What's Going On With Dell Technologies Stock Thursday?

Dell Technologies Inc DELL prepared to offer updates to its long-term financial framework during its Securities Analyst Meeting Thursday, including an increase to the company's share repurchase authorization, a boost to its annual capital return target, and its commitment to grow the dividend.

Dell will announce its updated long-term value creation framework, which includes compounded annual revenue growth of 3%-4% and an increase to its non-GAAP EPS target of 8% yearly growth or better over the long term. 

The company expects net income to adjusted free cash flow conversion of 100% or better and to return more than 80% of adjusted free cash flow to shareholders through a combination of share repurchases and dividends.

"We are incredibly well positioned for this next wave of technology expansion, growth, and progress," said Chair and CEO Michael Dell. "Whether it's workplace solutions, multi-cloud, intelligence at the edge, or AI and now GenAI – all of it takes a whole lot of what we offer."

Dell will increase its share buyback authorization by $5 billion, adding to the remaining approval of the current $5 billion plan. 

It expects to grow its quarterly dividend by 10% or more annually through fiscal 2028.

"We have a unique operating model, generating $42 billion in cash flow from operations over the last five years," said CFO Yvonne McGill.

In August, Dell reported a 13% revenue decline to $22.93 billion vs. the consensus of $20.85 billion. Adjusted EPS was $1.74 vs. consensus $1.14.

The company held $3.2 billion in cash flow from operations as of August 4.

Price Action: DELL shares traded lower by 1.19% at $66.40 on the last check Thursday.