Dell Technologies recently issued guidance for its Q1 and full year 2026 earnings, projecting a robust 8% year-over-year revenue increase, though with a predicted 6% dip in Q1 earnings per share. The company's Q4 2025 earnings saw revenue grow by 7% and net income increase by 27%. Despite these positive results, Dell's stock price fell 7.76% over the past month. This decline occurred amid wider market turbulence, including remarkable drops in the S&P 500 and Nasdaq, largely due to the impact of newly imposed U.S. tariffs. Concerns surrounding global trade and economic stability have put pressure on stocks, particularly those in the technology sector, as investors assess potential repercussions. Additionally, despite a 10 billion USD increase in Dell's buyback plan, offering an appealing long-term value proposition, current market conditions continue to weigh on short-term investor sentiment, as seen across the tech-heavy indices.

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Over the last five years, Dell Technologies achieved a remarkable total shareholder return of very large proportions, amounting to approximately 460.53%. Throughout this period, Dell made strides in earnings growth, notably outpacing the tech industry's average with a 43.5% growth over the past year compared to the industry's 23.9%. However, Dell's 1-year return lagged behind both the US Tech industry and the broader US Market. Furthermore, despite Dell having a Price-To-Earnings ratio considered good value compared to the global tech industry average, the company's high debt levels pose significant financial management challenges.

Highlights of Dell's performance also include its recent quarterly dividend increment to US$0.5250 per share and the expansion of its share buyback plan, which contributed to its long-term value offering. Additionally, Dell engaged in strategic collaborations, such as with Kyndryl for enhanced AI cloud services, underlining its commitment to innovation and future-ready solutions. The company's robust product offerings, including AI-driven solutions, played a vital role in sustaining its competitive edge during this period.

• Discover whether Dell Technologies is fairly priced, undervalued, or overvalued in our comprehensive valuation breakdown.
• Uncover the uncertainties that could impact Dell Technologies' future growth—read our risk evaluation here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:DELL.

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