Dell Stock Plunges Despite Q1 Beat: What To Know
Dell stock is tanking after the PC maker beat Q1 estimates but issued a mixed outlook for its second quarter. Here's what you need to know.

Dell Technologies (DELL) stock is trading down more than 20% Friday after the PC maker's appearance on the earnings calendar. While Dell exceeded top- and bottom-line expectations for its fiscal first quarter, it issued mixed guidance for its second quarter.
In the three months ended May 3, Dell's revenue increased 6% year-over-year to $22.2 billion, driven by a 42.4% jump in servers and networking revenue. The company said earnings per share (EPS) decreased 3% from the year-ago period to $1.27.
"We again demonstrated our ability to execute and deliver strong cash flow, with artificial intelligence (AI) continuing to drive new growth," Yvonne McGill, chief financial officer at Dell, said in a statement, adding that the company "generated $7.9 billion of cash flow from operations over the last 12 months."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results beat analysts' expectations. According to CNBC, Wall Street was anticipating revenue of $21.6 billion billion and earnings of $1.26 per share.
For its fiscal second quarter, Dell anticipates earnings of $1.65 per share and revenue in the range of $23.5 billion to $24.5 billion, the company said on its conference call.
However, the Q2 outlook came in mixed compared with analysts' expectations. According to Yahoo Finance, Wall Street is expecting revenue of $23.3 billion and earnings of $1.82 per share.
"No company is better positioned than Dell to bring AI to the enterprise," said Jeff Clarke, chief operating officer of Dell, in a statement.
Is Dell stock a buy, sell or hold?
The tech stock has posted an incredible performance so far in 2024, rising more than 70% for the year to date as of this writing, even when factoring in today's selloff.
Overall, analysts remain upbeat on Dell. According to S&P Global Market Intelligence, the consensus analyst target price for the AI stock is $153.01, representing implied upside of 14% to current levels. Meanwhile, the consensus recommendation is a Buy.
UBS Global Research is one of the more bullish outfits on Dell stock following the earnings release, with analyst David Vogt maintaining a Buy rating and raising his price target to $164 from $141.
The price-target hike is "driven by stronger and more durable revenue and profit growth than previously expected," Vogt wrote in a May 31 report. "While share price upside potential is more modest over the next 12 months relative to the past 12 months, we still view Dell as a secular winner in AI servers over the next several years."
UBS' new $164 price target represents implied upside of about 22% to current levels.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Retire in Costa Rica With These Three Tax Benefits
Retirement Taxes Costa Rica may be a good place for retirement if you like the low cost of living and savings for your heirs.
By Kate Schubel Published
-
Five Ways to Ease Caregiver Stress
Caregiver stress is real. Here are five techniques to protect your health and happiness while caring for a loved one.
By MP Dunleavey Published
-
Financial Strategies Borrowed From the Big Game's Playbook
Like the best football teams, you can win at financial planning by executing a strategy, making halftime adjustments and staying focused on the ultimate prize.
By Frank J. Legan Published
-
Three Ways to Plan Now for a Social Security Shortfall Later
The outlook for Social Security is gloomy, but you can save now to protect against benefit cuts later. If the cuts don't happen, you'll still be better off.
By Tyler Jones Published
-
Is It Too Late to Invest in Bitcoin?
The price of the world's No. 1 cryptocurrency recently surpassed $100,000 for the first time. Is it too late to invest in bitcoin?
By Coryanne Hicks Published
-
Extra Cash? Should You Pay Off Debt or Invest?
Depending on your financial situation, you might benefit from paying off debt, investing or both. Here are some things to consider before deciding.
By Anthony Martin Published
-
The Future of 1031 Exchanges Under Trump Looks Bright
As a real estate investor himself, President Trump appears poised to preserve the tax-deferring power of this strategy. But you still must follow the rules.
By Edward E. Fernandez Published
-
Gambling vs Investing: How to Tell the Difference
It's easy to get caught up in the excitement of placing a bet on the Big Game, but beware of letting that emotion drive your investing decisions.
By James Martielli, CFA®, CAIA® Published
-
Stock Market Today: Stocks Swing Lower as Inflation Fears Rise
The latest consumer sentiment data showed near-term inflation expectations rose to their highest level since November 2023.
By Karee Venema Published
-
January Jobs Report Keeps Rates on Pause: What the Experts Are Saying
Jobs Report Solid labor market conditions point to the Fed maintaining a cautious stance on borrowing costs.
By Dan Burrows Published