Evercore added Dell Technologies to its Tactical Outperform list ahead of January-quarter earnings, forecasting the hardware maker will surpass revenue and earnings estimates. The firm anticipates $31.4 billion in revenue and $3.52 EPS, citing robust demand for AI servers and traditional hardware.

Dell's Infrastructure Solutions Group (ISG) segment benefits from $18.4 billion backlog and guidance for $25 billion in FY26 AI server revenue, with Evercore projecting $9 billion in Q1 AI revenue. Early market share gains (100 basis points in Q4) and dynamic pricing strategies aim to offset gross margin pressures expected to dip to 20.2%, down 410 basis points YoY. Evercore lowered its price target to $160 but maintained its Outperform rating, emphasizing long-term growth potential from AI server expansion and operating leverage.