"The company, whose customers include Elon Musk's AI startup xAI and CoreWeave, lifted its expectations for annual growth in adjusted earnings per share to at least 15% from around 8%. Dell also said it expects compounded annual revenue growth between 7% and 9% for the next four years, up from its prior view of 3% to 4%. Its strong profit growth expectation may also ease investor concerns about the margin hit from competition in AI servers and the high costs of building the products."
"Dell expects long-term compounded annual revenue growth of 11% to 14% for the infrastructure solutions group - home to its storage, software and server offerings. That compares with its earlier expectations of 6% to 8%. The company continues to expect revenue growth of 2% to 3% for its client solutions group, which includes personal computers. Strong competition in the consumer market has hit the business in recent years, even as Dell keeps a strong position among enterprise clients."
Dell raised its annual adjusted earnings-per-share growth target to at least 15% for the next four years, up from about 8%, and increased projected compounded annual revenue growth to 7–9%, above its prior 3–4% view. Surging demand for servers to run generative AI workloads is driving the upgrades, with customers including xAI and CoreWeave. Dell raised its AI server shipments expectation to $20 billion for fiscal 2026. The company forecasts long-term revenue growth of 11–14% for its infrastructure solutions group and 2–3% for its client solutions group, while citing scale and supply-chain advantages versus rivals.
Read at Fast Company
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