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2h ago

Dell Lifts Long-Term Growth Targets on AI Server Demand

The company credits surging AI infrastructure orders, pledging heavy cash returns to investors.

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3D printed clouds and figurines are seen in front of the Dell logo in this illustration taken February 8, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • Dell now projects 7%–9% annual revenue growth and at least 15% adjusted EPS growth, up from prior targets of 3%–4% and about 8%, respectively.
  • Management cited strong demand for AI compute, storage and networking, highlighting Dell’s role building systems around Nvidia chips for customers such as xAI and CoreWeave.
  • The company reaffirmed plans to return over 80% of adjusted free cash flow to shareholders and to raise its dividend by 10% or more each year through fiscal 2030.
  • Near-term guidance was reiterated, including fiscal Q3 revenue of $26.5 billion to $27.5 billion with adjusted EPS of $2.45, and fiscal 2026 revenue of $105 billion to $109 billion with adjusted EPS of $9.55.
  • Dell shares rose 6%–7% in premarket trading after the update, as investors weighed growth prospects against ongoing margin pressure from competition and higher AI server costs.