Dell Technologies (DELL) Investor Update summary

Strategic Priorities and Financial Framework

• Long-term targets raised to 7%-9% revenue growth, 15%+ EPS growth, and 100%+ net income to adjusted free cash flow conversion, with over 80% of adjusted free cash flow targeted for shareholder returns through FY 2030.

• Commitment to grow quarterly dividend by 10% or more annually extended through FY 2030, with a focus on maintaining investment grade rating and disciplined M&A.

• Over $14.5 billion returned to shareholders since FY23, with programmatic and opportunistic share buybacks.

• EPS growth to be achieved through durable revenue growth, gross profit expansion (especially in storage and AI), operational efficiency, and continued share repurchases.

• FY26 non-GAAP guidance: operating income of $9.2–$9.6B and diluted EPS of $9.30–$9.80.

AI-Driven Transformation and Market Opportunity

• AI is seen as a massive, early-stage opportunity, with AI-related infrastructure and services expected to drive significant growth across data center, edge, and PC segments.

• AI CapEx forecasts have doubled in two years, with inference workloads and token generation driving exponential compute and storage demand.

• AI business has grown to $20 billion in two years, positioning the company as a leader in AI infrastructure solutions.

• Over 3,000 enterprise customers have engaged in AI Factory deployments, with a robust pipeline and repeat business indicating strong momentum.

• Enterprises are rapidly adopting GenAI, with 85% planning on-premises deployment and 67% allocating incremental budgets for AI.

Competitive Positioning and Operational Execution

• Differentiation comes from deep engineering expertise, rapid scale deployment, and a comprehensive portfolio spanning compute, storage, networking, and services.

• First-to-market achievements in AI server racks and advanced cooling solutions, with strong partnerships across the AI ecosystem.

• Supply chain scale and long-term supplier relationships ensure component availability for both compute and storage.

• Internal AI deployment has driven operational efficiency, with ongoing investment in R&D and productivity tools to support growth without proportional OpEx increases.

• Focus remains on customer-centricity, innovation, and global service capabilities.