Dell Technologies Soars on AI Growth, Dividend Hike

0:00From Durham, this is your March 3rd update. Dell Technology Stock jumped 22% after smashing fourth-quarter expectations with revenue of $33.4 billion. Up 39% from last year, and adjusted earnings per share of $3.89. Full-year revenue hit $113.5 billion, while earnings per share rose 27% to $10.30. Since, the company also gave up beat guidance for fiscal 2027, projecting revenue between $138 billion and $142 billion. Meanwhile, Dell's artificial intelligence business drove much of the momentum with a record $43 billion in AI server backlog at C. Year end and $64.1 billion in total, AI orders for fiscal 2026. In the fourth quarter alone, AI orders reached $34.1 billion, and server revenue came in at $9 billion.

1:01Analysts reacted swiftly with JP Morgan raising its price target to $165 from $155 while keeping. In overweight rating, citing Dell's strong position in the AI compute boom. Out of 12 analysts covering the stock, 10 rated a buy with an average target of $160, suggesting about 8%. Upside from recent levels. On top of that, Dell boosted its annual dividend by 20% to $2.52 per share and approved a new $10 billion. Share repurchase program. The company returns $7.5 billion to shareholders last year through buybacks and dividends. Backed by $11 billion in cash flow. Looking ahead, Dell expects AI server revenue to double to $50 billion next year, though a memory chip shortage could squeeze margins on PCs and traditional servers. Still, strong free cash flow and AI growth point to double digit earnings increases through fiscal 2031.

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