The Zacks Analyst Blog Highlights Dell, Hewlett-Packard, Cisco Systems and Super Micro Computers

For Immediate Release

Chicago, IL – February 25, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Dell Technologies DELL, Hewlett-Packard HPE, Cisco Systems CSCO and Super Micro Computers SMCI.

Here are highlights from Tuesday’s Analyst Blog:

DELL Gears Up to Report Q4 Earnings: Buy, Sell or Hold the Stock?

Dell Technologies is scheduled to report itsfourth-quarter fiscal 2026 results on Feb. 26, 2026.

For the fourth quarter of fiscal 2026, revenues are expected to be between $31 billion and $32 billion, with the mid-point of $31.5 billion suggesting 32% year-over-year growth. Non-GAAP earnings are expected to be $3.50 per share (+/- 10 cents) at the midpoint, indicating 31% growth year over year. The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $31.91 billion, suggesting 33.33% growth from the figure reported in the year-ago quarter. The consensus mark for quarterly earnings is pegged at $3.54 per share, unchanged over the past 30 days and suggesting year-over-year growth of 32.09%.

For fiscal 2026, revenues are expected to be between $111.2 billion and $112.2 billion, with the mid-point of $111.7 billion indicating 17% year-over-year growth. Non-GAAP earnings are expected to be $9.92 per share (+/- 10 cents) at the midpoint, up 22% year over year. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $112.02 billion, suggesting 17.22% growth from the figure reported in the year-ago quarter. The consensus mark for quarterly earnings is pegged at $9.98 per share, unchanged over the past 30 days and suggesting year-over-year growth of 22.60%.

Dell Technologies' earnings beat the Zacks Consensus Estimate in all the trailing three quarters, while missing the same in one quarter, with an earnings surprise of 0.23% on average.

Let's see how things have shaped up for DELL shares prior to this announcement.

Key Factors to Note for DELL

Dell Technologies' fiscal fourth-quarter results are expected to benefit from the robust demand for AI-optimized servers, driven by ongoing digital transformation and heightened interest in generative AI applications.

In the fiscal fourth quarter, Dell Technologies anticipates 34% growth at the midpoint for the combined ISG and CSG, with ISG growing in the mid-sixties and CSG growing in the low to mid-single digits. The Zacks Consensus Estimate for DELL's fiscal third-quarter 2026 ISG revenues is currently pegged at $18.818 billion, indicating 66% year-over-year growth. The consensus mark for CSG revenues is pegged at $12.618 billion, suggesting 6.20% year-over-year growth.

The growing AI market and Dell Technologies' leadership in AI-optimized servers are expected to have been a tailwind in the to-be-reported quarter. In the third quarter of fiscal 2026, Dell Technologies booked $12.3 billion in AI server orders, bringing year-to-date orders to $30 billion.

The company shipped $5.6 billion worth of AI servers in the fiscal third quarter. The company ended the fiscal third quarter with a record backlog of $18.4 billion in AI server orders, highlighting the sustained demand for its AI solutions. The company expects to ship approximately $9.4 billion worth of AI servers in the fiscal fourth quarter of 2026. Its AI server shipments are expected to reach $25 billion for fiscal 2026, representing a remarkable 150% year-over-year growth.

However, the company is facing a challenging macroeconomic environment, along with stiff competition in the PC market from companies like HP and Lenovo. Dell Technologies faces challenges from weaker demand for traditional servers and storage in North America, slower federal spending, and declining consumer PC revenue. Supply-chain costs and competitive pressures in the AI market are also impacting profitability.

DELL Shares Underperform Sector, Industry

In the trailing six-month period, Dell Technologies' shares have plunged 9% against the broader Zacks Computer & Technology sector's return of 10.6%. The Zacks Computer - Micro Computers industry increased 15.6% in the same time frame.

However, Dell Technologies shares have outperformed its peer, Hewlett-Packard, which is also expanding its footprint in the server space. Hewlett-Packard is benefiting from robust demand for its AI-optimized servers, resulting in significant revenue growth in its server segment. The company's shares have lost 11.3% in the trailing six-month period.

DELL Shares Trading Cheap

Dell Technologies shares are cheap, as suggested by a Value Score of A.

Dell Technologies' stock is trading at a significant discount with a forward 12-month P/S of 0.62X compared with the Computer and Technology sector's 6.48X.

DELL Faces Stiff Competition

Despite DELL's innovative portfolio, expanding partner base, and growing AI footprint, the company is facing stiff competition from the likes of Cisco Systems, Hewlett-Packard, and Super Micro Computers, which are also expanding their footprint in the AI infrastructure space.

Strong demand for Cisco Systems products in developing AI infrastructure has been a game-changer for the company. In the second quarter of fiscal 2026, Cisco Systems' AI Infrastructure orders from webscale customers exceeded $2.1 billion.

Super Micro Computer is often the first to market with the latest AI servers, including systems built on NVIDIA's B200 and GB200 platforms, giving it a strong edge. This early availability gives Super Micro Computer a significant edge in a fast-moving AI market. The company is also ready to support the next generation of platforms like NVIDIA B300 and AMD MI-350.

What Should Investors Do With DELL Stock?

Dell Technologies is expected to benefit from rising demand for AI-optimized servers and an expanding partner network. The company's innovation in AI infrastructure and positive earnings outlook support long-term strength.

However, Dell Technologies is facing declining consumer PC revenue, which remains a headwind. Supply-chain costs and competitive pressures in the AI market are also impacting profitability.

Dell Technologies currently has a Zacks Rank #4 (Sell), suggesting that investors should stay away from the stock right now.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Free: Instant Access to Zacks' Market-Crushing Strategies

Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.

Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.

Get all the details here >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]                                      

https://www.zacks.com                                                 

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research