Dell Technologies Inc (NASDAQ:DELL) will report its first quarter results next week, with Bank of America analysts forecasting the company will surpass Wall Street expectations on both revenue and earnings while raising its full-year outlook.
The brokerage reiterated its ‘Buy’ rating on Dell shares and increased its price target to $280 from $246, citing sustained demand for artificial intelligence servers, stronger-than-expected PC trends in the first half of the year, and improving infrastructure solutions revenue.
Shares of Dell traded up 4% at $245 on Wednesday, up about 95% so far in 2026.
Bank of America said it expects Dell to deliver first-quarter revenue and earnings per share above consensus estimates, while also issuing second-quarter guidance ahead of market expectations.
The firm projects Q2 revenue in a range of $37 billion to $40 billion, compared with Street estimates of roughly $35 billion.
Earnings per share are expected between $2.85 and $3.05, versus consensus expectations near $2.87.
For the full fiscal year, the analysts expect Dell to raise its revenue outlook to between $143 billion and $147 billion. They also forecast adjusted earnings per share guidance to increase to a range of $12.85 to $13.25, reflecting stronger first-quarter results and improved near-term guidance.
The analysts pointed to continued momentum in Dell’s Infrastructure Solutions Group, particularly in AI servers. Bank of America maintained its estimate for fiscal 2027 AI server revenue at $60 billion, above Dell’s own guidance of $50 billion and ahead of broader market expectations.
For the first quarter, the firm expects AI server revenue of approximately $15 billion, with orders reaching $20 billion and backlog standing near $49 billion.
They also highlighted growing demand from tier-two cloud service providers, driven by increasing investment in AI inferencing and CPU-intensive hardware. However, the analysts cautioned that enterprise infrastructure spending could moderate in the second half of the year as pricing increases weigh on demand.
In Dell’s Client Solutions Group, which includes PCs, Bank of America said demand in the first half of the year has been stronger than previously anticipated, likely due in part to customers accelerating purchases. The firm now expects first-half client revenue growth of 20%, supported by higher average selling prices and modest unit growth.
Still, the bank’s analysts expect PC demand to slow in the second half, forecasting a 12% revenue decline for the period as unit volumes weaken.
Bank of America raised its long-term estimates for Dell, increasing its fiscal 2027 revenue forecast to $152 billion from $147 billion and its earnings estimate to $13.22 per share from $13.04. The analysts explained that the higher valuation reflects continued execution and what they described as the “early innings” of enterprise AI adoption.