Offshore

⁠Wall St Engine
HERE'S WHAT ANALYSTS HAVE TO SAY AFTER $DELL EARNINGS:

BofA (Buy, PT: $155)
"Dell reported F1Q revs beating expectations, but EPS came in at the low-end of guide due to modest tariff impacts to CSG margins and slightly weaker growth from ISS. F2Q guide far exceeded Street expectations due to an incremental $5bn in revs from AI servers. At the highest level, we see the potential for Dell to deliver significantly higher AI server revs over the next two years (>$30bn) with strong upside to EPS (>$3). Reiterate Buy as we are still in the early stages of AI adoption, margins from mix, and tailwind from upcoming PC refresh and longer-term AI PC adoption."

Raymond James (Outperform, PT: $150)
"We maintain our Outperform rating on DELL following its F1Q26 report that reflected a beat on the top-line, but non-GAAP EPS that missed expectations. Shares were up 2% after-hours with a higher FY26 EPS outlook. For F2Q26, Dell guided AI server revenue of ~$7B, which was nearly 3x our prior estimate and AI server backlog more than tripled to $14.1B. Despite this, the full-year FY26 revenue outlook was unchanged, and implies AI contributions drop off sharply in F2H26. Additionally, while F2Q26 revenue guidance was ~18% higher than our prior estimate, our updated model reflects non-GAAP EBIT largely unchanged vs our prior estimate, highlighting the continued margin challenges that AI servers present in the immediate term."

Morgan Stanley (Overweight, PT: $135)
"Raising our estimates slightly as AI server strength helps to offset some minor enterprise caution; Remain OW. Outside of seasonality dynamics – including a stronger than expected F2Q, though at the expense of margins – our FY26 estimates don't change materially post-earnings... AI momentum is accelerating, DELL is gaining share in traditional enterprise markets... outperformance will need to be driven moreso by positive estimate revisions than multiple expansion... To be clear, we remain OW because we see a path to positive EPS revisions... However, to get even more bullish we'd need to see clear emergence of AI attach, which we just believe is longer tailed."

JPMorgan (Overweight, PT: $125)
"AI server demand and orders in F1Q as well as greater than typical deployment expectations for F2Q were the bright spot in an otherwise subdued outlook... AI backlog expanded to $14.4 bn... combination of readiness from multiple customers and better supply visibility... management remained hesitant to point to material upside to full-year expectations... softness in the macro impacting the higher margin product lines remains a source of concern in the near-term... Reiterate OW with a long-term view."

Goldman Sachs (Buy, PT: $130)
"AI server momentum and buybacks offset EPS miss & F2026 EBIT outlook cut on traditional servers, storage, and PCs... DELL delivering a record $12.1 bn of AI server orders... ~$7 bn should translate into revenue in F2Q26E... ISG margins missed but primarily related to mix, not AI servers... CSG EBIT in-line and outlook better-than-feared... record $1.98 bn of share buybacks... raised F2026 EPS guidance by $0.10 to $9.15–$9.65."

Barclays (Equalweight, PT: $123)
"DELL continues to perform well in AI servers, but orders are translating to revenues at an uneven pace... concerned that these Blackwell rack scale systems will pressure GM percentage... expecting AI server market to become increasingly competitive... traditional servers and storage are softer next quarter, including weak PC, which adds uncertainty for F2H."
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