Delivering on Our Promise of Long-term Value Creation

Poised for growth in the AI era and creating long-term value for shareholders.

Today I had the privilege of standing on the stage at the Dell Technologies Securities Analyst Meeting to unveil our new long-term value creation framework and capital allocation plan. It was a first for me as chief financial officer and a point of pride as both a long-time Dell team member and shareholder.

Let me tell you why.

Together our leadership team laid out a vision for the future of our company, steeped in the realities of today and a long history of adapting and redefining ourselves to meet the moment. Moments like the one we’re in where technology innovation, like generative AI, opens a whole new realm of possibility for humanity.

Built for Long-term Growth

For almost four decades, we’ve made it our mission to be at the center of technology innovation in service of our customers—first with the PC, then with the data center, now with multicloud, edge and AI. And with each new wave of innovation, we’ve tapped into new growth opportunities, delivering $102 billion in revenue last fiscal year.

We built our company for long-term growth. We have a unique operational model that can adjust to any economic environment, driving consistent revenue growth over time and non-GAAP diluted earnings per share (EPS) growth that’s faster than revenue.

And importantly, it comes with some distinct competitive advantages:

  • Leading end-to-end solutions, we’re #1 in 20 technology categories
  • The industry’s largest go-to-market engine
  • The world’s leading supply chain
  • A global footprint operating in 180 countries

Our growth and financial discipline generate a lot of cash. This is nothing new—we’ve largely been cash flow positive for nearly 40 years. Since the EMC transaction in 2016, we used our cash to reduce core debt by $38B, became investment grade again and over the past five years, generated more than $40B in cash flow from operations. And over the last six quarters, we’ve returned on average 90% of adjusted free cash flow to our shareholders.

Value Creation Framework and Capital Allocation Plan

All of that—the vision, the track record of growth, our operating advantages and cash generation—position us to extend our leadership and capture new growth opportunities in this next cycle of innovation…and the next. And when we do, our customers, partners, team members, communities and shareholders will share in our success.

We believe we will deliver:

  • 3-4% revenue growth, outpacing GDP
  • 8% or better growth in non-GAAP diluted EPS
  • Net income to adjusted free cash flow conversion of 100% or better
  • Over 80% return of adjusted free cash flow to shareholders—a sizeable bump from the 40-60% target previously announced
  • Annual dividend growth of 10% or better through FY28

The World is Headed Our Way

I’ve been at Dell for 26 years. I’ve experienced first-hand numerous economic cycles, technology trends and disruptions. Time and again, our company has pivoted, adapted and continued to grow.

But this moment feels different. AI, multicloud, edge, work-from-anywhere—it all means more data, more computing power and more demand for what we sell. The world is headed our way like never before, and we’re ready for it.

Editor’s note: You can watch the Dell Technologies Securities Analyst Meeting replay and access the meeting materials here. 

About the Author: Yvonne McGill

Yvonne McGill is Dell Technologies’ chief financial officer (CFO). She oversees all aspects of the company’s finance function as well as Corporate Development, Global Business Operations, Dell Financial Services and Investor Relations. She also partners closely with the office of the CEO to develop and execute a long-term strategy that creates value for Dell Technologies’ stakeholders. Yvonne joined Dell in 1997 and has held various leadership positions prior to assuming the CFO role, including corporate controller, chief accounting officer, CFO of the Infrastructure Solutions Group and CFO of the Asia-Pacific, Japan and China business. Prior to Dell, Yvonne served as assistant controller at ManTech International Corporation and spent five years at Price Waterhouse providing audit and accounting services to a variety of technology companies. She holds a Bachelor of Science degree in accounting from Virginia Tech, and serves on the board of directors at Applied Materials, Inc.