Wall St Engine
Truist Securities Downgrades $ABNB to Sell from Hold, Lowers PT to $106 from $112
Analyst comments: "ABNB (Sell): Our 2025E Adj EBITDA projection goes to $4,149M from $4,241M and EPS projection goes to $4.23 from $4.22. Our 2026E Adj EBITDA projection goes to $4,542M from $4,658M and EPS projection goes to $4.95 from $4.80. Our price target of $106 (down from $112) is based on a blended 20.0x (unchanged) multiple on our 2026E Adj EBITDA. ABNB is currently trading at 29.9x/25.0x our 2025E/2026E Adj EBITDA estimates."
Analyst: C. Patrick Scholes
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Truist Securities Downgrades $ABNB to Sell from Hold, Lowers PT to $106 from $112
Analyst comments: "ABNB (Sell): Our 2025E Adj EBITDA projection goes to $4,149M from $4,241M and EPS projection goes to $4.23 from $4.22. Our 2026E Adj EBITDA projection goes to $4,542M from $4,658M and EPS projection goes to $4.95 from $4.80. Our price target of $106 (down from $112) is based on a blended 20.0x (unchanged) multiple on our 2026E Adj EBITDA. ABNB is currently trading at 29.9x/25.0x our 2025E/2026E Adj EBITDA estimates."
Analyst: C. Patrick Scholes
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Wall St Engine
HERE'S WHAT ANALYSTS HAVE TO SAY AFTER $ULTA EARNINGS:
JPMorgan (Overweight, PT: $525)
"...ULTA's results were well-above our raised expectations... comp (2.9% vs. 0.7%e)... op margin 14.1% vs. 12.4%e... 15% EPS upside... ULTA gained share in mass and prestige... profitability indicates better execution and a higher focus on returns under CEO Kecia Steelman... both factors support multiple expansion..."
Canaccord Genuity (Buy, PT: $542)
"...sales up +4.5% YOY... comps +2.9% vs. +0.2% Street... EBIT margin 14.2% vs. 12.6%... EPS of $6.70 vs. $5.81... in-store execution, promo management, and innovation driving results... fragrance led growth... share gains in both mass and prestige... guidance raised... strategy is starting to bear fruit..."
Morgan Stanley (Overweight, PT: $550)
"...risk/reward is positive... Q1 comps +2.9% vs. Street +0.4%... effectiveness of ULTA's Unleashed plan (execution, new brands, promo/marketing)... 2H25 comp outlook remains dynamic... current valuation ~18x FY2 P/E... undemanding for a business returning to mid-teens EBIT margin..."
Evercore ISI (Outperform, PT: $490)
"...SSS +2.9% vs. flat Street... accelerating from +1.5% in Q4... competitors like Sephora/KSS slowed... share loss cycle appears to be reversing... expect upside to ‘25/’26 EPS... raise PT on improving SSS trends, square footage growth, and low tariff risk..."
DA Davidson (Buy, PT: $485)
"...lapped Sephora store rollout... now 3 quarters of accelerating comps... this quarter’s +2.9% comp well ahead of expectations... ULTA taking back share... only big box retailer in our coverage to deliver beat/beat/raise in Q1..."
Raymond James (Outperform, PT: $500)
"...Q1 upside allows for FY outlook raise... share gains in mass/prestige and e-com +10% y/y... comp guide now flat to +1.5%... management outlook is prudent... promo efficiency improving, shrink headwinds easing... Sephora/KSS pressure fading..."
Telsey Advisory Group (Outperform, PT: $520)
"...strong start to fiscal year... revenue, margins, EPS beat expectations... Ulta gained share after quarters of elevated competition... CEO Kecia Steelman showing progress on Unleashed plan... member growth, e-commerce +10%... FY25 outlook raised... momentum encouraging despite back-half uncertainty..."
Goldman Sachs (Buy, PT: $473)
"...1Q comps above expectations, accelerating sequentially... gained share in mass and prestige... early results from Unleashed plan... guidance raised, though op margin unchanged... reiterate Buy..."
Citi (Neutral, PT: $450)
"...EPS $6.70 vs. cons $5.81... comps +2.9% vs. flat... prestige makeup flat, better than 4Q... F25 guide only raised ~$0.20... current momentum positive but valuation balanced at 19x our above-cons EPS..."
BofA Securities (Neutral, PT: $455)
"...EPS of $6.70 vs. cons $5.85... guidance raised modestly... sales deceleration implied in 2H... raising PT on early progress but remain Neutral due to reinvestment-related margin pressure..."
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HERE'S WHAT ANALYSTS HAVE TO SAY AFTER $ULTA EARNINGS:
JPMorgan (Overweight, PT: $525)
"...ULTA's results were well-above our raised expectations... comp (2.9% vs. 0.7%e)... op margin 14.1% vs. 12.4%e... 15% EPS upside... ULTA gained share in mass and prestige... profitability indicates better execution and a higher focus on returns under CEO Kecia Steelman... both factors support multiple expansion..."
Canaccord Genuity (Buy, PT: $542)
"...sales up +4.5% YOY... comps +2.9% vs. +0.2% Street... EBIT margin 14.2% vs. 12.6%... EPS of $6.70 vs. $5.81... in-store execution, promo management, and innovation driving results... fragrance led growth... share gains in both mass and prestige... guidance raised... strategy is starting to bear fruit..."
Morgan Stanley (Overweight, PT: $550)
"...risk/reward is positive... Q1 comps +2.9% vs. Street +0.4%... effectiveness of ULTA's Unleashed plan (execution, new brands, promo/marketing)... 2H25 comp outlook remains dynamic... current valuation ~18x FY2 P/E... undemanding for a business returning to mid-teens EBIT margin..."
Evercore ISI (Outperform, PT: $490)
"...SSS +2.9% vs. flat Street... accelerating from +1.5% in Q4... competitors like Sephora/KSS slowed... share loss cycle appears to be reversing... expect upside to ‘25/’26 EPS... raise PT on improving SSS trends, square footage growth, and low tariff risk..."
DA Davidson (Buy, PT: $485)
"...lapped Sephora store rollout... now 3 quarters of accelerating comps... this quarter’s +2.9% comp well ahead of expectations... ULTA taking back share... only big box retailer in our coverage to deliver beat/beat/raise in Q1..."
Raymond James (Outperform, PT: $500)
"...Q1 upside allows for FY outlook raise... share gains in mass/prestige and e-com +10% y/y... comp guide now flat to +1.5%... management outlook is prudent... promo efficiency improving, shrink headwinds easing... Sephora/KSS pressure fading..."
Telsey Advisory Group (Outperform, PT: $520)
"...strong start to fiscal year... revenue, margins, EPS beat expectations... Ulta gained share after quarters of elevated competition... CEO Kecia Steelman showing progress on Unleashed plan... member growth, e-commerce +10%... FY25 outlook raised... momentum encouraging despite back-half uncertainty..."
Goldman Sachs (Buy, PT: $473)
"...1Q comps above expectations, accelerating sequentially... gained share in mass and prestige... early results from Unleashed plan... guidance raised, though op margin unchanged... reiterate Buy..."
Citi (Neutral, PT: $450)
"...EPS $6.70 vs. cons $5.81... comps +2.9% vs. flat... prestige makeup flat, better than 4Q... F25 guide only raised ~$0.20... current momentum positive but valuation balanced at 19x our above-cons EPS..."
BofA Securities (Neutral, PT: $455)
"...EPS of $6.70 vs. cons $5.85... guidance raised modestly... sales deceleration implied in 2H... raising PT on early progress but remain Neutral due to reinvestment-related margin pressure..."
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Wall St Engine
HERE'S WHAT ANALYSTS HAVE TO SAY AFTER $MRVL EARNINGS:
Rosenblatt (Buy, PT: $124)
"Marvell delivered a slight beat and raise... strong AI Data Center revenue and recovery in Enterprise Networking/Carrier Infrastructure and Consumer... engaged with a current customer on the follow-on generation of this XPU... secured 3nm wafer and advanced packaging capacity for 2026... custom ASIC TAM is expanding quickly... We believe Marvell has maintained its position and will continue to grow this business."
Oppenheimer (Outperform, PT: $95)
"MRVL reported upside F1Q results and F2Q outlook... multi-generational AWS relationship intact... confident in Trainium2 ramp into CY26 followed by Trainium3... 3nm supply already secured... MSFT Maia accelerator ramping CY26... AI now >50% of DC, approaching 40% of total revs... expect more clarity on projects/timeline at June 17 custom ASIC event."
BofA Securities (Buy, PT: $72)
"...affirmation of participation in 3nm Amazon custom-chip program for CY26... multiple custom chip programs with Microsoft... limited EPS revisions but pipeline affirmation improves confidence in 20%+ sales growth... model 50%+ YoY growth in MRVL ASIC business to ~$3bn in CY26... reiterate Buy."
Evercore ISI (Outperform, PT: $133)
"Beat and Raise AprQ print... reiterated multi-generational programs with Amazon and Microsoft... MRVL has lowest PE and highest EPS growth in our AI coverage... Street not appreciating multi-sourcing strategy... expect PE to converge with peers... we are buyers."
Raymond James (Outperform, PT: $90)
"...engaged with AWS on follow-on custom AI accelerator... secured 3nm capacity for 2026 ramp... MSFT custom ASIC engagement on track... Optical segment strong... Data Center growth (76% y/y) better than peers... valuation attractive at 16x FY27 P/E."
KeyBanc (Overweight, PT: $90)
"...Data Center grew 76% y/y on AWS Trainium 2... MRVL expects AI ASIC revenue at AWS to grow in FY26/FY27... secured design wins with MSFT Maia 200 and engaged on Maia 300... still see multiple growth paths... hosting virtual AI event 6/17."
Wolfe Research (Outperform, PT: $90)
"...Mgmt. confident in custom biz growth through FY26... acknowledged customer 'pursuing multiple paths'... investors questioning revenue sustainability and applicable multiple... AI business must prove sustainability... key catalyst: June 17 custom AI event."
Barclays (Overweight, PT: $80)
"...'3nm' finally confirmed with AMZN... MSFT follow-on XPU progressing... Optical lighter in July—possible share loss... buying back stock, more ammo from Auto sale... show-me story on ASIC, but like risk/reward at ~$60."
Cantor Fitzgerald (Neutral, PT: $60)
"...modest beat and raise... focus on AI Custom Silicon... well-positioned at AMZN Trainium 2/Maia 200 and next-gen 3nm ramp for 2026... noted 'potential' customer diversification... concerned about Custom Silicon stickiness... look forward to June 17 AI event."
Morgan Stanley (Equalweight, PT: $73)
"...Trainium 2 reset behind us... sequential progression solid... optical more defensible than ASIC... sentiment remains cynical... PT based on 32x CY26 MW EPS... prefer NVDA, AVGO... maintain Equalweight."
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HERE'S WHAT ANALYSTS HAVE TO SAY AFTER $MRVL EARNINGS:
Rosenblatt (Buy, PT: $124)
"Marvell delivered a slight beat and raise... strong AI Data Center revenue and recovery in Enterprise Networking/Carrier Infrastructure and Consumer... engaged with a current customer on the follow-on generation of this XPU... secured 3nm wafer and advanced packaging capacity for 2026... custom ASIC TAM is expanding quickly... We believe Marvell has maintained its position and will continue to grow this business."
Oppenheimer (Outperform, PT: $95)
"MRVL reported upside F1Q results and F2Q outlook... multi-generational AWS relationship intact... confident in Trainium2 ramp into CY26 followed by Trainium3... 3nm supply already secured... MSFT Maia accelerator ramping CY26... AI now >50% of DC, approaching 40% of total revs... expect more clarity on projects/timeline at June 17 custom ASIC event."
BofA Securities (Buy, PT: $72)
"...affirmation of participation in 3nm Amazon custom-chip program for CY26... multiple custom chip programs with Microsoft... limited EPS revisions but pipeline affirmation improves confidence in 20%+ sales growth... model 50%+ YoY growth in MRVL ASIC business to ~$3bn in CY26... reiterate Buy."
Evercore ISI (Outperform, PT: $133)
"Beat and Raise AprQ print... reiterated multi-generational programs with Amazon and Microsoft... MRVL has lowest PE and highest EPS growth in our AI coverage... Street not appreciating multi-sourcing strategy... expect PE to converge with peers... we are buyers."
Raymond James (Outperform, PT: $90)
"...engaged with AWS on follow-on custom AI accelerator... secured 3nm capacity for 2026 ramp... MSFT custom ASIC engagement on track... Optical segment strong... Data Center growth (76% y/y) better than peers... valuation attractive at 16x FY27 P/E."
KeyBanc (Overweight, PT: $90)
"...Data Center grew 76% y/y on AWS Trainium 2... MRVL expects AI ASIC revenue at AWS to grow in FY26/FY27... secured design wins with MSFT Maia 200 and engaged on Maia 300... still see multiple growth paths... hosting virtual AI event 6/17."
Wolfe Research (Outperform, PT: $90)
"...Mgmt. confident in custom biz growth through FY26... acknowledged customer 'pursuing multiple paths'... investors questioning revenue sustainability and applicable multiple... AI business must prove sustainability... key catalyst: June 17 custom AI event."
Barclays (Overweight, PT: $80)
"...'3nm' finally confirmed with AMZN... MSFT follow-on XPU progressing... Optical lighter in July—possible share loss... buying back stock, more ammo from Auto sale... show-me story on ASIC, but like risk/reward at ~$60."
Cantor Fitzgerald (Neutral, PT: $60)
"...modest beat and raise... focus on AI Custom Silicon... well-positioned at AMZN Trainium 2/Maia 200 and next-gen 3nm ramp for 2026... noted 'potential' customer diversification... concerned about Custom Silicon stickiness... look forward to June 17 AI event."
Morgan Stanley (Equalweight, PT: $73)
"...Trainium 2 reset behind us... sequential progression solid... optical more defensible than ASIC... sentiment remains cynical... PT based on 32x CY26 MW EPS... prefer NVDA, AVGO... maintain Equalweight."
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Wall St Engine
Citi Lowers PT on $GAP to $30 from $33 - Buy
Analyst comments: "1Q EPS of $0.51 beat consensus of $0.46 driven by stronger sales and lower SG&A. Gap brand comps at +5% were solid but disappointed high market expectations (high-single-digit to low-double-digit). Old Navy comps at +3% beat consensus and market expectations. Because Old Navy is a much bigger contributor to sales and profitability versus Gap, this is not a bad tradeoff.
Management reiterated FY25 guidance (excluding tariffs) of $2.30–$2.40, but tariffs are expected to be a $100–150 million headwind to second-half COGS (post-mitigation), implying FY25 guidance with tariffs of $2.00–$2.20. We believe tariff assumptions include conservatism (only 55% mitigation assumed, no pricing offset).
Overall, Gap is executing very well, delivering topline consistency at Old Navy and Gap (and management said 2Q is off to a good start), gross margin upside, and showing cost discipline. While we expect Gap to be in the penalty box near-term on the Gap brand falling short of market expectations and tariff guidance, we believe risk/reward is especially attractive on the pre-market stock weakness."
Analyst: Paul Lejuez
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Citi Lowers PT on $GAP to $30 from $33 - Buy
Analyst comments: "1Q EPS of $0.51 beat consensus of $0.46 driven by stronger sales and lower SG&A. Gap brand comps at +5% were solid but disappointed high market expectations (high-single-digit to low-double-digit). Old Navy comps at +3% beat consensus and market expectations. Because Old Navy is a much bigger contributor to sales and profitability versus Gap, this is not a bad tradeoff.
Management reiterated FY25 guidance (excluding tariffs) of $2.30–$2.40, but tariffs are expected to be a $100–150 million headwind to second-half COGS (post-mitigation), implying FY25 guidance with tariffs of $2.00–$2.20. We believe tariff assumptions include conservatism (only 55% mitigation assumed, no pricing offset).
Overall, Gap is executing very well, delivering topline consistency at Old Navy and Gap (and management said 2Q is off to a good start), gross margin upside, and showing cost discipline. While we expect Gap to be in the penalty box near-term on the Gap brand falling short of market expectations and tariff guidance, we believe risk/reward is especially attractive on the pre-market stock weakness."
Analyst: Paul Lejuez
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Wall St Engine
HERE'S WHAT ANALYSTS HAVE TO SAY AFTER $COST EARNINGS:
Bernstein SocGen (Outperform, PT: $1,153)
"Costco reported 3Q25 results and managed to beat consensus expectations – with an 8% comp ex gas & FX – despite its well telegraphed monthly sales results. Gross and EBIT margins also came in slightly ahead of expectations while EPS of $4.28 was a 5c beat. We continue to believe that COST is the highest quality company in our coverage, with multiple decades of global warehouse expansion opportunities ahead. At 53.5x P/E, however, the stock is priced for perfection. A deceleration in the strong HSD comp sales growth trend could introduce downside risk and provide a better entry point for investors."
Raymond James (Outperform, PT: $1,070)
"We reaffirm our Outperform rating and maintain our $1,070 price target following Costco’s F3Q25 results. The company delivered another solid quarter, with adjusted EPS ahead of expectations and strong comp growth of 8.0% y/y (ex-gas and FX), led by healthy traffic and resilient average ticket. Membership trends remain robust, with executive penetration and digital engagement supporting deeper share of wallet and strong renewal rates. While valuation remains elevated (COST +25% over the past 12 months vs. S&P 500 +12%), we believe the premium is warranted given Costco’s consistent execution, defensive category mix, and strong member loyalty. Looking ahead, we continue to model ~25 net new annual openings, broad-based share gains across food and non-food, and ample flexibility for reinvestment and capital returns. Costco’s supply chain capabilities, strong vendor relationships, and pricing discipline leave it better positioned than most to absorb tariff-related pressures. Importantly, in a potentially more inflationary environment, the club model’s value proposition and scale advantage could become even more compelling to consumers. COST remains a core long-term compounder in any macro backdrop."
Loop Capital (Buy, PT: $1,110)
"We are maintaining our Buy rating and trimming our price target on Costco from $1,115 to $1,110 as we build a bit of near-term cushion into our estimates given macro uncertainties. Our PT is driven by our discounted NOPAT model. Core SSS beat consensus for each period of the quarter. MFI grew 10.4% in the quarter, right in line with our estimate. Costco is slow to pass on cost increases, and we think this is leading to market share growth. These opportunities should increase as inflation spreads on tariff-impacted products. Over time, Costco capitulates to market pricing trends to capture its normal margin levels. Our rating remains Buy on Costco, as we see outsized value driving traffic to clubs. Our F25 EPS estimate of $17.96 is 16 cents below consensus as we expect COST to eat some inflation in the near-term."
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HERE'S WHAT ANALYSTS HAVE TO SAY AFTER $COST EARNINGS:
Bernstein SocGen (Outperform, PT: $1,153)
"Costco reported 3Q25 results and managed to beat consensus expectations – with an 8% comp ex gas & FX – despite its well telegraphed monthly sales results. Gross and EBIT margins also came in slightly ahead of expectations while EPS of $4.28 was a 5c beat. We continue to believe that COST is the highest quality company in our coverage, with multiple decades of global warehouse expansion opportunities ahead. At 53.5x P/E, however, the stock is priced for perfection. A deceleration in the strong HSD comp sales growth trend could introduce downside risk and provide a better entry point for investors."
Raymond James (Outperform, PT: $1,070)
"We reaffirm our Outperform rating and maintain our $1,070 price target following Costco’s F3Q25 results. The company delivered another solid quarter, with adjusted EPS ahead of expectations and strong comp growth of 8.0% y/y (ex-gas and FX), led by healthy traffic and resilient average ticket. Membership trends remain robust, with executive penetration and digital engagement supporting deeper share of wallet and strong renewal rates. While valuation remains elevated (COST +25% over the past 12 months vs. S&P 500 +12%), we believe the premium is warranted given Costco’s consistent execution, defensive category mix, and strong member loyalty. Looking ahead, we continue to model ~25 net new annual openings, broad-based share gains across food and non-food, and ample flexibility for reinvestment and capital returns. Costco’s supply chain capabilities, strong vendor relationships, and pricing discipline leave it better positioned than most to absorb tariff-related pressures. Importantly, in a potentially more inflationary environment, the club model’s value proposition and scale advantage could become even more compelling to consumers. COST remains a core long-term compounder in any macro backdrop."
Loop Capital (Buy, PT: $1,110)
"We are maintaining our Buy rating and trimming our price target on Costco from $1,115 to $1,110 as we build a bit of near-term cushion into our estimates given macro uncertainties. Our PT is driven by our discounted NOPAT model. Core SSS beat consensus for each period of the quarter. MFI grew 10.4% in the quarter, right in line with our estimate. Costco is slow to pass on cost increases, and we think this is leading to market share growth. These opportunities should increase as inflation spreads on tariff-impacted products. Over time, Costco capitulates to market pricing trends to capture its normal margin levels. Our rating remains Buy on Costco, as we see outsized value driving traffic to clubs. Our F25 EPS estimate of $17.96 is 16 cents below consensus as we expect COST to eat some inflation in the near-term."
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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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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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Wall St Engine
Trump: The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY! https://t.co/fL2K58OCx4
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Trump: The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY! https://t.co/fL2K58OCx4
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