Dell or Palo Alto: Which Earnings Report Will Expose Overvaluation?

Dell Technologies and Palo Alto Networks are two tech stocks scheduled to report earnings on September 1, 2026. Dell's price-to-earnings ratio stands at 36, with a dividend yield of 0.6% and a consensus target price of $510.26, while Palo Alto Networks has a much higher trailing P/E ratio of 323 and no dividend. Despite beating estimates for five consecutive quarters, Palo Alto Networks' stock has seen a negative average day-of move of 3.73%, indicating that sellers emerge regardless of results.

Dell, on the other hand, posted a 64% EPS surprise in its last quarter, with revenue of $43.8 billion. Analysts advising institutional clients have given Dell five Strong Buy, 14 Buy, and eight Hold ratings, while Palo Alto Networks has received 11 Strong Buy, 34 Buy, and nine Hold ratings, with one Sell rating. Both stocks have doubled or more year-to-date, but only one is considered suitable for retirement portfolio allocation.

Dell Technologies offers a 0.6% dividend yield and a $10 billion buyback authorization, with guidance for revenue between $165 billion and $169 billion in FY27. In contrast, Palo Alto Networks is a cybersecurity platform with broader coverage and heavier top-tier buys, but its ratings enthusiasm has not been matched by target-price math.

The biggest risk to owning Dell is the potential for gross margin compression from AI server mix, memory as the primary supply constraint, and the sheer height of the bar set by analysts. For Palo Alto Networks, key numbers to watch on earnings day are Next-Generation Security annual recurring revenue and remaining performance obligation.