Summary
Dell Technologies Inc. reported solid financial results for the quarter and six months ended July 30, 2021. The company saw a significant increase in net revenue, driven by strong performance in its Client Solutions Group (CSG), which benefited from sustained demand for its commercial and consumer products. The Infrastructure Solutions Group (ISG) also experienced moderate growth, supported by improved macroeconomic conditions and increased IT infrastructure investment. Profitability also improved, with operating income and net income showing increases, particularly for the six-month period. This was largely driven by the strong performance of CSG and a reduction in interest expenses. The company continues to manage its debt effectively, with a notable reduction in overall debt principal during the period. The planned spin-off of VMware, Inc. remains on track for the fourth quarter of calendar year 2021 and is expected to strategically reposition Dell Technologies for future growth and investment.
Financial Highlights
56 data points| Revenue | $24.19B |
| Cost of Revenue | $18.72B |
| Gross Profit | $5.47B |
| R&D Expenses | $697.00M |
| SG&A Expenses | $3.76B |
| Operating Expenses | $4.46B |
| Operating Income | $1.02B |
| Interest Expense | $416.00M |
| Net Income | $831.00M |
| EPS (Basic) | $1.09 |
| EPS (Diluted) | $1.05 |
| Shares Outstanding (Basic) | 763.00M |
| Shares Outstanding (Diluted) | 786.00M |
Key Highlights
- 1Total net revenue increased by 15% year-over-year for the second quarter and 13% for the first six months of Fiscal 2022.
- 2The Client Solutions Group (CSG) was a key driver of growth, with net revenue up 27% in Q2 and 24% for the first six months, benefiting from strong demand for commercial and consumer products.
- 3Infrastructure Solutions Group (ISG) net revenue grew by 3% in Q2 and 4% for the first six months, supported by an improving macroeconomic environment and increased IT infrastructure spending.
- 4Operating income saw a significant increase of 21% in Q2 and 49% for the first six months, reflecting strong performance across segments and improved cost management.
- 5Net income attributable to Dell Technologies Inc. increased by 44% for the first six months of the fiscal year.
- 6The company reduced its total debt principal by $4.4 billion during the first six months of the fiscal year.
- 7Dell Technologies remains on track for the planned spin-off of VMware, Inc. in the fourth quarter of calendar year 2021.