Dell Boosts Dividends & Buybacks After Record FY26 Cash Flow, Signaling Robust Future
ROUND ROCK, Texas – February 26, 2026 – Dell Technologies (NYSE: DELL) has concluded its fiscal year 2026 with a resounding success, announcing unprecedented financial results that underscore its strategic pivot and operational prowess. The tech giant revealed record-breaking revenue, earnings per share (EPS), and, crucially, phenomenal cash generation, leading to a significant increase in shareholder returns through enhanced dividends and an expanded share repurchase program. These compelling
Dell Technologies Reports Record FY26 Revenue, Fueled by AI, paint a picture of a company confidently navigating the evolving technology landscape, particularly driven by the burgeoning demand for AI infrastructure.
A Defining Year: Unpacking Dell's Record FY26 Financial Results
Fiscal year 2026 has indeed been a landmark period for Dell Technologies. The company reported a full-year revenue of an astounding $113.5 billion, marking a robust 19% increase year-over-year. This top-line growth was mirrored by exceptional profitability, with full-year diluted EPS soaring by 36% to $8.68, and non-GAAP diluted EPS climbing 27% to $10.30. These figures are not just numbers; they represent the culmination of strategic investments, efficient operations, and a clear vision that has positioned Dell at the forefront of technological innovation.
The fourth quarter of FY26 alone provided a powerful capstone to this record year. Dell posted Q4 revenue of $33.4 billion, a remarkable 39% increase compared to the previous year. This impressive quarterly performance also translated into strong earnings, with diluted EPS for the quarter reaching $3.37, up 57% year-over-year, and non-GAAP diluted EPS at $3.89, representing a 45% increase.
However, beyond revenue and profit, perhaps the most telling sign of Dell's financial health is its cash flow. For the full fiscal year, Dell generated a record $11.2 billion in cash flow from operations, with an impressive $4.7 billion generated in the fourth quarter alone. This robust cash generation is the bedrock upon which the company is building its future strategies, including significant returns to shareholders.
"FY26 was a defining year in our company’s history, with record full-year revenue of $113.5 billion, record EPS, and record cash generation," affirmed Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. "The AI opportunity is transforming our company." This statement highlights the critical role of artificial intelligence in Dell's recent success and future trajectory.
The AI Revolution: Dell's Strategic Engine for Growth
The surging demand for AI infrastructure is undeniably a pivotal factor in Dell's extraordinary performance. The company has skillfully positioned itself to capitalize on this megatrend, leveraging its engineering leadership and differentiated solutions to capture a significant share of the AI server market.
Dell's commitment to AI is evident in its order book. Throughout FY26, Dell closed more than $64 billion in AI-optimized server orders, a testament to the market's trust in their capabilities. More than $25 billion of these orders were shipped during the year, demonstrating effective execution and delivery. What's even more compelling is the impressive backlog Dell is carrying into FY27: a staggering $43 billion in AI-optimized server orders. This backlog not only guarantees significant revenue streams for the upcoming fiscal year but also signals sustained demand and Dell's strong competitive advantage in a critical, high-growth sector.
Why is this significant? For investors and industry observers, a substantial backlog like Dell's AI server orders provides a strong indicator of future revenue stability and growth predictability. It suggests that Dell has developed compelling solutions that meet the complex and intensive requirements of AI workloads, from data centers to edge computing. Companies investing in AI need robust, scalable, and reliable hardware, and Dell's success in securing these orders points to its ability to deliver on these needs. Their focus isn't just on selling hardware but integrating solutions that enable businesses to harness the power of AI effectively.
Bolstering Shareholder Value: Dividends, Buybacks, and Future Outlook
With such impressive financial health and a clear growth path, Dell is committed to sharing its success with shareholders. The company announced a substantial 20% increase in its cash dividend, a clear vote of confidence from management in ongoing profitability and cash flow generation. Moreover, Dell has authorized an additional $10 billion for its share repurchase program, further signaling its belief that its stock is undervalued and providing a mechanism to return capital directly to investors.
In FY26 alone, Dell Technologies returned a record $7.5 billion to shareholders, repurchasing approximately 54 million shares. This consistent strategy of returning capital is a powerful message to the market, indicating financial discipline and a commitment to enhancing shareholder value. Increasing dividends and expanding buybacks often suggests that a company views its future prospects favorably, has ample cash, and believes that reinvesting in its own stock is a valuable use of capital.
For individual investors, these moves can translate into tangible benefits. A higher dividend provides a steady income stream, while share buybacks can increase EPS by reducing the number of outstanding shares, potentially leading to capital appreciation. This move positions Dell as an attractive option for both growth and value investors.
Navigating the Future: FY27 Projections and Market Implications
Looking ahead, Dell Technologies remains highly optimistic, providing robust guidance for fiscal year 2027. The company anticipates full-year revenue to reach approximately $140 billion at the midpoint of its projected range, representing a strong 23% year-over-year growth. This projection is underpinned by the substantial AI server backlog and continued demand across its portfolio.
Profitability is also expected to climb significantly, with diluted EPS growth projected at 33% at the midpoint, and non-GAAP diluted EPS growth at 25% at the midpoint. These aggressive targets reflect Dell's confidence in its operational model, its diversified portfolio, and its expanding customer base, all poised to exceed long-term growth targets.
"We have the portfolio, operating model and growing customer base to exceed our long-term growth targets in FY27," stated David Kennedy, chief financial officer, Dell Technologies. This forward-looking statement reinforces the strategic vision and operational excellence driving the company. Investors should note that strong guidance, particularly with specific growth percentages, provides a clearer picture of management's expectations and underlying business momentum. Understanding these projections is crucial for assessing a company's future value. For a deeper dive into these projections, you can read more about
Dell Projects Strong FY27 Growth with $43 Billion AI Backlog.
Dell's impressive
dell financial results and forward-looking guidance position it as a formidable player in the global technology landscape. The company's strategic embrace of AI, coupled with its commitment to shareholder returns, paints a picture of a robust and dynamically growing enterprise.
In conclusion, Dell Technologies' stellar FY26 performance, marked by record revenues, earnings, and cash flow, firmly establishes its leadership in the rapidly evolving tech sector. The company's significant strides in AI, evidenced by a massive backlog in AI-optimized server orders, are a testament to its innovation and market foresight. Coupled with a strategic increase in dividends and share repurchase authorizations, Dell is not only investing in its future growth but also generously rewarding its shareholders. As Dell steps into FY27 with ambitious revenue and EPS targets, it continues to solidify its position as a powerhouse, offering compelling opportunities for both technological advancement and investor value.
