Dell Technologies (DELL) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Strategic outlook and financial guidance

• Forecasts over 20% revenue growth and 25% EPS growth for fiscal 2027, driven by strong AI server momentum and robust core PC, server, and storage businesses.

• Maintains a $43 billion AI backlog, with record Q4 revenue and EPS, and prudent near-term core business guidance.

• Four key levers for EPS growth: revenue, margin rate (especially from IP storage), OpEx management, and consistent capital return to shareholders.

• Plans to continue aggressive share repurchases and maintain a strong cash return posture.

AI server business and differentiation

• AI server orders reached $34 billion in the quarter, with a $43 billion backlog and a growing pipeline; business expected to double, targeting $50 billion.

• Enterprise AI customer base grew from 3,300 to over 4,000 in 90 days, with the fastest growth in the enterprise segment.

• Differentiation comes from engineering standards, reliability, and integration into customer data center design and deployment.

• Most AI server deployments include attached services and storage, with Project Lightning set for production in the first half of the year.

• Accelerated market demand and execution have pulled forward growth targets by three years, building a strong reputation for large-scale deployments.

Core business performance and market dynamics

• Traditional server market remains robust, with high single-digit growth guided and strong demand despite price increases.

• PC business guided to low single-digit revenue growth, with a slow Windows 11 refresh and ongoing price elasticity management.

• CSG business expanded TAM with new products in commercial, education, and consumer segments, leveraging systematic pricing tools for rapid market response.

• Storage business at an inflection point, with Dell IP storage portfolio driving multi-quarter growth and margin expansion.

• Project Lightning enhances storage offerings for AI workloads, supporting broader enterprise solutions.