Can Dell Stock Hit $560?
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To get its stock back to $560, Dell Technologies (DELL) needs profit from its fast-growing server sales to hold up as input costs rise. The shares recently traded above that level, closing at $587.59 on September 17, 2026. After the shares fell 37%, that peak is 57.8% above their latest close of $372.36. Dell now trades at 21.1 times earnings, coming in below the 22.9 times of the median S&P 500 company. Dell is either a fast grower on sale, or a stock fairly priced for growth that may not last. So what does a buyer get at today’s price?
What Dell Gives A Buyer At Today’s Price
A buyer gets a company growing far faster than the typical stock at a lower earnings multiple. Dell’s revenue rose 49.0% over the four quarters to July 2026, against 8.6% for the median S&P 500 company. Over those same quarters, net income more than doubled from a year earlier, reaching $11.4 billion from $4.84 billion.
The Infrastructure Solutions Group, which includes Dell’s servers and storage, drove most of the growth in fiscal 2026. Revenue for that segment grew 39.5% to $60.8 billion, while the Client Solutions Group grew 5.4%. On the September 1 call, management said demand exceeds supply and noted that Dell ended fiscal Q2 2027 with a record $95 billion of AI backlog.
How Dell’s Past Year Compares With Earlier Years
Dell’s recent growth sits well above its historical pace. Even counting the latest twelve months to July 2026, revenue growth averaged 19.2% over its last three such periods. Dell has also seen its revenue shrink before. It fell 12.5% in the twelve months to August 2023 and dropped again the following year. Price increases also account for part of today’s growth. On the September 1 call, management said a component of its server outlook comes from price increases as input costs keep rising, adding that storage is similar.
Dell also keeps less of each sale than most S&P 500 companies. The company recorded an operating margin of 9.6% over the four quarters to July 2026, compared with 18.9% for the median company. Gross margin over those quarters landed at 19.8%, below its three-period average of 21.2%. Management said that, leaving out the effect of selling more AI servers, gross margin rates are up from a year earlier, a sign that AI servers earn less on each dollar of sales. With growth this far above its past and margins this thin, Dell’s price appears to assume the pace will not last.
Dell Has Raised Its Own Bar For Fiscal 2027
In its September 1 release, Dell lifted its fiscal 2027 revenue guide to $192 billion from the $167 billion projected in May. The company also raised its guide for AI server revenue to $74 billion from $60 billion. Dell sold $90.8 billion in the first half of fiscal 2027, so meeting the full-year guide takes about $101 billion in the second half.
Dell expects to spend about 8% of fiscal 2027 revenue on operating expenses, the lowest in its 42-year history. Its twelve-month operating margin is now the highest at any quarter end in data going back to fiscal 2017. Supply remains short, however. Management said DRAM, followed by NAND, remains the main constraint. Management also expects the operating income rate in the Client Solutions Group to ease to roughly 6% in fiscal Q3 2027.
A buyer at today’s price is betting that the market has mispriced Dell, that the surge in server sales lasts, and that margins hold up as input costs rise. When Dell reports, expected in November 2026, its revenue for fiscal Q3 2027 against the $49 billion guide is the number to watch.
Still Holding Dell Technologies After The Drop?
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