of $138–$142 billion and EPS of $12.90 lift the earnings bar. A 20% dividend hike and a $10 billion buyback strengthen total return. Near term, component inflation and pricing actions can sway margins, and volatility remains high around news and guidance. Focus on execution against the AI server roadmap, order flow from large customers, and the pace of capital returns. If these pillars hold, Dell stock can justify a higher earnings base and support a constructive long-term view.
FAQs
Why did Dell stock spike after hours today?
Shares rose about 10% after hours as Dell projected AI server revenue doubling to roughly $50 billion in FY2027, raised full-year guidance to $138–$142 billion with EPS at $12.90, and boosted capital returns with a 20% dividend hike and a new $10 billion buyback. Investors reacted to stronger earnings power and clearer AI demand.
How significant is Dell’s AI server revenue outlook?
The company targets about $50 billion in AI server revenue by FY2027, roughly double current levels. This points to multi-year demand from hyperscalers and enterprises, a larger mix of high-spec systems, and potential operating leverage as volumes scale. It is a central driver behind the improved revenue and EPS guidance and interest in Dell stock.
What did Dell change about capital returns?
Management raised the dividend by 20% and authorized a new $10 billion share buyback. The combination improves total shareholder return, supports EPS by reducing share count over time, and signals confidence in cash generation. Execution and buyback pace will be key for sustaining sentiment around Dell stock through market swings.
Is Dell stock expensive after the jump?
On trailing numbers, the P/E is about 16.3 and price-to-sales is near 0.79, both reasonable for a company guiding higher on AI. Street ratings skew Buy, and Meyka’s grade is B+ (75.3). Valuation could stretch if margins lag, but stronger AI mix and capital returns may support further re-rating.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.