Dell Launches Buyback Program, Sees Revenue Growing 3% to 4% Yearly Through 2026
September 23 2021 - 09:04AM
Dow Jones News
By Matt Grossman
Dell Technologies Inc. Thursday said it plans to embark on a $5
billion share-repurchase program starting in November, and forecast
revenue will grow by 3% to 4% annually through fiscal 2026.
The Round Rock, Texas-based computing company said its new
buyback program will be effective in November, upon the projected
completion of the spinoff of the VMware business. That move will
likely grant Dell an investment-grade corporate-family credit
rating, Dell said.
Dell also said it plans to initiate a quarterly dividend in the
first quarter of its 2023 fiscal year, aiming for an annual
dividend of about $1 billion.
Dell's multi-year guidance came ahead of a Thursday meeting with
sector analysts. As part of the guidance, Dell said it expects its
adjusted earnings per share will grow at an annual rate of 6% or
more through the 2026 fiscal year.
The company affirmed previously issued guidance for the third
quarter of its 2022 fiscal year, calling for revenue growth in the
mid to high teens and operating income 1% to 2% higher
sequentially.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
September 23, 2021 08:49 ET (12:49 GMT)
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