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DELL
Benzinga
1 min

Dell Struggles To Protect Margins As Supply Chain Costs Mount

1. Dell's Q2 revenue rose 19% to $29.78 billion, aided by AI server demand. 2. Profit guidance fell short, leading to a 9.43% drop in shares. 3. Dell raised fiscal 2026 revenue outlook to $109 billion despite margin pressures. 4. JP Morgan and Goldman Sachs maintained bullish ratings with price forecasts up to $150. 5. Future growth hinges on stabilizing margins and successful AI demand management.

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FAQ

Why Bearish?

Despite revenue growth, missed profit expectations and margin pressure negatively impacted investor sentiment. Historical trends show similar cases where profit guidance misalignments lead to stock declines.

How important is it?

The article discusses significant revenue and profit changes that directly influence DELL's market performance.

Why Short Term?

Investor sentiment may improve if margin recovery stabilizes, but immediate reactions are typically more pronounced.

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