On July 17, 2025, SLTA IV (GP), L.L.C., a director and 10 percent owner of Dell Technologies Inc. (NYSE:DELL), sold 2,824 shares of Class C Common Stock at $123.50 each. This transaction comes amid a period of financial challenges and opportunities for Dell, a leading technology company known for its computer hardware and software solutions.
Dell Technologies is currently grappling with a decrease in its gross margin, which fell by 80 basis points to 21.6% in the first quarter of fiscal 2026. This decline is largely due to intense competition and pricing pressures, particularly impacting the Client Solutions Group segment. Additionally, an unfavorable geographical mix in traditional servers has contributed to this margin pressure.
Despite these challenges, Dell's Infrastructure Solutions Group (ISG) has demonstrated resilience. The ISG reported a 12% year-over-year revenue increase, reaching $10.3 billion. This growth was driven by a record $6.3 billion in server and networking sales, fueled by strong demand for AI. Dell plans to ship $7 billion in AI servers in the second quarter, expecting a 10% quarter-over-quarter growth in gross margin dollars.
Dell's stock price recently closed at $123.57, a 1.69% decrease from the previous day, contrasting with gains in the broader market. However, over the past month, Dell's stock has risen by 8.42%, outperforming the Computer and Technology sector's 7.22% gain and the S&P 500's 4.51% rise. This indicates investor confidence despite short-term fluctuations.
Investors are eagerly awaiting Dell's earnings report on August 28, 2025. The company is expected to report an earnings per share (EPS) of $2.28, a 20.63% increase from the same quarter last year. The consensus estimate for Dell's revenue is $29.14 billion, marking a 16.45% increase. Dell's market capitalization is approximately $84.1 billion, with a trading volume of 3,758,567 shares on the NYSE.
