Dell Technologies DELL is benefiting from growing enterprise demand for artificial intelligence (AI) infrastructure, cybersecurity and data protection solutions. The company recently expanded its cybersecurity and resilience portfolio to strengthen protection across AI environments, identity systems and enterprise infrastructure. These enhancements strengthen DELL’s competitive position against Cisco Systems CSCO and Hewlett Packard HPE.
The company introduced Security Hardening for Dell AI Factory and Resilience Operations for AI services to enhance workload protection and recovery. Expanded PowerProtect AI Assistant capabilities simplify cyber resilience management, while new identity resilience solutions support recovery across Active Directory, Microsoft Entra ID and Okta. Dell Technologies also enhanced PowerProtect and PowerScale integration for faster data recovery. The company also introduced quantum-safe encryption in PowerStore and Post-Quantum Readiness Assessment services to help enterprises address emerging cybersecurity threats.
Dell Technologies' growing AI infrastructure business has been a major growth driver. In second-quarter fiscal 2027, AI server revenues reached $16.4 billion, while the AI backlog surged to $95 billion. Strong enterprise adoption creates opportunities for the company to cross-sell security, storage and data protection solutions.
Dell Technologies' expanding cybersecurity capabilities, integrated infrastructure portfolio and robust AI demand strengthen its competitive position against Cisco Systems and Hewlett Packard. The company expects third-quarter fiscal 2027 revenues of approximately $49 billion, including $19 billion in AI server revenues.
How Competitors Fare against DELL
Dell Technologies suffers from stiff competition from companies like Cisco Systems and Hewlett Packard. Both companies are expanding their footprint in the security space.
Cisco Systems is benefiting from its expanding security portfolio, growing adoption of AI-driven cybersecurity solutions and strengthening Splunk momentum. In the fourth quarter of fiscal 2026, Security revenues increased 14% year over year to $2.23 billion. The entire security portfolio, including Splunk, recorded double-digit order growth.
Hewlett Packard is expanding its security capabilities by integrating Juniper Networks with its Aruba-based networking portfolio, strengthening its position in AI-native networking and converged network security. The company has also introduced server innovations designed to accelerate secure 5G and AI deployments, enhance security and automate operations from the edge to the core.
DELL’s Share Price Performance, Valuation & Estimates
Shares of Dell Technologies have appreciated 292.2% year to date, outperforming the broader Zacks Computer and Technology sector’s 16.5% growth.
DELL Stock’s Price Performance
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DELL stock is trading at a premium, with a Price/Free Cash Flow ratio of 37.61X compared with the broader sector’s 34.96X. Dell Technologies has a Value Score of D.
DELL’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Dell Technologies fiscal 2027 earnings is currently pegged at $26.09 per share, which has been unchanged over the past 30 days. This suggests 153.30% year-over-year growth.
Dell Technologies Inc. Price and Consensus
Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote
Dell Technologies currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).