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DELL's CSG Revenues Rise: Is an Improving PC Market the Catalyst?
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Key Takeaways
DELL's CSG revenues rose 5% Y/Y to $12.50B in Q1 FY26, driven by strong commercial PC demand.
Windows 11 refresh and AI-enabled PC upgrades are boosting enterprise interest in Dell's offerings.
DELL expanded AI partnerships with NVIDIA and others, enhancing edge computing and enterprise AI use.
Dell Technologies (DELL - Free Report) AI prospects remain strong, with AI expanding from major cloud service providers to large-scale enterprise deployments and edge computing with PCs.
Dell Technologies is a prominent PC maker and is expected to benefit from the recovering demand driven by the PC-refresh cycle. The company is benefiting from the Windows 11 PC refresh cycle as many enterprise customers upgrade to new AI-capable Windows 11 devices, driving strong demand in the commercial segment. In the first quarter of fiscal 2026, CSG revenues were $12.50 billion, up 5% year over year.
DELL is also benefiting from an expanding partner base that includes NVIDIA, Microsoft, Meta Platforms and Imbue. In March, Dell Technologies and NVIDIA expanded their AI Factory collaboration, introducing new AI PCs, infrastructure, software, and services to accelerate enterprise AI adoption across various scales.
Dell Technologies recently partnered with Lowe’s to enhance customer and associate experiences by deploying advanced AI and PC technologies. Using Dell AI Factory with NVIDIA and high-performance Dell devices, Lowe’s is optimizing inventory, improving asset protection, and streamlining store operations across its network.
In March 2025, Dell Technologies and NVIDIA also expanded their AI Factory collaboration, introducing new AI PCs, infrastructure, software, and services to accelerate enterprise AI adoption across various scales.
DELL Faces Stiff Competition in the PC Market
Dell Technologies suffers from stiff competition in the PC market from the likes of HP (HPQ - Free Report) and Apple (AAPL - Free Report) .
HPQ is benefiting from a sustained focus on launching new and innovative products. The growing interest in generative artificial intelligence-enabled PCs, along with Windows 11 upgrades and a probable PC refreshment cycle, is likely to drive fresh demand for PCs in 2025.
The growing interest in generative AI-enabled PCs might give a fresh boost to HP’s PC demand in the years ahead. The company forecasted that 40-60% of all PCs will be AI PCs in the next three years. To make the most of the growing opportunities in this category, HP has launched several AI PCs this year and plans to continue to expand its AI PC portfolio.
Apple’s Mac business is benefiting from strong demand for M4, M4 Pro, and M4 Max chips. In March 2025, Apple expanded its Mac portfolio with the new MacBook Air powered by the M4 chip with up to 18 hours of battery life and a new 12MP Center Stage camera.
DELL’s Share Price Performance, Valuation and Estimates
DELL’s shares have risen 1.1% year to date, underperforming the broader Zacks Computer & Technology sector’s return of 1.6%.
DELL Stock Performance
Image Source: Zacks Investment Research
DELL stock is trading at a premium, with a forward 12-month Price/Sales of 0.77X compared with the Computer & Technology sector’s 6.36X. DELL has a Value Score of A.
DELL Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is pegged at $2.26 per share, which has increased 11.5% in the past 30 days. This indicates a year-over-year increase of 19.58%.
The consensus mark for fiscal 2026 earnings is pegged at $9.43 per share, which increased 6.91% in the past 30 days. This suggests 15.85% year-over-year growth.
Image: Bigstock
DELL's CSG Revenues Rise: Is an Improving PC Market the Catalyst?
Key Takeaways
Dell Technologies (DELL - Free Report) AI prospects remain strong, with AI expanding from major cloud service providers to large-scale enterprise deployments and edge computing with PCs.
Dell Technologies is a prominent PC maker and is expected to benefit from the recovering demand driven by the PC-refresh cycle. The company is benefiting from the Windows 11 PC refresh cycle as many enterprise customers upgrade to new AI-capable Windows 11 devices, driving strong demand in the commercial segment. In the first quarter of fiscal 2026, CSG revenues were $12.50 billion, up 5% year over year.
DELL is also benefiting from an expanding partner base that includes NVIDIA, Microsoft, Meta Platforms and Imbue. In March, Dell Technologies and NVIDIA expanded their AI Factory collaboration, introducing new AI PCs, infrastructure, software, and services to accelerate enterprise AI adoption across various scales.
Dell Technologies recently partnered with Lowe’s to enhance customer and associate experiences by deploying advanced AI and PC technologies. Using Dell AI Factory with NVIDIA and high-performance Dell devices, Lowe’s is optimizing inventory, improving asset protection, and streamlining store operations across its network.
In March 2025, Dell Technologies and NVIDIA also expanded their AI Factory collaboration, introducing new AI PCs, infrastructure, software, and services to accelerate enterprise AI adoption across various scales.
DELL Faces Stiff Competition in the PC Market
Dell Technologies suffers from stiff competition in the PC market from the likes of HP (HPQ - Free Report) and Apple (AAPL - Free Report) .
HPQ is benefiting from a sustained focus on launching new and innovative products. The growing interest in generative artificial intelligence-enabled PCs, along with Windows 11 upgrades and a probable PC refreshment cycle, is likely to drive fresh demand for PCs in 2025.
The growing interest in generative AI-enabled PCs might give a fresh boost to HP’s PC demand in the years ahead. The company forecasted that 40-60% of all PCs will be AI PCs in the next three years. To make the most of the growing opportunities in this category, HP has launched several AI PCs this year and plans to continue to expand its AI PC portfolio.
Apple’s Mac business is benefiting from strong demand for M4, M4 Pro, and M4 Max chips. In March 2025, Apple expanded its Mac portfolio with the new MacBook Air powered by the M4 chip with up to 18 hours of battery life and a new 12MP Center Stage camera.
DELL’s Share Price Performance, Valuation and Estimates
DELL’s shares have risen 1.1% year to date, underperforming the broader Zacks Computer & Technology sector’s return of 1.6%.
DELL Stock Performance
Image Source: Zacks Investment Research
DELL stock is trading at a premium, with a forward 12-month Price/Sales of 0.77X compared with the Computer & Technology sector’s 6.36X. DELL has a Value Score of A.
DELL Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is pegged at $2.26 per share, which has increased 11.5% in the past 30 days. This indicates a year-over-year increase of 19.58%.
Dell Technologies Inc. Price and Consensus
Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote
The consensus mark for fiscal 2026 earnings is pegged at $9.43 per share, which increased 6.91% in the past 30 days. This suggests 15.85% year-over-year growth.
DELL currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.