Evercore adds Dell to Tactical Outperform list ahead of earnings

Evercore adds Dell to Tactical Outperform list ahead of earnings

Vahid Karaahmetovic

Thu, February 19, 2026 at 10:01 PM GMT+9 2 min read

In this article:

  •                                       StockStory Top Pick 
    

    EVR

    +3.45%

 DELL  

 +0.59%  

Investing.com – Evercore added Dell Technologies (NYSE:DELL) to its Tactical Outperform list ahead of the company’s January-quarter results next week, saying it expects the hardware maker to outperform the current top and bottom-line forecasts.

The broker expects Dell to beat consensus estimates of $31.4 billion in revenue and $3.52 in earnings per share (EPS), supported by “strong near-term (NT) demand trends across traditional hardware (PCs/servers) and AI compute.”

Evercore also pointed to memory pricing trends as a near-term tailwind. With concerns around inflation in memory costs, it expects Dell “to have benefited from a demand pull-in across PCs and traditional servers as customers will have looked to get ahead of average selling price (ASP) increases.”

In the Infrastructure Solutions Group (ISG) segment, AI server demand remains a key driver. Dell exited fiscal third quarter with AI orders of $12.3 billion and a backlog of $18.4 billion, while guiding to fiscal 2026 (FY26) AI server revenue of $25 billion. Evercore said this implies a step up to more than $9 billion in January-quarter AI revenue.

On the client side, early IDC data suggests Dell gained roughly 100 basis points of market share in the fourth quarter, marking its first share gain in more than three years.

Having said that, Evercore expects some January-quarter gross margin pressure as Dell honors prior purchase orders. Consensus currently implies a roughly 90 basis point sequential decline in gross margin to 20.2%, down 410 basis points year over year, partly reflecting early memory headwinds.

“DELL has already shifted to more dynamic pricing actions and a shorter quote window to better protect margins going forward,” the firm wrote.

Looking ahead, Evercore expects management to outline a path to at least high-single-digit revenue growth and low-to-mid-teens EPS growth into fiscal 2027, supported by gross profit dollar expansion, operating leverage and share repurchases.

On AI servers, it forecasts a “sizable step-up with Rubin ramps” that could enable $35 billion to $40 billion in revenue with stable mid-single-digit margins.

Evercore maintained its Outperform rating on Dell while lowering its price target to $160.

Related articles

Evercore adds Dell to Tactical Outperform list ahead of earnings

As Claude disrupts stock market, Anthropic researcher warns ’world is in peril’

This sector is ‘poised for a big, beautiful year’: Truist

Terms and Privacy Policy

Privacy Dashboard

More Info

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin