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Feb 28 - Dell Technologies Inc (DELL, Financial) shares fell more than 5% on Friday morning after posting mixed fourth?quarter results and issuing cautious fiscal Q1 2026 guidance.
The company reported Q4 earnings of $1.91 billion, or $2.68 per share, outperforming analyst expectations of $2.52 per share. However, revenue reached $23.9 billion, missing consensus forecasts of $24.6 billion.
Investors reacted to the combination of strong earnings and a softer revenue performance. Analysts from UBS maintained a bullish view, suggesting that the stock's weakness could represent a buying opportunity despite near-term challenges in the PC market and revenue recognition issues linked to a strategic realignment of the GPU product line.
For fiscal Q1 2026, Dell projects EPS of AU$1.65, short of the consensus of $1.83. Revenue guidance ranges from $22.5 billion to $23.5 billion, with a midpoint of $23 billion compared to expectations of $23.7 billion.
Looking ahead, fiscal 2026 guidance anticipates AI-optimized server revenue of at least $15 billion more than a 50% increase over fiscal 2025. Market participants remain cautious amid evolving technology trends. Analysts will continue monitoring Dell's performance as market conditions and tech trends evolve further, cautiously.
This article first appeared on GuruFocus.