What factors could influence DELL's future EPS growth?

Dell Technologies' (DELL) future EPS growth is likely to be influenced by several key factors: 1. **Revenue Growth**: Dell's EPS has already shown a significant increase due to a 7.23% year-over-year growth in total revenue, reaching $23.93 billion. The company's full-year revenue grew by 8.1% to $95.6 billion, with the Infrastructure Solutions Group (ISG) being a major driver of this growth. As Dell continues to execute its growth strategies, particularly in AI and storage solutions, revenue growth could sustain EPS expansion. |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |DELL|DELL.N|Dell Technologies|2025 Q1|6.318707580537233|2.2244E10|169| |DELL|DELL.N|Dell Technologies|2025 Q2|9.121827853841458|2.5026E10|169| |DELL|DELL.N|Dell Technologies|2025 Q3|9.505190777942564|2.4366E10|169| |DELL|DELL.N|Dell Technologies|2025 Q4|7.227350120978581|2.3931E10|169| 2. **Operating Income Growth**: Dell's operating income grew by 15% to $6.2 billion, with the ISG contributing significantly to this increase. The company's focus on profitability and the growth of higher-margin segments like ISG are likely to positively influence EPS growth. 3. **AI Server Demand**: The AI server market is expected to grow significantly, with Dell's AI server backlog standing at approximately $9 billion. As AI server demand continues to rise, Dell's leadership in this space is likely to translate into increased earnings, thereby boosting EPS growth. 4. **Gross Margin Management**: Dell's gross margin improved to 4.8% due to higher revenue and operational efficiency. However, the company anticipates a decline of approximately 100 basis points in FY26 due to a higher mix of AI-optimized servers and competitive pressures. Managing these pressures will be crucial in sustaining EPS growth. 5. **Strategic Investments**: Dell's investments in AI and storage solutions, along with the introduction of innovative products, are expected to drive future growth. These strategic moves are likely to enhance the company's profitability and, consequently, its EPS. 6. **Dividend and Share Repurchase**: Dell announced an 18% increase in its annual dividend and a $10 billion increase in share repurchase authorization, reflecting confidence in its business outlook. Share repurchases can boost EPS by reducing the number of shares outstanding, which may contribute to future EPS growth. 7. **Market Conditions and Competition**: The tech industry is competitive, and Dell faces challenges such as a competitive pricing environment and pressures from ODMs. Managing these market conditions and maintaining a competitive edge will be essential for sustaining EPS growth. In conclusion, Dell's future EPS growth is likely to be driven by revenue expansion, particularly in the ISG, operational efficiency, and strategic investments in high-growth areas such as AI. However, challenges such as competitive pressures and market conditions could impact growth.