Dell is set to report its second-quarter results on Tuesday after markets close, and expectations are running high. Wall Street is looking for EPS of $4.93 on revenue of $44.48 billion, which would represent revenue growth of over 49% for the quarter.

Dell Technologies Inc. (DELL) currently trades at $456.25, with the average analyst price target at $510.26, leaving some room to the upside if results impress. That average target implies roughly 12% upside from current levels, a relatively modest cushion for a stock that has already more than tripled this year, underscoring how much optimism is already embedded in the share price.

Dell's track record will be on investors' minds heading into Tuesday. Over the past two years, the company has beaten EPS estimates 88% of the time and revenue estimates 63% of the time. Last quarter, Dell posted revenues of $43.84 billion, up 87.5% year on year, beating both revenue and EPS estimates, and guidance for the following quarter also came in ahead of expectations.

The growth has been driven largely by Dell's Infrastructure Solutions Group, the segment that houses its servers and storage products and which has become the primary beneficiary of hyperscaler and enterprise AI buildouts. How that mix of AI-driven volume translates into margin, given the lower-margin character of large AI server deals and the component cost inflation analysts have flagged, is a key question alongside the headline numbers.

Analyst sentiment heading into this print has been broadly positive. Over the last three months, EPS estimates have seen 21 upward revisions and zero downward revisions. Revenue estimates tell the same story, with 19 upward revisions and none to the downside.

What Analysts Are Saying

J.P. Morgan analyst Joseph Cardoso expects Dell to raise its full-year FY27 revenue guidance again, building on an already upgraded outlook that calls for 47% growth.

Wells Fargo analyst Aaron Rakers pointed to continued demand for server CPUs, driven by agentic AI use cases, as a key driver. He also flagged Dell's ability to pass through component cost inflation and a 14th-generation installed base upgrade cycle as reasons to expect more upside in the company's server results and outlook.

AI infrastructure spending has been a major tailwind for Dell. As companies continue to pour money into data centers and AI buildouts, demand for Dell's server and storage equipment has followed. DELL stock has surged over 270% so far this year, a standout move compared with the roughly 13% gain in the broader S&P 500. Dell's traditional PC business, by contrast, has grown far more slowly than its infrastructure segment, making the AI server pipeline the central variable in the company's growth trajectory.

A Note of Caution

Not everyone is ready to pile in ahead of the print. Seeking Alpha's Quant ratings and its analyst community have rated the stock a Hold, while Wall Street leans Buy.

Seeking Alpha analyst Oakoff Investments put it plainly: "I think the market has already priced in a lot of the upcoming fundamental growth. The odds for beating the upcoming Q2 2027 earnings look high, but it doesn't mean the market will be willing to reward DELL with another leg higher."

That is worth keeping in mind: beating estimates is one thing, getting rewarded for it in the current market is another.

Investors in the broader hardware and infrastructure space have been relatively steady heading into this earnings season, with the group up around 1.8% on average over the last month. Dell has outpaced that, rising 6.3% in the same period.

Peers HP and Everpure both reported recently. HP grew revenue 12.5% and beat estimates by 7.5%, but still traded down 3.5% after results. Everpure grew 37.7%, beat by 7.7%, and also fell 10% post-earnings. Those reactions highlight the broader pattern Dell investors will be watching: in an earnings environment where AI-related growth is widely anticipated, beats alone have not reliably translated into post-earnings stock gains.

Dell reports Tuesday after the bell.

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