On Wednesday, 05 March 2025, Dell Technologies (NYSE: DELL) presented at the Morgan Stanley Technology, Media & Telecom Conference. The company highlighted its robust financial performance and optimistic outlook, driven by significant growth in its AI business. However, Dell also acknowledged challenges such as global geopolitical impacts and tariff pressures.
Key Takeaways
- Dell’s AI business generated $10 billion in revenue for fiscal year 2025, with projections of $15 billion for fiscal year 2026.
- The company anticipates 8% revenue growth and 14% EPS growth in fiscal year 2026.
- Dell plans to return over 80% of adjusted free cash flow to shareholders through dividends and buybacks.
- The PC refresh cycle is expected to boost growth, driven by Windows 10 expiration and AI-enabled PCs.
- Dell is focusing on small strategic acquisitions rather than large-scale deals.
Financial Results
- Fiscal Year 2025 Performance:
- Both CSG and ISG businesses grew by 10%.
- EPS increased by 10%.
- Dell returned $3.9 billion to shareholders via share buybacks.
- Q4 Highlights:
- Revenue and EPS both saw growth.
- ISG operating margin reached a record 18.1%, a significant rise from 8% in Q1.
- Fiscal Year 2026 Guidance:
- The company forecasts 8% revenue growth and 14% EPS growth.
- AI revenue is expected to climb to $15 billion.
Operational Updates
- AI Business:
- Dell has a $9 billion AI server backlog, with strong demand from Tier 2 cloud service providers.
- There is growing interest from enterprises in AI solutions.
- Traditional Servers and Storage:
- The traditional server market is expected to grow for four more quarters.
- Storage solutions are anticipated to see continued growth.
- PC Refresh Cycle:
- The cycle is anticipated to pick up in the second half of the year.
- Efficiency Initiatives:
- The "Modern Dell" program aims to simplify and automate company processes.
Future Outlook
- AI Growth:
- Dell expects to expand its AI revenue significantly, with a focus on the enterprise sector.
- Infrastructure and PC Markets:
- Continued strength is expected in traditional servers, with growth anticipated in the storage business.
- The PC refresh cycle will be driven by the expiration of Windows 10 and demand for AI-enabled devices.
- Capital Allocation:
- Dell is committed to returning over 80% of adjusted free cash flow to shareholders.
- The company will focus on small, strategic mergers and acquisitions.
Q&A Highlights
- AI Server Demand and Margins:
- Demand is strong among Tier 2 cloud service providers, with enterprises beginning to show interest.
- AI servers are margin dollar accretive, though margin rate dilutive.
- Services and Storage:
- An increase in services attached to enterprise deals is observed, with storage needed for AI data.
- Operating Expenses:
- Operating expenses are expected to be $1 billion lower compared to fiscal 2024, despite a revenue increase of $15 billion.
Readers are invited to refer to the full transcript for a detailed analysis of Dell’s performance and strategic direction.
Full transcript - Morgan Stanley Technology, Media & Telecom Conference:
Unidentified speaker: Risks and uncertainties, including those discussed in the company’s SEC filings.
Unidentified speaker: The company assumes no obligation to update its forward looking statements. With that, I am very pleased to welcome Yvonne McGill, CFO of Dell, to the stage. You are responsible for everything within Dell Finance. You joined the company, let’s call it, you’ve been around for a while, you know the company very well, but you became your CFO of the ISG business prior to stepping in and taking the role of CFO a few years ago. So thank you for joining us.
Yes.
Yvonne McGill, CFO, Dell: Thank you. Yes, I’ve been at the company twenty seven plus years now. So it’s been quite an exciting ride.
Unidentified speaker: Quite a journey. So I think what would be maybe most
Unidentified speaker: helpful for this conversation is starting from the very top, you reported earnings last week. So just a
Unidentified speaker: quick look back, starting from the very top, you reported earnings last week. So just a quick look back at the January and kind of fiscal twenty twenty five calendar 2024 as a whole. So a bit of a post mortem on the year and really more importantly how that sets you up for momentum in fiscal twenty twenty six calendar 2025?
Yvonne McGill, CFO, Dell: Sure. So I was really excited. It was my first full year as CFO. So it was a great year, right? Our CSG and ISG business grew for the full year 10%.
We grew EPS 10% over, so that was a great outcome. We had growth in across again, across the portfolio. We had our everything delivered in excess of our long term value creation framework, right? So a good outcome for the year. We had really exciting AI journey that I’m pretty sure we’ll probably talk about more, but had lots of growth in that business.
And again, grew that business while growing our profitability. And so love to see that. We had $3,900,000,000 in capital returns, so on and on, right? Share buyback, return to shareholders. It was just a great full year.
In the fourth quarter, we grew revenue, we grew EPS, we had record profitability in our ISG business, so 18.1% operating margin. And what a journey the year has been, right? We started at 8% in the first quarter and went to 11%, then 13% and then ended at 18%. And so really a great journey there, all while growing our AI business. Right.
And so I think that’s what we talk about a lot. There is value to our AI business for both the top line and the bottom line. Okay. So I’m excited about the year that we just started. We guided to 8% revenue growth overall and we guided to 12% EPS growth.
And so and by 12%, I meant to say 14%.
Unidentified speaker: Even better.
Yvonne McGill, CFO, Dell: So even better, right? Two point. So got two just right there and talking. And so I think I’m excited about the year that started, but it’ll be a dynamic year. Obviously, there’s lots going on in the world, right?
So excited about this.
Unidentified speaker: So we’ll talk about all of that. And maybe, again, just to put numbers onto the details. So 8% revenue growth, 14% EPS growth. For context, your long term targets are 3% to 4% revenue growth, 8% plus. You always kind of highlight that plus.
Yvonne McGill, CFO, Dell: We never limit ourselves. That’s right.
Unidentified speaker: So you outperformed your targets in fiscal twenty twenty five. You’re starting your fiscal twenty twenty six guide implying effectively either kind of a consistent growth or even an acceleration. And so walk us through the market backdrop as you see it today. And then what you as Dell Technologies is doing at the company level to kind of outperform those long term targets?
Yvonne McGill, CFO, Dell: Yes. So for the past two years, we’ve we’ve we laid out that long term framework and we’ve over performed or outperformed that from a revenue and EPS standpoint. We had a great AI we did all this while growing our AI business, right? And so we talked about the $10,000,000,000 from last year. We’ve guided to $15,000,000,000 for at least we did another plus thing there.
So $15,000,000,000 for AI this year, while growing our earnings and maintaining that. But we have $9,000,000,000 in backlog already as we as of last Thursday, when we did earnings. And so that was really that’s really exciting for us, but it’s not at the level of being a very predicted it’s still a startup business, right? And it’s a very complex business to be operating in. And so we will work through that.
I’m sure we’ll talk about that more. Traditional servers, we saw five quarters of growth, and we have guided that we would have four more quarters of growth this year that we’re in. We have the really the more opportunity with 14 gs transitions there. Storage, we saw growth again. We obviously talked about our strong performance in the last fiscal year, but expect that to continue into the year that we just started.
And then PCs, I’m so excited about the PC refresh. We are expecting that to take off as the year progresses more weighted towards the second half. But again, it’s an exciting year that we’re in with growth across the entire portfolio and continued driving continued efficiency too, which is something we’ve been after and been demonstrating OpEx scaling.
Unidentified speaker: Yes. So obviously news this week heavily weighted towards kind of geopolitics, global trade. Maybe two part question for you just to pull this question to the front is, how much of your U. S. Bound production currently comes from China?
And given the tariffs that are in place now, how what are you leveraging and how are you leveraging certain levers to minimize that impact? How do we think about that factored into your fiscal twenty twenty six guide?
Yvonne McGill, CFO, Dell: Yes. So we will successfully navigate whatever environment comes through. And we have a global supply chain, global footprint, and that is one of our key advantages, key differentiators at Dell Technologies. And so we will leverage that. We will make sure that we are really making sure that we are minimizing the impact of any tariffs.
However, we treat a tariff as an input cost. And so as I think through an input cost increase, I will have to ultimately pass that through to the customer. And so we’ll work through that and navigate through that. It usually takes us in an inflationary period, so set tariffs aside when we have inflation. It takes us around ninety days to work that through.
Some of our competitors have different inventory levels. We run with a very low inventory level. And so we’ll work that through and pass that pricing through to our customers, right? So if cost goes up, so too will the devices that we sell because we will keep profitability as one of our key deliverables. Okay.
Unidentified speaker: Maybe last high level question before we get into some of the segments in detail. So I call this like one of the kind of key questions that every that everyone kind of asks about is so for fiscal twenty twenty six, you’ve guided to 100 basis points of gross margin contraction, but 30 basis points of operating margin expansion. There’s obviously a host of factors that impact both gross and operating. How confident are you or maybe why are you confident that the bar that you set now that 100 basis points gross margin contraction, 30 basis points of op margin expansion, that’s the right level to set today. There’s a lot of moving pieces.
So help us gain confidence that that’s kind of where things should where we should feel comfortable where things land for this year.
Yvonne McGill, CFO, Dell: Yes. So I think of a lot of the we’ve had a lot of discussions over the last few days and last week, but we talk about AI all the time. And so our AI revenue growth, that business started the first half of FY twenty twenty four. That was no revenue. So that was just zero.
And so now in the year we just finished, the second year, it was $10,000,000,000 right? So this is growing very fast, but while I’m growing profitability. We will grow our ISG business, the operating income there, we’ve targeted to grow that year over year about 20 basis points. So again, we’re doing that. FY 2026, AI is going to be even bigger, right?
So a minimum of $15,000,000,000 We are going to leverage that and then we’ll have that AI business that will be expanding into the enterprise space. Still predominantly these Tier two hyperscalers, but expect that to expand. And as we attach more of our key differentiators, our services, our support, that expands the profitability in that space. But when I think of the EPS growth, there’s efficiency that we’re driving through the business, right? So we guided operating expense down, and that’s not because we’re not investing because we are, but it’s because we’re driving efficiency and driving higher better outcomes with less spend.
And so we’ll continue to see that, right? So I feel very confident about growing the top line, but growing the bottom line at a differentiated level. Okay.
Unidentified speaker: Let’s shift kind of to the segments. I’d be remiss if I didn’t start on ISG, start on AI. Within that, You just so happen to be the CFO of one of the largest AI server OEMs on the planet. A lot of questions around the pace of demand, the longevity of demand. Can you frame kind of the AI server demand environment as Dell sees it today for us, Tier two CSPs, sovereigns, enterprises?
And maybe the question I’m trying to get at is just maybe where are we as you guys see it, what inning are we in of this infrastructure build out?
Yvonne McGill, CFO, Dell: Sure. So when we talk about innings, right, we talk about being in early innings with the Tier two CSPs. When we talk about the enterprise, we either say, hey, we’re in very early innings or maybe we’re still on our way to the stadium there, to the field, because we haven’t really seen that take off very much yet. We have over 2,000 enterprise customers that are at the beginning stages of tests and within their companies, but not at scale. What we’re still seeing the dominant portion of our revenue is coming from those Tier two hyperscalers.
So I think of the demand environment, I think it’s very robust, it’s expanding. It’s expanding both in the Tier two hyperscaler level, but it’s also more excitingly or equally as exciting in the enterprise, right, where I do feel that we have even more differentiation. Our solution is differentiated and advantaged, But when you get into the broader enterprise, you get to take advantage of all the rest of Dell’s capabilities, right, and our scale, our global scale and services and solutions. And it’s very exciting opportunity for us. So again, early innings.
Q4, we had sequential growth. I’m expecting growth for this year. We’ve obviously talked about the $15,000,000,000 we’re ready. And it doesn’t we’re not limiting ourselves to that number. That’s just the starting point.
Unidentified speaker: Okay. And then I’m going to kind of ask you directly about that now. So $9,000,000,000 AI server backlog as of last Thursday, your fifteen month pipeline is multiples of that backlog, puts you in pretty good shape to capture $15,000,000,000 of revenue, at least for fiscal twenty twenty six. That said, this is a very competitive market, right? The rapid pace of innovation means there are production hiccups along the way.
They can pop up suddenly. Can you help us better understand the different factors that would get you to outperform this $15,000,000,000 Is that as easy as just converting that pipeline? Or what could potentially be the downside risks to that $15,000,000,000
Yvonne McGill, CFO, Dell: So when I think of the delivering at least the $15,000,000,000 right, we do have a backlog as of last Thursday of $9,000,000,000 right? But it’s not just as easy as having the backlog and manufacturing and delivering, right? There has it’s a very complex process. And the not only do we have to do what we do so well and so differentiated, the data center, the customer’s data center has to be ready, right? And we play a key role in making sure that the solution can get up and running for them, so that they can start monetizing their investments.
And so when I think of the $15,000,000,000 plus, when I think of the pipeline and all the opportunities, I guess, I’m less worried about not making the $15,000,000,000 The delivery of it by quarter, it’s been less predictable, right, because we’re still very weighted towards large transactions. But as we expand into the commercial space and have more players, more customers in the mix, right? It will become more less lumpy, if you will. But I feel good about the year. But it’s the quarter to quarter that may be a little differentiated.
As we have to have the GPUs, right? We have to get the GPUs, they have to be ready. And you’ve seen us have a little bit higher inventory levels and such because we want to be ready to go when we get that GPU so that we can deliver the outcome for our customers. Okay.
Unidentified speaker: I’m sure you get this question a lot. I get this question a lot, AI server margins. When investors hear the word competition, you think pricing pressure, you think margin pressure. I won’t ask you directly about your AI server gross margins, but you’re free to tell me if you’d like. Really my question is, really my question is, how do we think about the shape of the AI server gross margin curve kind of as we go through this year and the different factors that will impact that?
Yvonne McGill, CFO, Dell: Sure. Since we entered this business, right, we’ve been talking about AI servers being margin dollar accretive, margin rate dilutive, right? And so we’re in this business to make money. And so there’s definitely margin dollars here. These are large transactions.
Every deal helps us with margin dollars, operating income dollars, EPS dollars and generates cash flow, right? So that’s what we’re here for. If it weren’t for that, all of that, we wouldn’t be in this part of the business, right? So we keep getting questions about percentages and we’re about dollars, right? You don’t take percentages to the bank.
And so I think we’re continuing to see that. As I spoke earlier, we’re excited about the further expansion into the enterprise that will help drive additional profitability, but feel very confident about that. And again, the holistic company, the holistic mix is expected to grow across everywhere. And the OpEx spend, we talk about the scalability there. The AI business doesn’t drive a significant amount of incremental operating expense.
And so we have some specialists that are focused on that. We have engineers that are focused on that. And we have a very a smaller team that’s doing that in a remarkable way. And so again, I don’t need I tease, I don’t need a lot of extra finance people to scale the AI business. So again, it’s an exciting opportunity for
Unidentified speaker: me. Yes. And I want to kind of maybe hammer that part home because we’ve talked about gross margins. You just kind of talked about some of the factors impacting operating margins for AI servers. Again, maybe my question as simplistically is, is there leverage at the operating level with AI servers?
Again, you’ve gone from effectively $0 to now at least $15,000,000,000 You’re adding some specialist salespeople. You’re adding some engineering heads. I’ve got to imagine even if we want to say these are low margin rates that you can get leverage out of this business. Is that a fair way of thinking about the scalability?
Yvonne McGill, CFO, Dell: Absolutely, absolutely. We did I’ve mentioned it you mentioned it engineers we added. We’ve added some sales specialists, but we don’t have to add really across the rest of the organization, right? So the scale is there and we’ll continue to drive efficiencies. And that’s one of the things we’ve been working on is driving efficiencies holistically across the company, inclusive of bringing products to market faster, right, engineering and embedding AI in everything that we’re doing.
And so it’s been a great beginning of the journey, right, because we’re not done.
Unidentified speaker: Okay. And I realize that we’re early to last AI question. It’s really just more about like services and storage attack. Where are we in that journey? How do we think about the opportunity for storage and services attach with the Tier two CSPs versus enterprises?
And as this business evolves, where do we see this attach going?
Yvonne McGill, CFO, Dell: Yes. So we are already seeing more services attach. And so both especially in the enterprise, but also in those Tier two hyperscalers. And so we’re starting to see that expand. And as we move more into enterprise, I expect that to continue.
From a storage standpoint, we know that storage will be needed for all of this data that’s being generated. It needs to be stored somewhere. But we haven’t although we’ve seen growth in our storage business for the last few quarters, we haven’t seen necessarily the positive impact that I know AI will bring to our storage portfolio and opportunity. We are making sure that we are focused on all of those opportunities and driving the connectivity and efficiency, right? But helping our customers and helping them understand the opportunities ahead of them.
And again, storage attach, it’s coming because that data has to go somewhere. And that’s one of the things we do so very well. And I love our portfolio, right? We’ll have the AI we have traditional servers. We’ve seen a lot of the data center consolidation going on for the last five quarters.
We’ve got the AI servers. All of this data gets generated, needs to get stored somewhere. We have the storage, right? And then you need the device, the PC to access and drive that all that data into opportunity. So I’m excited about it.
Unidentified speaker: Let’s talk about traditional infrastructure. The traditional server market, your traditional server business seems to be humming along quite nicely. Guidance implies another strong year in fiscal twenty twenty six. Your storage comments to me stand out as implying, I don’t want to use a word too strong, but in an inflection to growth in this business. Can you just walk us through kind of what you’re seeing now, forget about AI, just on the traditional data center infrastructure side, both market level and then what you can do to gain share?
Yvonne McGill, CFO, Dell: Yes. So we’re coming off the longest, call it, digestion period that we’ve ever seen. We’ve seen really a just, I guess, the very beginning of the inflection, if you will, from a storage standpoint. We are talking to customers about how best to navigate, how to make their data centers more efficient, what do they need to do, and then leveraging the new technology that we have that’s coming out. I think of our portfolio moving to different offerings that we have across our PowerScale, PowerStore, etcetera, that we are making sure that we are giving those solutions to our customers and again driving that growth.
So we’re seeing very fast growth there across the portfolio. Okay.
Unidentified speaker: And last thing before we shift to CSG, just you mentioned at the top of the session 18% or 18.1% ISG operating margins in 4Q, very different from 1Q. Storage plays a big role in that. And I guess my question is, are we seeing any kind of structural shift higher in the margin rate of your storage business as you’ve been very vocal about kind of the mix shift to Dell IP away from things like HCI?
Yvonne McGill, CFO, Dell: Yes. Short answer is yes. Yes, we’re absolutely seeing that. We I mentioned we saw storage growth for two quarters. The operating the Dell IP content has been one of the key drivers and key benefits of the growth in our operating margin in ISG over the year, right?
So going from the eight to the 11 to the 13 to the 18, we just finished that. Really, you see a weighting obviously, in the fourth quarter, we have a large storage weighting, but it’s Dell IP storage, right? And so seeing that over the year has been great. We expect that to continue into the year we’ve just started and beyond. And we’re seeing really positive trends in that PowerScale, PowerStore, PowerFlex area and more adoption, if you will.
So excited about the progress we’ve made, but feel confident about the year ahead. Okay.
Unidentified speaker: Let’s shift to CSG. So low to mid single digit growth kind of embedded in your fiscal twenty twenty six outlook that is weighted to the second half. Help us understand kind of P times Q unit growth, share gains, ASPs. And then second, maybe addressing some of the questions that I get. Just again, we’re looking at the second half weighted year.
What’s the risk that we don’t see the PC refresh materialize in fiscal twenty twenty six?
Yvonne McGill, CFO, Dell: Well, we have called for the growth to be to start really in the second quarter and then but again be weighted towards the second half of the year and have growth in the mid single digits range. We if you asked me this time last year, which I think you did, when the PC refresh was going to happen, I would have told you it would have started last year. So this is the most elongated aged install base that we’ve ever seen and we know that it needs to be refreshed. We’ve got the additional driver of Win 10 expiration coming in October. And so customers are we have a huge enterprise presence and actively working with our customers to design that PC that will help them move forward for the next few years.
And so they want to make sure they have AI enabled PC devices, so that they can drive that productivity with their team members. So I feel very strongly about growing this year in the PC area. I feel strongly that the refresh will not be 100% completed in this year, that it will extend into next year. But based upon those early signs we’ve seen and we talked about with small and medium business, for example, we’re starting to see the growth already there. And that has been historically a key indicator of the beginning of the cycle.
And so great indicators, all of the activity, all of those we have a direct sales organization that works directly with our customers and we’re having those conversations every day on how they’re going to enable their PC refresh.
Unidentified speaker: And just very quickly, how do I think about AI PCs as a part of that? I think there’s relative skepticism in the market at this point. But is your growth kind of predicated on AI PCs? Is it more based on Win11 and the natural refresh cycle? Just how important does the AI PC play a role as you think about it?
Yvonne McGill, CFO, Dell: Yes. So I think it does play a role. But if you think about our average revenue per unit, it’s 2x the industry average because we are more commercial oriented and we have AI enabled devices already in there. So I think that AI will play a role in helping to increase the revenue per unit. But the conversations we’re having with customers around how should they configure, it is to make sure that they are future proofing, if you will, the investment that they’re making.
And so they’re trying to figure out what all capabilities do they need to have to ensure the longevity of their investment.
Unidentified speaker: Okay. I’m going to fast forward to kind of some of the final high level questions given the time. So I save this kind of operating expense question towards the end because I think it’s very fascinating. If we take the midpoint of your fiscal twenty twenty six guide, you’re telling us that relative to 2024 fiscal ’20 ’20 ’4, revenue will be up $15,000,000,000
Unidentified speaker: You’re
Unidentified speaker: also point to point, you’re also telling us that OpEx will be $1,000,000,000 lower. So revenue up, OpEx down. How are you able to innovate while also and drive above your long term model growth while also managing expenses? And I think the key question is how sustainable is that?
Yvonne McGill, CFO, Dell: So great question, but one I feel very confident with how we’ve guided because we are driving not only we’re driving innovation within the company, we have a program called Modern Dell. And what we’re doing with that program is we are evaluating really what we we’re simplifying, standardizing and automating everything. We’re evaluating what we do, questioning, do I still need to do it? If so, what’s the best way to do it? And to that, we’re also underneath that in parallel saying, hey, how do I clean up my data?
How do I connect all of the elements there? So I can drive even more efficiency across the company and drive these outcomes in a more efficient way. So that means our focus there is in engineering, it’s in sales, it’s in services, it’s in global operations. But don’t think that it’s not everywhere within the company, right? And so I think that’s really how I have confidence in knowing we’ve done it.
We’ve been driving higher revenue growth, while scaling our operating expense. And And I feel very confident that we will do it again this year and beyond, given all of the innovation that we are delivering within the company as well as how we are helping our customers navigate through that. That’s a lot of the conversations we have with customers. They say, how are you doing it? And we help them understand the process that we’re under.
But we also think that’s part of what makes us differentiated. So we keep some of it to ourselves too, right?
Unidentified speaker: And AI adopter and AI enabler.
Yvonne McGill, CFO, Dell: Yes. AI adopter, AI enabler, love it.
Unidentified speaker: Final kind of last question. So free cash flow, you ended 2025 with free cash conversion kind of well below your target. A big part of that is, as you alluded to earlier, you’re holding more inventory. You did talk to getting back to that kind of 100 plus free cash flow conversion this year. Walk me through the various factors that kind of allow you to get that free cash conversion back on track and kind of the inventory dynamics underlying that.
Yvonne McGill, CFO, Dell: Yes. So I mean, we remain committed to our long term framework, which is that. We are we’ll be expecting to deliver more efficiency there. I’m expecting inventory levels to come down. That’s been one of the key differences or differentiators as we’ve made the I believe the right decision to have higher inventory levels so that we can especially it’s particularly around AI.
And that helps us be able to when we receive the GPU that we are ready to go and get the solution to our customers as quickly as possible. But I think through our expectations, we’ve talked about growth in the CSG business, right? CSG is a cash conversion, wonderful environment. And so we run a negative cash conversion cycle, significant with our client business. So as that grows, I say it prints money, and I get the money in advance of having to spend it.
And so I’m excited about the whole portfolio growing and we’ll return back to that framework and be in line. I feel strongly that we will deliver at or above our long term framework in the year that we’ve just kicked off.
Unidentified speaker: Okay,
Unidentified speaker: cool. Last question, capital allocation. You raised your dividend 18%. The board just authorized a $10,000,000,000 buyback. I suspect though I want to hear it from you, you’re still fully committed to 80% plus return target that you laid out at the AID fifteen months ago.
Is that the right way to be thinking about the capital return profile of this business? And just adding on to that, your leverage is now well within your kind of core target. How do we think about Bell’s appetite for M and A at this point or not too distant future?
Yvonne McGill, CFO, Dell: Yes. So we are we do remain committed to our long term framework, the 80% plus of adjusted free cash flow return to shareholders, right? You saw we announced an 18% increase in the dividend. We did 20% last year, so 18% increase there, greater than our long term framework. So we’ll continue with that.
We are making sure that we are returning that value to shareholders. When we talk about M and A, right, we’ve talked about small tuck in M and A. And so we will remain on that area. I don’t see us doing anything large from an M and A standpoint. But we are always interested in potential IP and small engine.
We’ve done some of that over the last few years. And so I think, again, we’re committed to our long term framework. We’re committed to that return to a value to shareholders. And you’ll see us continue to execute against that.
Unidentified speaker: Great. Just remaining time we have, just maybe closing remarks, touching on anything you think is misunderstood, underappreciated, just to leave the crowd with kind of the message you want to send them off with?
Yvonne McGill, CFO, Dell: Well, I think that we are excited about the year that’s underway and I’m excited about the future. We are in business to drive revenue growth, drive profitability growth, earnings per share growth, dividend growth. That’s what we’re after, right? We are in business to make money and the AI opportunity is a very exciting opportunity for us. And the reason we’re in it is because it’s very valuable to us.
So if you add that to the rest of our portfolio, it’s an exciting time for technology. So I appreciate that and I look forward to sharing our fabulous results with everyone as the year progresses. Great.
Unidentified speaker: Well, we’re looking forward to it. Good luck. All right.
Yvonne McGill, CFO, Dell: Thank you.
Unidentified speaker: Thank you. All right.
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