PC and server maker Dell Technologies (DELL) is scheduled to announce its results for the fourth quarter of Fiscal 2025 after the market closes on February 27. DELL stock has risen more than 22.5% over the past year, as the company is benefiting from the demand for its AI (artificial intelligence) servers. Analysts expect Dell to report Q4 FY25 earnings per share (EPS) of $2.52, reflecting a 14.5% increase year-over-year.
Further, Q4 FY25 revenue is expected to rise 10% to $24.6 billion. Investors will pay attention to management’s commentary on the demand for the company’s AI servers and the potential timing of a PC refresh cycle.
Analysts’ Views Ahead of Dell’s Q4 Earnings
Heading into the Q4 FY25 results, Bank of America analyst Wamsi Mohan reduced his price target for Dell Technologies stock to $150 from $155 but maintained a Buy rating. Mohan believes that the focus will be on the company’s AI server backlog and the impact of Nvidia’s (NVDA) Blackwell delays.
The five-star analyst added that while the company’s near-term setup could be challenged on AI server revenue expectations and margins, “this will be transitory.” Mohan thinks that as Dell begins to deliver on the demand for AI servers and customers shift to more enterprise-level solutions, the company’s revenue and margins will move higher over time.
Meanwhile, Evercore analyst Amit Daryanani reiterated a Buy rating on DELL stock but lowered the price target to $145 from $150. The five-star analyst sees the possibility of the company delivering EPS of more than $10 in Fiscal 2026, which should keep DELL stock moving in the right direction. However, he expects a more conservative start to the year based on historical trends. Daryanani lowered his price target to reflect a prudent guidance that is weighted more toward the second half of FY26.
Options Traders Anticipate Major Move on Dell’s Q4 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about 10.3% move in either direction in reaction to Dell’s Q4 FY25 results.
Is DELL Stock a Good Buy Now?
With 14 Buys and two Holds, Dell Technologies stock scores a Strong Buy consensus rating. The average DELL stock price target of $146.24 implies 32.2% upside potential.
