Dell’s Q1 revenue surged 88% year-over-year to $43.8 billion, prompting Morgan Stanley to review its Underweight rating and $170 price target.
Morgan Stanley acknowledged an error in its Dell Technologies (DELL) outlook after the company reported record first-quarter fiscal 2027 earnings. The firm, which previously held an Underweight rating and a $170 price target, is now reviewing its stance following a 32.76% single-day stock surge to $420.91.
Dell’s results included $43.8 billion in revenue, up 88% year-over-year, and diluted EPS of $5.24, a 282% increase. Cash flow from operations hit $4.1 billion, another record. The performance exceeded expectations, with Morgan Stanley calling it one of the most impressive quarters in its hardware coverage history.
The stock has climbed 236.88% year-to-date, reflecting investor confidence in the company’s growth trajectory. Analyst Erik Woodring, who authored the initial rating, publicly admitted the misjudgment in a research note.