Dell Technologies (DELL) Q3 Earnings Imminent - Options Traders Position for 9.35% Market Shock
Tech giant braces for earnings earthquake as derivatives market signals major volatility ahead.
The Options Gamble
Traders are loading up on positions that anticipate nearly double-digit percentage moves - either direction. The 9.35% implied volatility suggests Wall Street's crystal ball is particularly cloudy this quarter.
Earnings Season Roulette
Another quarter, another round of corporate confessionals where executives spin numbers into narratives. Because nothing says 'stable investment' like betting on which way a stock will jump after hours.
Tech Sector Domino Effect
Dell's performance could ripple through hardware and enterprise software peers. When elephants dance, the mice better watch their feet - or their portfolios.
The Final Tally
Markets hate uncertainty but love drama. Dell's about to deliver both in one earnings-packed afternoon. Place your bets - the house always wins anyway.
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Wall Street expects Dell to report earnings per share of $2.47 for Q3 FY26, reflecting a 16% year-over-year growth. Revenue is expected to rise 11.3% to $27.13 billion.
Analysts’ Views Ahead of Dell’s Q3 Earnings
Heading into Q3 FY26 results, Bank of America Securities analyst Wamsi Mohan reduced his price target for Dell to $160 from $170 and reiterated a Buy rating. The 5-star analyst thinks that investors will mainly focus on margin resilience heading into calendar year 2026 amid the significant rise in memory costs. Mohan’s cost analysis indicates that higher DRAM/NAND prices will impact Dell’s Fiscal 2027 gross margin, operating margin, and EPS by 129 basis points (bps), 76bps, and $0.65, respectively.
Meanwhile, Mohan expects Dell’s Q3 results to be in line with the guidance and the Street’s expectations, with “little to no impact” from higher DRAM and NAND prices due to the timing of inventory. He expects Q4 FY26 operating margin and EPS to be impacted by 56 bps and $0.01, respectively, as the company is expected to adjust pricing and reduce its operating expenses to offset higher memory costs. Overall, Mohan is bullish on Dell as he believes that the company is “in early stages of AI adoption.” He expects the company to gain from tailwinds related to PC refresh and AI PCs.
Meanwhile, Morgan Stanley analyst Erik Woodring double-downgraded Dell stock from Buy to Sell and lowered the price target from $144 to $110. The top-rated analyst views Dell as one of the “hardest hit stocks” from increased memory costs in his original equipment manufacturers (OEM) coverage.
AI Analyst Is Cautious on DELL Stock Ahead of Q3 Print
Interestingly, TipRanks’ AI Analyst has assigned a Neutral rating to DELL stock with a price target of $129, indicating 5.30% upside potential. The AI analyst’s rating reflects Dell’s favorable insights from the earnings call and robust revenue growth, particularly in the AI and ISG (Infrastructure Solutions Group) segments. However, high leverage and negative equity on the balance sheet pose financial risks.
Also, the AI analysis noted that technical indicators suggest bearish momentum, and valuation metrics indicate a fair but not compelling valuation.
Is DELL Stock a Good Buy Now?
Currently, Wall Street has a Moderate Buy consensus rating on Dell Technologies stock based on 12 Buys, four Holds, and one Sell recommendation. The average DELL stock price target of $167.14 indicates 36.4% upside potential. DELL stock has risen 6.3% year-to-date.
