Dell Technologies Inc. recently announced an optimistic forecast for its long-term revenue and profit growth. This update caused its stock price to rise 6% during premarket trading.
Dell’s Revenue Growth Forecast Enhancements
In a meeting with analysts, Dell disclosed that it anticipates annual revenue growth of 7% to 9%. This is a significant improvement from its previous estimate of 3% to 4%, shared in August.
Earnings Per Share Increase
The company has also adjusted its expectations for diluted earnings per share (EPS). Dell now projects EPS growth of at least 15%, up from an earlier expectation of 8% or more.
Driving Factors
Dell attributes this positive outlook to the rapid advancements in technology. The firm is particularly focusing on developments in artificial intelligence (AI).
- Annual revenue growth: 7% to 9%
- Previous forecast: 3% to 4%
- EPS growth: At least 15%
- Previous EPS estimate: 8% or better
Position as AI Infrastructure Leader
According to Dell, its range of services, including engineering and deployment, positions the company as a leader in AI infrastructure solutions.
This revised forecast and stock increase signal a confident outlook for Dell Technologies as it navigates the evolving tech landscape.
