What Changed For Dell Stock, And What Did Not?
Dell Technologies (DELL) stock fell 11.3% on Wednesday, October 14, 2026, far more than the 1.1% decline for the S&P 500. The slide followed a downgrade earlier that day from Barclays, which lowered the shares to Equal Weight from Overweight amid concerns that enterprise AI adoption is lagging. While the analysts worry about timing, the computer maker has maintained a rapid clip. So how big is the part of Dell that has been doing the growing?
Infrastructure Overtook Dell’s Client Segment In Fiscal 2026
Dell’s Infrastructure Solutions Group brought in $60.8 billion in fiscal 2026, which ended in January 2026. That division generated 53.6% of company revenue, with its revenue expanding 39.5% from the year before. Meanwhile, the Client Solutions Group, the other main business segment at Dell, grew 5.4% to $51.0 billion.
The balance of power looked completely different just a year earlier. Back then, the client business was the larger of the two, accounting for 50.6% of revenue against 45.6% for infrastructure. Over a single year, infrastructure leaped from the smaller segment to representing more than half of Dell. The infrastructure business is the part of the company expanding at speed, whereas the client operations have grown slowly.
What Dell Stock Costs Now
Even after Wednesday’s drop, Dell trades at 28.8 times its earnings over the past twelve months, compared with 22.7 times for the S&P 500. Investors are paying that premium for growth. During the three months to July 2026, or fiscal Q2 2027, Dell’s revenue rose 57.7% from a year earlier.
That blistering pace is a recent development for Dell. Revenue over the past twelve months grew 49.0%, a sharp acceleration from the 10.5% rate seen in the twelve months before.
Dell’s Profits Are Where They Were Before Wednesday
Wednesday’s market action changed the price of Dell stock, but it changed nothing about the profit the company has already reported for its latest quarter and past year. Dell posted an operating margin of 11.6% in fiscal Q2 2027, up from 6.4% in the same quarter a year earlier. Over the past twelve months, net income reached $11.4 billion, more than double the $4.84 billion recorded in the twelve months before.
The operating margin over the past twelve months stood at 9.6%, its highest at any quarter-end in data going back to fiscal Q3 2017. This metric is the number to watch in the company’s next report, expected on or around November 23, 2026. The margin reveals whether Dell’s faster revenue growth is still translating into higher profit.
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