Dell gears up for Q2FY27 earnings as analysts raise targets
- Dell shares fell 3.4% to $456.24 on Friday amid tariff fears
- Q2FY27 earnings due Sept 1; EPS est $4.92 vs $2.32 prior year
- Revenue estimated at $44.51 billion, up from $29.78 billion
- Top analysts including Citi and Wells Fargo raise price targets
- Michael Dell renews support for Trump Accounts program pledge
*this image is generated using AI for illustrative purposes only.
Dell Technologies Inc. (NYSE: DELL) shares fell 3.4% to close at $456.24 on Friday, reflecting investor caution over potential semiconductor tariffs and broader trade policy shifts.
The Trump administration is reportedly considering tariff extensions beyond chips to products containing them, including laptops and gaming consoles. Commerce Secretary Howard Lutnick has indicated a preference for linking tariff relief to U.S. chip manufacturing investments. The White House dismissed these reports as "baseless speculation" pending official announcements.
Earnings & Analyst Outlook
Dell is scheduled to report second-quarter earnings after the closing bell on Tuesday, September 1, 2026. Analysts project significant growth in both top-line and bottom-line metrics compared to the prior year.
| Metric | Estimate | YoY Change |
|---|---|---|
| EPS | $4.92 | Up from $2.32 |
| Revenue | $44.51 billion | Up from $29.78 billion |
Recent analyst actions from Benzinga’s most-accurate analysts include:
- Citigroup: Asiya Merchant maintained a Buy rating and boosted the price target from $475 to $515 on July 24, 2026 (92% accuracy).
- Wells Fargo: Aaron Rakers maintained an Overweight rating and boosted the price target from $505 to $545 on August 14, 2026 (88% accuracy).
- Evercore ISI Group: Amit Daryanani maintained an Outperform rating and raised the price target from $500 to $550 on August 19, 2026 (83% accuracy).
- Morgan Stanley: Erik Woodring maintained an Equal-Weight rating and raised the price target from $430 to $434 on August 24, 2026 (81% accuracy).
- UBS: David Vogt maintained a Neutral rating and increased the price target from $440 to $455 on August 26, 2026 (75% accuracy).
Corporate Initiatives
Michael Dell renewed support for the Trump Accounts program as it officially launched nationwide last month. He reiterated the $6.25 billion pledge he and his wife, Susan Dell, made last year to provide $250 to 25 million qualifying American children.
ETF Exposure
Dell carries significant weight in several exchange-traded funds, meaning fund flows could drive automatic trading activity.
- Tortoise AI Infrastructure ETF (NYSE: TCAI): 6.14% weight
- GraniteShares 2x Long DELL Daily ETF (NASDAQ: DLLL): 66.65% weight
- American Customer Satisfaction ETF (BATS: ACSI): 4.88% weight
What the Numbers Show
Analysts estimate Dell’s revenue will rise to $44.51 billion from $29.78 billion, while EPS is expected to jump to $4.92 from $2.32. This implies a projected operating leverage effect, where profit per share is estimated to grow at a faster pace than top-line revenue. The divergence between the conservative UBS target ($455) and the bullish Evercore ISI target ($550) highlights varying views on how tariff risks may impact near-term margins versus long-term data center demand.
How might the proposed expansion of tariffs to finished goods like laptops impact Dell's gross margins if they fail to pass costs to consumers?
Could Dell's $6.25 billion pledge and support for Trump Accounts influence the administration's decision on tariff exemptions for U.S.-assembled components?
Will the significant divergence between bullish (Evercore) and neutral (UBS) analyst targets narrow once Q2 earnings clarify the extent of tariff-related headwinds?
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