Dell reported extraordinary fiscal 2027 second-quarter results, exceeding even the greatly increased expectations established after its first quarter. Revenue grew 58% year over year to $47.0 billion, while non-GAAP earnings per share increased 203% to $7.04.
The AI server growth wave is just getting started, and Dell will be a key beneficiary as enterprise sales take off, driving material revenue growth.
The current growth in the AI server market may not be maintainable, and it is typically lower-margin. With much credit for the AI buildout already baked into Dell's valuation, the margin of safety appears thin.
|
Metric
|
DELL
|
HPE
|
HPQ
|
|---|---|---|---|
Price/Earnings (Normalized) | 29.47 | 20.36 | 9.37 |
Price/Book Value | — | 3.23 | — |
Price/Sales | 2.38 | 2.18 | 0.51 |
Price/Cash Flow | 23.81 | 11.98 | 6.53 |
|
Metric
|
DELL
|
HPE
|
HPQ
|
|---|---|---|---|
Quick Ratio | 0.56 | 0.53 | 0.44 |
Current Ratio | 0.96 | 1.11 | 0.79 |
Interest Coverage | 24.38 | 6.69 | 6.84 |
|
Metric
|
DELL
|
HPE
|
HPQ
|
|---|---|---|---|
Return on Assets (Normalized) | 11.68% | 5.72% | 7.54% |
Return on Equity (Normalized) | — | 17.83% | — |
Return on Invested Capital (Normalized) | 43.17% | 10.24% | 35.05% |
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1-Day Chart
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