Dell Technologies shared its strategy at the Morgan Stanley Technology Media & Telecom Conference 2026 on March 4. The company reported healthy financial results and stressed its focus on AI servers as a main growth area. Dell is positive about the future but also recognizes continuing challenges in the traditional market.
Key Takeaways
- Dell achieved over 20% revenue growth and 25% EPS gains in fiscal 2027.
- The AI server business is growing quickly, and Dell now holds a $43B backlog.
- Dell plans to give back more than 80% of its free cash flow to shareholders.
- The traditional PC market continues to face challenges, including slow Windows 11 adoption.
- Dell’s approach to capital management includes a large share repurchase program.
Financial Results.
- In fiscal 2027, Dell’s revenue and EPS grew by over 20% and 25%, respectively.
- Q4 achieved record revenue, and EPS benefited from a $43B AI backlog.
- Dell bought back 54 million shares last year, including 14.9 million in Q4.
- Dell expects 25% EPS growth this year and a strong Q1.
Operation Updates
- Dell’s $34B surge in AI server demand marks a record-high pipeline driven by enterprise appetite for scalable AI deployments.
- Dell expanded its enterprise AI customer base from 3,300 to over 4,000 within 90 days, indicating strong market momentum for its solutions.
- Strong engineering and advanced power solutions underpin Dell’s AI Server for success, supporting efficient delivery and performance.
- Project Lightning is on track for initial production and deployment in the year’s first half, aiming to rapidly address new customer needs.
- Demand for a dense IP storage portfolio grew by 12% last year, expanding margins.
Future Outlook
- Dell is focused on maintaining and growing its strong AI server pipeline, with a five-quarter plan to drive continued growth and meet new market needs.
- Dell aims to make FY2027 its strongest by leveraging AI, strengthening relationships, and driving innovation to address changing demand.
- To address the ongoing memory market cycle, Dell is implementing proactive decision-making processes by adapting operational strategies to capitalize on rapid market changes.
- Dell’s call is still to return more than 80% of its free cash flow to shareholders, and it has reached 84% since starting the program.
Q&A Highlights
Dell plans to actively pursue Grace Blackwell’s business opportunities and guarantee it can secure enough supply.
Dell is focusing on investments in its sales teams and engineering capabilities.
Dell’s Supply Chain is ready to meet its year-end targets.
For more details, see the full conference call transcript below.
Full Transcript Morgan Stanley Technology, Media & Telecom Conference 2026
Erik Woodring, Analyst, Morgan Stanley: Let’s get started here. Welcome back to Day 3, the afternoon of Day 3. My name is Erik Woodring. I lead the hardware coverage here at Morgan Stanley, and I’m delighted to be joined by Dell Technologies CFO David Kennedy.
Before we get started, a few things at my end:
- Please see the Morgan Stanley Research Disclosure website at morganstanley.com/research disclosures.
- If you have any questions, please contact Morgan Stanley Sales Representative.
From Dell’s perspective, statements in this presentation regarding future results and events are forward-looking and based on Dell Technologies’ expectations. In some cases, you can identify these statements by such forward-looking words as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “confidence”, “may”, “plan”, “potential”, “should”, “will”, and “would”, or similar expressions.
Risks, uncertainties, and other factors, including those in Dell Technologies’ ICC filings, may cause factual results and future events to differ materially from those the forward-looking statements express or imply. Dell Technologies does not undertake to update these statements. David is attending the TMT conference for the first time.
Source: Dell at Morgan Stanley Conference: AI Servers Drive Growth
