Dell Forecasts Steady Growth Despite Investor Hopes for Faster AI Boost

Dell reiterated its long-term revenue growth forecast of 3-4% annually, disappointing some investors who expected higher growth from AI.

Dell forecast long-term adjusted EPS growth of 8% or more.

Dell announced plans to repurchase another $5 billion in stock on top of a $5 billion buyback started in 2021.

Dell said it will raise its dividend by 10% or more annually through 2028 as part of a plan to return over 80% of adjusted free cash flow to shareholders.

Dell's share price has rallied nearly 20% this year on optimism about its role in enabling AI, though revenue growth suggests the AI boost could take longer to fully materialize.