Dell shares returned 233.2% over the past year versus 16.5% for the S&P 500, yet they fell 11.4% over the past month. Across seven market sell-offs, Dell has dropped 27.1% on average versus 14.5% for the S&P 500, falling 46% in the 2020 COVID-19 crash and 39% in mid-2024, when recovery took 13.8 months. Dell recognized $16.4 billion of AI server revenue in fiscal Q2 2027 and reported a record $95 billion AI backlog, while operating margin over the latest twelve months rose to 9.6% from 7.1%. However, gross margin fell from 23.4% (twelve months to August 2023) to 19.8% (twelve months to July 2026), input costs keep rising with DRAM as the main constraint, and the Client Solutions Group's operating income rate is expected to moderate to roughly 6% in fiscal Q3 2027. Investors should watch that rate when Dell reports fiscal Q3 2027 results, expected in November 2026.
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