Dell Technologies DELL is benefiting from robust commercial PC demand, which has significantly contributed to the growth of its Client Solutions Group (“CSG”). In the fourth quarter of fiscal 2026, CSG revenues reached $13.5 billion, marking a 14% year-over-year increase.
Its Commercial segment registered 16% growth, with revenues of $11.6 billion. This marks the sixth consecutive quarter of growth in commercial PC demand, demonstrating Dell’s ability to capture market share and expand its customer base. The increasing adoption of remote working and the PC-refresh cycle, coupled with advancements in AI-enabled architectures from Intel and AMD, are expected to further drive demand for Dell’s CSG products in fiscal 2027.
Dell’s strategic initiatives have been pivotal in driving this growth. The company has broadened its portfolio to target diverse market segments, including the lower end of the commercial market, emerging markets, consumer and education sectors. Recently, Dell introduced a completely reimagined commercial portfolio, which comprises notebooks, desktops, workstations, monitors and peripherals with thinner, lighter, premium designs, better thermals, power efficiency and AI-ready hardware. The company explicitly addresses end-users’ requirements of sleek, high-performance devices and IT departments’ requirements for security, manageability and cost control. The portfolio helps DELL increase win rates in enterprise deals, reduce friction in purchasing decisions and strengthen Dell’s position as a one-stop enterprise hardware provider.
Dell Technologies’ innovative portfolio, expanding partner base and growing AI footprint are significant growth drivers. For the first quarter of fiscal 2027, revenues are expected to be between $34.7 billion and $35.7 billion, with the mid-point of $35.2 billion suggesting 51% year-over-year growth.
DELL Faces Stiff Competition From AAPL and HPQ
Dell Technologies suffers from stiff competition in the PC market from the likes of Apple AAPL and HP HPQ)
Apple’s expanding Mac business has been noteworthy. In March 2026, Apple announced the availability of all-new MacBook Neo, iPhone 17e, the new MacBook Air with M5 and MacBook Pro with M5 Pro and M5 Max; iPad Air, which delivers even more performance with M4; a new Studio Display; and all-new Studio Display XDR.
HP’s strong position in the AI PC market is becoming a key driver of growth and profitability. In the first quarter of fiscal 2026, AI PCs accounted for more than 35% of HP’s total PC shipments, up from the previous quarter’s 30% contribution. To make the most of the growing opportunities in this category, HP has launched several AI PCs this year and plans to continue expanding its AI PC portfolio. With the AI PC category expanding quickly and offering higher value per unit, HP is well-positioned to capture greater market share and sustain premium margins in the years ahead.
DELL’s Share Price Performance, Valuation, and Estimates
DELL’s shares have gained 43.9% in the year-to-date-period, outperforming the broader Zacks Computer & Technology sector’s fall of 1.9% and the Zacks Computer - Micro Computers industry decline of 3.7%.
DELL Stock's Performance
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DELL shares are cheap, with a forward 12-month Price/Sales of 0.86X compared with the Computer & Technology sector’s 6.04X. DELL has a Value Score of B.
DELL's Valuation
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The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $12.82 per share, up by 11 cents over the past 30 days, suggesting 24.47% year-over-year growth.
Dell Technologies Inc. Price and Consensus
Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote
DELL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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