Dell Technologies (DELL) Investor Update summary

Financial Targets and Capital Allocation

• Long-term revenue growth target raised to 7%-9% and EPS growth to 15%+ through FY 2030, with a commitment to grow quarterly dividends by 10%+ annually and return over 80% of adjusted free cash flow to shareholders.

• Net income to adjusted free cash flow conversion expected at 100% or better, supported by strong cash generation and disciplined capital allocation.

• Over $14.5 billion has been returned to shareholders since the dividend program began in FY23, through share repurchases and dividends.

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

• Programmatic and opportunistic share buybacks, disciplined M&A, and a focus on maintaining investment grade ratings underpin capital allocation.

AI and Infrastructure Growth Strategy

• AI is a central growth driver, with enterprise adoption accelerating, over 3,000 AI Factory deployments, and the AI business reaching $20 billion in two years.

• ISG long-term revenue CAGR target raised to 11%-14%, reflecting strong AI server demand and storage innovation.

• Engineering and rapid deployment capabilities, including custom solutions for large-scale customers, are key differentiators.

• Storage and networking attach opportunities are expected to grow as enterprises move from POC to production in AI.

• ISG is positioned to capture AI-driven growth, with leadership in compute and storage, and a focus on modernizing data centers.

Client Solutions and PC Business Outlook

• PC refresh cycle remains a significant opportunity, with over 500 million units needing upgrades due to Windows 10 end of life.

• Strategy focuses on regaining share in commercial PCs, improving consumer offerings, and expanding peripherals sales.

• Premium PC segment remains a priority, but aggressive participation in the broader 75% of the market is planned.

• CSG maintains strong commercial market share, with a focus on premium segments and growth in AI PCs and peripherals.