Dell Technologies posts strong financial results, exceeds expectations

Following the release of the company’s fourth-quarter earnings, which exceeded analyst projections and demonstrated strong demand for its artificial intelligence servers, Dell Technologies’ shares surged more than 15% during extended trading on Thursday.

Revenue: $22.32 billion vs. $22.16 billion predicted by LSEG, formerly known as Refinitiv; earnings per share: $2.20 adjusted vs. $1.73 expected by LSEG

In the fourth quarter of fiscal 2024, Dell’s revenue decreased by 11% from $25.04 billion in the same quarter the previous year. The company’s net income for the same period last year was $614 million, down 89% to $1.16 billion this time around.

The company is raising its annual dividend by 20% to $1.78 per share, according to an announcement from Chief Financial Officer Yvonne McGill. She described this as a “testament to our confidence in the business.”

Revenue for Dell’s Infrastructure Solutions Group (ISG) was $9.3 billion for the quarter, up 10% from the previous quarter but down 6% from the previous year. The majority of the revenue came from servers and networking, with “AI-optimized servers” responsible for $4.9 billion in sales. Revenue from storage amounted to $4.5 billion.

The Client Solutions Group (CSG) of the corporation reported $11.7 billion for the quarter, a 12% decrease from the previous year. This comprises $2.2 billion in revenue from consumers, down 19% year over year, and $9.6 billion from business clients, down 11% from the fourth quarter of previous year.