10-KPeriod: FY2023

Dell Technologies Inc. Annual Report, Year Ended Feb 3, 2023

Filed March 30, 2023For Securities:DELL

Summary

Dell Technologies Inc. reported a year-over-year revenue increase of 1% for fiscal year 2023, reaching $102.3 billion, primarily driven by growth in its Infrastructure Solutions Group (ISG). Despite a challenging macroeconomic environment, the company saw an increase in ISG revenue due to strong performance in servers, networking, and storage offerings. However, the Client Solutions Group (CSG) experienced a 5% decline in revenue, largely attributed to decreased demand in the consumer segment and a reduction in units sold, partly offset by higher average selling prices. The company also announced a 12% increase in its quarterly dividend rate for fiscal year 2024, signaling confidence in its financial health and commitment to returning capital to shareholders. Dell Technologies is strategically focusing on modernizing its core offerings and pursuing growth in areas like Edge, Telecom, and as-a-Service models, exemplified by its Dell APEX initiative.

Financial Highlights

58 data points
Beta

Revenue

$102.30B

22.2% Gross Margin

Net Income

$2.42B

2.4% Net Margin

EPS (Diluted)

$3.24

Total Assets

$89.61B

Cash & Equivalents

$8.61B

Free Cash Flow

$562.00M

Financial Statements
Beta
Revenue$102.30B
Cost of Revenue$79.61B
Gross Profit$22.69B
R&D Expenses$2.78B
SG&A Expenses$14.14B
Operating Expenses$16.91B
Operating Income$5.77B
Interest Expense$1.22B
Net Income$2.42B
EPS (Basic)$3.33
EPS (Diluted)$3.24
Shares Outstanding (Basic)734.00M
Shares Outstanding (Diluted)753.00M

Key Highlights

  • 1Dell Technologies reported a 1% increase in total net revenue to $102.3 billion for fiscal year 2023.
  • 2The Infrastructure Solutions Group (ISG) saw a 12% revenue increase, driven by strong server, networking, and storage performance.
  • 3The Client Solutions Group (CSG) experienced a 5% revenue decline, primarily due to softening demand in consumer and commercial segments.
  • 4Operating income increased by 24% year-over-year, reaching $5.8 billion, with ISG operating income showing significant growth.
  • 5The company repurchased approximately $2.8 billion of Class C Common Stock during fiscal year 2023.
  • 6Dell announced a 12% increase in its quarterly dividend rate for fiscal year 2024, from $0.33 to $0.37 per share.
  • 7The company continues to focus on its strategic priorities of modernizing core offerings and pursuing growth in new areas like Edge, Telecom, and as-a-Service through Dell APEX.

Frequently Asked Questions

Dell Technologies reported a 1% increase in total net revenue for fiscal year 2023, reaching $102.3 billion. Operating income saw a substantial 24% increase to $5.8 billion, driven by strong performance in the Infrastructure Solutions Group (ISG) and disciplined cost management. This growth occurred despite a challenging macroeconomic environment that impacted the Client Solutions Group (CSG).

The Infrastructure Solutions Group (ISG) was a strong performer, with revenue increasing by 12% to $38.4 billion, driven by growth in servers, networking, and storage. The Client Solutions Group (CSG) experienced a 5% revenue decline, totaling $58.2 billion, primarily due to a decrease in units sold in both consumer and commercial markets, although average selling prices saw an increase.

Dell's strategy focuses on two main priorities: growing and modernizing its core offerings and pursuing new growth opportunities. This includes expanding its presence in areas like Edge computing, Telecom, data management, and as-a-Service consumption models, further developing its Dell APEX offerings to provide flexible consumption options for customers.

Dell Technologies is committed to returning capital to shareholders through share repurchases and dividends. In fiscal year 2023, the company repurchased approximately $2.8 billion of its Class C Common Stock and paid quarterly dividends. Notably, the company announced a 12% increase in its quarterly dividend rate for fiscal year 2024, signaling continued confidence in its financial stability and a commitment to shareholder value.