The company, whose major customers include Elon Musk’s xAI and CoreWeave, announced on Tuesday that it now expects adjusted earnings per share (EPS) to grow at least 15% annually over the next four years—nearly double its previous target of around 8%. Dell also raised its compounded annual revenue growth forecast to between 7% and 9%, up from its earlier projection of 3% to 4%.
The stronger outlook underscores Dell’s growing dominance in the high-performance server market, driven by rising demand for the powerful computing infrastructure required to support AI models such as ChatGPT. The surge in AI investment has turned Dell, alongside rivals Hewlett Packard Enterprise (HPE) and Super Micro, into one of the biggest beneficiaries of the generative AI revolution.
Analysts say Dell’s scale and established supply chain give it a competitive edge as AI hardware production ramps up globally.
“Dell has a volume advantage due to its scale, established supply chain, and relationships with major buyers compared to rivals like Super Micro,” said Jacob Bourne, analyst at eMarketer.
The company reiterated its third-quarter and annual guidance, reflecting confidence in sustained momentum. In August, Dell had raised its forecast for AI server shipments to $20 billion for fiscal 2026, citing exceptional customer demand.
“Customers are hungry for AI and the compute, storage, and networking we provide to deploy intelligence at scale,” said CEO Michael Dell, adding that the company was still in the early stages of AI adoption despite two years of rapid progress.
Dell’s Infrastructure Solutions Group (ISG)—which includes its server, storage, and software businesses—is now projected to grow revenues between 11% and 14% annually, compared to the earlier range of 6% to 8%. The Client Solutions Group (CSG), which covers personal computers, is expected to maintain a modest growth rate of 2% to 3%, as fierce competition continues to challenge the consumer segment.
Industry observers note that the company’s revised outlook may help ease investor concerns about profit margins amid intense competition in AI server manufacturing and rising production costs. Still, Dell’s strategic bet on AI infrastructure positions it as a key enabler of the next phase of digital transformation across industries.