Shares of Dell Technologies (NYSE:DELL) surged about 7% premarket on Tuesday after the company raised its long-term financial targets at its Securities Analyst Meeting.
The company now expects annual revenue growth to be between 7% and 9%, compared to the previous estimate of 3% to 4%.
Annual Non-GAAP EPS growth is now expected at 15% or better, versus a prior estimate of 8% or better, nearly double the previous target.
Dell extended commitment to grow its quarterly dividend 10% or more annually through fiscal 2030, compared to prior target of 10% or more annually through FY 2028.
Dell maintained the target of returning over 80% of adjusted free cash flow to shareholders via share repurchases and dividends.
“Customers are hungry for AI and the compute, storage and networking we provide to deploy intelligence at scale. We’re successfully translating that demand into growth and strong cash flow that we’ve largely returned to shareholders,” said Dell’s Chairman and CEO Michael Dell.
The company reaffirmed its financial guidance for fiscal 2026 third quarter and full year that was provided on Aug. 28 during its second quarter results.
“We’re actively driving the changes that are shaping the future of AI infrastructure as evidenced by growing AI into a $20 billion business in two years,” said Jeff Clarke, Dell’s vice chairman and COO.
David Kennedy, Dell’s interim CFO, said the company returned $14.5B to shareholders since its dividend program began in FY23.