TLDR
- Dell raised its annual revenue growth target to 7-9%, up from 3-4% previously
- The company nearly doubled its annual EPS growth target to 15% or better
- CEO Michael Dell cited strong customer appetite for AI-related products and services
- Dell extended its commitment to grow quarterly dividends by 10% or more annually through fiscal 2030
- Analysts at JPMorgan and Citi raised their price targets following the announcement
Dell Technologies shares surged 8.3% in morning trading after the computer hardware and IT solutions company raised its long-term financial outlook. The move came as the company cited strong demand for its artificial intelligence hardware products.
The company boosted its expected annual revenue growth target to a range of 7% to 9%. This represents a major increase from its previous forecast of 3% to 4%.
Dell also raised its earnings expectations. The company nearly doubled its annual non-GAAP diluted earnings per share growth target to 15% or better.
CEO Michael Dell pointed to customer demand as the driving force behind the revised outlook. According to Dell, customers showed a strong appetite for the company’s AI-related products and services.
The company didn’t stop at revenue and earnings projections. Dell extended its dividend growth commitment as well.
The computer maker pledged to grow its quarterly dividend by 10% or more each year through fiscal 2030. This gives investors clarity on shareholder returns for the next several years.
Analyst Response
Wall Street responded positively to Dell’s announcement. Analysts at JPMorgan and Citi raised their price targets for the stock following the news.
JPMorgan had previously issued a note reiterating an ‘Overweight’ rating on Dell. The firm highlighted Dell’s ‘AI Server leadership’ position in the market.
The timing of Dell’s outlook revision comes as the company prepares to launch new products. Dell announced its new PowerEdge XR8720t server designed to handle demanding telecom and edge workloads.
Stock Performance
Dell’s stock has performed well this year. Shares are up 40.4% since the beginning of 2025.
The stock reached $163.58 per share during the session. This marked a new 52-week high for the company.
Investors who bought $1,000 worth of Dell shares five years ago would now be looking at an investment worth $2,382. That represents a total return of 138.2% over the period.
The stock has experienced volatility throughout the year. Dell shares have had 20 moves greater than 5% over the last year alone.
Today’s 8.3% jump represents one of the larger single-day moves for the stock. However, the market appears to view this as meaningful news rather than a fundamental shift in how investors perceive the business.
The company’s market capitalization now stands at approximately $98.01 billion. Average trading volume for the stock is around 6.2 million shares.
Technical indicators currently show a buy signal for Dell stock. The year-to-date price performance sits at 32.83% according to some data sources.
The PowerEdge XR8720t server is scheduled for global release in the first quarter of 2026. The company designed this product to simplify infrastructure and prepare networks for more AI-driven tasks.
Dell’s AI business continues to drive growth across its product portfolio. The revised financial targets reflect the company’s confidence in sustained demand for AI-related hardware and solutions.
