Dell Raises Growth Outlook: Higher Revenue and EPS Targets Reflect Bold Vision
Key Takeaway: Financial Targets Are Now Far More Ambitious
Dell Technologies (NYSE:DELL) made headlines today at its Securities Analyst Meeting by substantially increasing its long-term financial framework. The company now projects annual revenue growth of 7-9%, nearly doubling its prior target, and expects annual non-GAAP diluted earnings per share (EPS) to grow by at least 15%, compared to a previous 8% or more. Alongside these new metrics, Dell also extended its 10% annual dividend growth commitment through fiscal 2030.
New Financial Targets at a Glance
The table below highlights the most notable changes in Dell’s long-term outlook compared to its earlier guidance:
| Metric | Previous Target | Updated Target |
|---|---|---|
| Annual Revenue Growth | 3–4% | 7–9% |
| Annual Non-GAAP Diluted EPS Growth | 8% or better | 15% or better |
| Net Income to Adjusted Free Cash Flow Conversion | 100% or better | 100% or better |
| Shareholder Returns via Buybacks & Dividends | Over 80% of adjusted free cash flow | Over 80% of adjusted free cash flow |
| Dividend Growth Commitment | 10% or more annually through FY28 | 10% or more annually through FY30 |
Growth Drivers: AI Infrastructure and Capital Returns Take Center Stage
Dell credits its enhanced financial outlook to several core factors. Over the last five years, Dell has nearly doubled its non-GAAP diluted EPS and believes the runway is set for it to double again. More than $14.5 billion has been returned to shareholders since FY23 through buybacks and dividends, and the company promises to return over 80% of future adjusted free cash flow as well.
What’s behind this acceleration? Dell is leaning into its strengths as a global provider of technology infrastructure—particularly in the high-growth artificial intelligence space. Leadership claims its comprehensive engineering, services, and ecosystem—coupled with a vast supply chain and global reach—uniquely positions Dell as a front-runner in AI solutions for enterprises and governments alike.
Leadership Emphasizes Execution and Market Opportunity
Michael Dell, Chairman and CEO, expressed confidence in the demand for compute, storage, and networking that support large-scale AI deployments. Jeff Clarke, Vice Chairman and COO, underscored the scale of opportunity by noting Dell’s growing AI-related business to $20 billion in just two years. Interim CFO David Kennedy added that Dell’s increased EPS targets reflect a path to once again double EPS, backed by operational consistency and robust cash flows.
Takeaway: Ambitious Goals Supported by Clear Commitments
While all projections are forward-looking and subject to change based on evolving global and economic conditions, Dell’s updated financial targets send a clear message to investors: The company aims to be a growth leader not only in technology but in capital allocation as well. For those tracking AI infrastructure plays and disciplined capital returns, Dell is signaling confidence and scale well into the next decade.
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