Dell sharply improved its revenue and profit forecasts. Shares jumped
The company attributed the revision to the acceleration of technological change, especially in the field of AI
Dell Technologies, a maker of computers, servers and other equipment for deploying AI systems, significantly improved its long-term outlook in a meeting with analysts. The company said it now expects revenue growth of 7-9% in fiscal 2026, up from an earlier forecast of only a 3-4% increase. Adjusted earnings per share will grow by at least 15%, management expects. The previous estimate called for earnings expansion of 8% or more.
Dell shares rose 5% at the opening of trading on October 7, crossing the mark of $150 per paper. This is the highest level since April 2024. Since the beginning of the year, the company's value has added about 27%.
Dell explained that the increase in the forecast is due to the fact that the manufacturer is capitalizing on the opportunities presented by the "unprecedented speed of technological change," especially in the field of artificial intelligence. It also emphasized that the company's engineering, infrastructure, ecosystem and other services enable it to position itself as a leader in AI infrastructure.
This article was AI-translated and verified by a human editor
