💻 DELL bets on the future of AI servers, raises dividend and announces record share buyback! 🚀
Dell Technologies $DELL released its fourth quarter fiscal year 2025 results last week and announced ambitious plans for further expansion in artificial intelligence. Although revenue missed Wall Street expectations , earnings per share beat consensus estimates, underscoring the strength of its data center and AI infrastructure business.
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DELL📊 Key Financial Results:
Revenue: $23.9 billion (vs. $24.55 billion expected)
Earnings per share (adjusted): $2.68 (vs. $2.53)
Net profit: USD 1.53 billion (vs. USD 1.21 billion in the previous year)
Operating cash flow: USD 2.7 billion
However, the company reported that its full-year adjusted gross margin will decline by approximately 100 basis points.
📢 Dell targets $15 billion in AI server sales
Dell is one of the largest suppliers of AI-optimized servers. It sold $10 billion worthof AI serversin 2024 and expects $15 billion in sales for this year . The company has partnered with companies like Elon Musk's xAI and its AI server order backlog exceeds $4.1 billion. Dell is building its growth on the use of Nvidiachips , which are the dominant technology for training AI models.
📌 Q4 Revenue Segments:
Infrastructure Solutions Group (servers & cloud): $11.35 billion (+22% YoY)
Client Solutions Group (PC & Laptop): $11.88 billion (+5% YoY)
📉 Outlook for 2025 and 2026
For the first quarter of fiscal year 2026, it expects revenue between USD 22.5-23.5 billion, slightly below Wall Street estimates . Full-year revenue projections are between $101-105 billion, which is in line with the projected growth of the data center and AI infrastructure market . Earnings per share are expected at USD 9.30, beating analysts' consensus estimate.
💰 Dividends and share buybacks
Dell increased its annual dividend by 18 % to $2.10 per share, resulting in a payout of $1.47 billion to investors.
Also announced was a share repurchase program worth USD 10 billion, underlining management's confidence in the long-term strength of the company.
Dell
DELLWhat is your view of the company?
The $DELL3.4% is quite undervalued right now and I'm starting to think about buying it as the outlook is very optimistic.
I don't find the $DELL3.4% or $HPQ1.7% business very interesting, but the buybacks are great.