TMTPOST --   Dell Technologies stock jumped as much as 6.1% and closed 3.5% higher on   Tuesday. Shares   extended their   two-day rally to   7.2%   and hit   highest close in   a year after the   company substantially lifted its   long-term   top and bottom line   outlook, highlighting   strong   demand for servers   powering artificial   intelligence   ( AI )   workloads.

Credit：Dell

Dell   more   than doubled its   revenue growth expectation   for the next four years,   and   earnings per share ( EPS )   growth guidance nearly doubled   for the same period. Dell   saw annual revenue from   the fiscal year 2027 starting next March to the fiscal 2030   to expand between   7% and 9%,   up from the previous target   of 3%   to 4%,   according to the long-term financial framework the company   disclosed   during its Securities Analyst Meeting on   Tuesday.  

Dell   said it has nearly doubled non-GAAP diluted EPS over the past five years and expects to double it again, targeting at least 15% of non-GAAP diluted EPS growth, compared with the prior   growth forecast   for   8% or higher.  

The Round Rock,   Texas-based company   reiterate   its target of   returning over 80% of adjusted free cash flow to shareholders via share repurchases and dividends.   It extended its commitment to increase   its   quarterly   dividend by 10%   or more annually through fiscal 2030.

Dell has returned $14.5 billion to shareholders since its   dividend program began in fiscal 2023,   and has roughly doubled EPS   over the past five years, said roughly doubled EPS, said,   David Kennedy, interim Chief Financial Officer.

Dell in a   statement said it   is capitalizing on the unprecedented pace of change in technology, especially in AI, and is well positioned with a leading portfolio from data center infrastructure to personal computers ( PCs ) .  

THe Chief Operating Officer Jeff Clarke suggested the   guidance   hike   resulted from the   company ’ s undervaluation of AI   demand   in 2023."We were all wrong how big we thought the AI market was two years ago, and it ’ s nothing but bigger,"   he   said.

"Customers are hungry for AI and the compute, storage and networking we provide to deploy intelligence at scale. We ’ re successfully translating that demand into growth and strong cash flow that we ’ ve largely returned to shareholders," said chairman and CEO Michael Dell. "As AI continues to expand into businesses and governments around the world, the opportunity ahead is massive."   

Dell on Tuesday also reconfirmed its financial guidance for fiscal 2026 Q3 and full year that was provided on August   28.  

Dell ’ s   revenue and   EPS beat Wall Street   anticipation   for its second fiscal   quarter ended August 1.   It   raised the full year   outlook   for revenue to be $107 billion at its   midpoint   and   diluted   EPS   to $9.55   at the midpoint, better   than analysts estimated   $104.6   billion and $9.38 per share.  

Dell ’ s   EPS   guidance for   the third fiscal quarter   of $2.45   fell short of expected $2.55,   though   its revenue forecast   of $27   billion topped estimated   $26.1 billion.   Dell said that part of the reason its profit forecast is concentrated in the fourth quarter of 2025 is due to seasonality, particularly in its storage business.  

Dell ’ s   updated   annual   guidance may ease investor   concerns   about the   margin squeeze   from competition in AI   servers and   the high costs   of   building   the products.   Dell is one of Nvidia   Corp. ’ s key customers. Dell buys chips from the AI chip giant   and builds computers around them, which it sells to end-users such as   Elon Musk ’ s startup   xAI   and   CoreWeave, a cloud service.

Dell in   the financial report on August 28   disclosed   it shipped $10 billion in AI servers in its past two quarters.   It   said it plans to ship $20 billion of   AI   servers   in   the fiscal year 2026, double   what   it sold in the   previous year.