Dell Technologies ($DELL) Soars: AI Demand Fuels Raised Long-Term Targets and Explosive Revenue Growth

AI revolution sends Dell stock skyrocketing as demand outpaces even the most optimistic projections.

The Infrastructure Gold Rush

Enterprise clients scramble for Dell's AI-optimized servers—orders pile up faster than the company can fulfill them. Data center divisions report unprecedented backlog growth as corporations race to deploy generative AI capabilities.

Numbers Don't Lie

Revised long-term targets smash previous guidance—revenue projections climb steadily quarter after quarter. The AI infrastructure boom shows no signs of slowing, with Dell positioned as primary beneficiary of the corporate AI arms race.

Wall Street's Favorite Hardware Play

Analysts scramble to update models while quietly wondering if this time really is different—or just another tech cycle dressed in AI clothing. The stock's momentum continues defying skeptics who remember when 'long-term targets' actually meant something beyond next quarter's earnings call.

Dell transforms from legacy hardware vendor to AI infrastructure kingpin—proving sometimes the old dogs learn the new tricks fastest.

TLDR

• Dell ($DELL) stock climbed 5.63% pre-market to $153.99 after raising long-term growth targets.
• Annual revenue growth now projected at 7–9%, up from 3–4% previously.
• EPS growth target doubled to 15% or better, reflecting strong profitability outlook.
• Dell plans to return over 80% of adjusted free cash flow via dividends and buybacks.
• Company reaffirmed fiscal 2026 Q3 and full-year guidance amid booming AI demand.

Dell Technologies Inc. ($DELL) stock traded at $145.76, up 3.57% at the close on October 6, before surging 5.63% pre-market to $153.99 after the company unveiled ambitious new long-term growth goals during its Securities Analyst Meeting.

Dell Technologies Inc. (DELL)

Chairman and CEO Michael Dell, along with other executives, announced that the company expects annual revenue growth of 7–9%, up from its prior forecast of 3–4%. Annual non-GAAP diluted EPS is expected to rise 15% or more, nearly double the earlier 8% target.

DELL JUST RAISED ITS LONG TERM OUTLOOK$DELL just said it is now guiding for 7-9% annual revenue growth through the next 5 years up from its prior guide of between 3-4%

Dell stock is moving higher in pre market trading 🟢 pic.twitter.com/J4reVjVn33

— Evan (@StockMKTNewz) October 7, 2025

Strengthening Financial Framework and Shareholder Commitment

Dell also reaffirmed its commitment to return over 80% of adjusted free cash FLOW to shareholders through share repurchases and dividends. Its dividend growth target remains at 10% or more annually through fiscal 2030, extending from the previous FY 2026 goal.

The updated framework reflects Dell’s strong financial discipline and ability to sustain profitability while expanding its global reach. Over the past five years, Dell has nearly doubled non-GAAP EPS, and management expects to double it again based on new growth expectations.

AI Infrastructure: The Core Growth Driver

Michael Dell said, “Customers are hungry for AI and the compute, storage, and networking we provide to deploy intelligence at scale.” The company’s strong positioning in AI infrastructure solutions, spanning from data center systems to PCs, gives it a competitive edge.

Vice Chairman and COO Jeff Clarke emphasized Dell’s ongoing transformation into an AI infrastructure leader, targeting $20 billion in AI-related revenue within two years.

Interim CFO David Kennedy highlighted that Dell has returned $14.5 billion to shareholders since FY2023, reflecting its consistent capital allocation and earnings strength.

Continued Execution and Market Outlook

The company reaffirmed its fiscal 2026 Q3 and full-year guidance, initially provided on August 28, 2025, signaling confidence in its near-term outlook.

Dell’s expanded strategy comes amid accelerating global demand for computing power to train and run AI models such as ChatGPT, fueling growth for infrastructure providers like Dell and Super Micro Computer.

Strong Long-Term Performance

Dell’s long-term returns have outperformed the broader market. As of October 6, 2025, the company posted a YTD return of 28.33%, with five-year gains of 363.24%, compared to the S&P 500’s 100.55%.

With strengthened financial targets, robust AI demand, and an expanding cash return policy, Dell Technologies appears well-positioned for sustained growth in the evolving AI-driven enterprise landscape.