- Dell Technologies Inc.’s (DELL) stock fell 6.76% to $107.83 after hours, despite Q4 earnings of $2.68 per share beating the $2.52 consensus by $0.16, as revenue of $23.93 billion missed the $24.57 billion forecast.
- Q1 guidance disappointed with EPS at $1.65 versus $1.78 consensus and revenue of $22.50 – 23.50 billion below $23.63 billion expected, while FY26 guidance projects EPS of $9.30, above $9.26 consensus, and revenue of $101 – 105 billion, in line with $103.42 billion.
- CFO Yvonne McGill touted a transformative FY25 with $95.6 billion in revenue and an 18% dividend hike, signaling confidence in FY26 growth despite a 7.2% Q4 revenue rise overshadowed by near-term caution.
Dell Technologies Inc. (DELL) finds itself navigating a complex landscape as its stock slipped nearly 7% to $107.83 after hours on Thursday, reflecting broader market turbulence and mixed reactions to its latest financial performance. The company reported fourth-quarter earnings of $2.68 per share for the period ending January 2025, surpassing the consensus estimate of $2.52 by $0.16, a reflection of its operational strength. However, revenue of $23.93 billion, despite a 7.2% year-over-year increase, fell short of the $24.57 billion analysts anticipated, hinting at challenges in meeting lofty growth expectations in a competitive tech hardware sector.
Looking ahead, Dell’s guidance paints a nuanced picture. For Q1, the company projects earnings per share at $1.65, below the $1.78 consensus, and revenue between $22.50 – 23.50 billion, undercutting the $23.63 billion forecast. This conservative outlook likely contributed to the after-hours dip signaling investor caution about near-term headwinds. Yet, Dell’s full-year FY26 guidance offers a brighter note, with earnings per share expected at $9.30, edging out the $9.26 consensus, and revenue projected at $101 – 105 billion – up 8% at the $103.0 billion midpoint – aligning closely with the $103.42 billion consensus. This forward-looking confidence underscores Dell’s strategic positioning for growth over the longer term.
CFO Yvonne McGill described FY25 as transformative, with total revenue reaching $95.6 billion and double-digit growth in its core business, culminating in record earnings per share. The decision to raise the annual dividend by 18% reflects Dell’s commitment to shareholders and optimism about FY26 opportunities, even as Q4 revenue of $23.93 billion missed the mark. The stock’s intraday decline suggests market sensitivity to the Q1 shortfall, yet the $9.30 FY26 earnings projection and $101 – 105 billion revenue range highlight resilience. Dell’s ability to exceed earnings expectations by $0.16 in Q4 while guiding FY26 revenue to $103.0 billion at the midpoint demonstrates a balancing act—managing immediate pressures while capitalizing on its established strengths in a dynamic industry.
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