Dell Reports Strong Earnings but Maintains Hold Rating from TD Cowen
Dell Technologies Inc. (NYSE: DELL) delivered a strong fiscal second-quarter performance, with revenue surging to $46.97 billion and adjusted earnings per share reaching $7.04—both well above expectations. The company's AI server segment drove much of the growth, reporting record demand that tripled year-over-year. Despite these impressive results, TD Cowen analyst Krish Sankar maintained a Hold rating on Dell while raising its price target to $500 from $450. TD Cowen cited concerns about valuation as a key reason for not upgrading the stock. Although it raised earnings estimates and praised Dell's operational execution, the firm reduced the multiple applied to those forecasts due to component cost inflation risks that could pressure margins in the future. The analyst also noted increased institutional interest in Dell but emphasized that other AI stocks may offer better upside potential with less risk. Dell’s FY27 revenue outlook was raised to $192 billion, reflecting a 69% year-over-year growth projection and continued optimism about its traditional server business and PC market share gains. However, the firm believes Dell must deliver extraordinary earnings growth for significant stock price upside.
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