Dell Doubles EPS Growth Target and Raises Revenue Outlook Amid Strong AI-Driven Momentum
Higher Growth Expectations: Revenue and EPS Targets Up Sharply
Dell Technologies took a bold step at its Securities Analyst Meeting, updating its long-term financial framework to reflect growing optimism around future growth. The company is now targeting annual revenue growth of 7% to 9%—almost double its prior range of 3% to 4%. More strikingly, the new target for annual non-GAAP diluted earnings per share (EPS) growth is set at 15% or better, compared to the earlier goal of 8% or better.
What’s fueling these upgrades? Executives point to strong momentum across Dell’s broad product suite, with special emphasis on the accelerating adoption of artificial intelligence (AI) infrastructure. "Customers are hungry for AI and the compute, storage and networking we provide to deploy intelligence at scale," said Chairman and CEO Michael Dell. The company’s commitment to AI as a major value driver is front and center in its revised guidance.
Shareholder Returns: Commitment Extended and Enhanced
Dell has also lengthened its promise of robust capital returns, extending its commitment to grow quarterly dividends by 10% or more annually through fiscal 2030—two years longer than its prior pledge. Over the past five years, Dell nearly doubled its non-GAAP EPS, and management is aiming for another doubling as it seeks to achieve 15%+ EPS growth moving forward. The company expects to return over 80% of adjusted free cash flow to shareholders through a mix of share repurchases and dividends.
This consistent capital return policy is already visible, with $14.5 billion sent back to shareholders since the dividend program launched in fiscal 2023.
| 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 (Repurchases & Dividends) | Over 80% of adjusted free cash flow | Over 80% of adjusted free cash flow |
| Dividend Growth Commitment | 10% or more annually through FY 2028 | 10% or more annually through FY 2030 |
AI Infrastructure Leads Dell’s Competitive Edge
Much of this new guidance reflects Dell’s focus on being an AI infrastructure solutions leader. Executives highlighted their position with a "leading portfolio from data center infrastructure to PCs," emphasizing the company’s strong engineering, deployment, ecosystem, and global services as key enablers of future growth. Vice Chairman Jeff Clarke cited Dell’s ambition to build AI into a $20 billion business in just two years as evidence of rapid execution and demand for enterprise-grade AI.
Dell’s operating model—which includes the industry’s largest go-to-market engine and supply chain scale—remains a core competitive advantage as AI solutions become increasingly mission-critical for both businesses and governments worldwide.
What This Means for Investors
The dramatic reset of Dell’s long-term targets signals a high level of management confidence and strong end-market demand—especially for AI infrastructure. Investors watching the hardware and enterprise technology landscape may want to keep Dell on their radar as it looks to double EPS yet again and return substantial capital to shareholders in the process. While these ambitions hinge on robust AI-driven growth and disciplined execution, the raised targets paint a clear picture: Dell is betting big on technology shifts—and putting cash behind that conviction.
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