Summary
Dell Technologies Inc. reported its second-quarter fiscal year 2023 results, demonstrating revenue growth across its key segments. Total net revenue increased by 9% year-over-year to $26.4 billion, driven by robust performance in both the Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). ISG saw a 12% revenue increase to $9.5 billion, fueled by strong demand for servers, networking, and storage solutions. CSG reported a 9% revenue increase to $15.5 billion, primarily due to growth in commercial offerings, despite a slight decline in consumer sales. While overall revenue grew, the company experienced a slight decrease in gross margin percentage due to increased costs and foreign currency fluctuations, which were not fully offset by pricing adjustments. Operating income saw a significant increase of 25% to $1.3 billion, benefiting from disciplined cost management and a decrease in amortization of intangible assets. This period highlights Dell's ability to navigate macroeconomic pressures by focusing on its core offerings, driving innovation, and managing its supply chain effectively.
Financial Highlights
56 data points| Revenue | $26.43B |
| Cost of Revenue | $20.99B |
| Gross Profit | $5.44B |
| R&D Expenses | $626.00M |
| SG&A Expenses | $3.54B |
| Operating Expenses | $4.17B |
| Operating Income | $1.27B |
| Interest Expense | $298.00M |
| Net Income | $511.00M |
| EPS (Basic) | $0.69 |
| EPS (Diluted) | $0.68 |
| Shares Outstanding (Basic) | 739.00M |
| Shares Outstanding (Diluted) | 755.00M |
Key Highlights
- 1Total net revenue increased by 9% year-over-year to $26.4 billion, driven by growth in both ISG and CSG.
- 2Infrastructure Solutions Group (ISG) revenue grew 12% to $9.5 billion, with strong performance in servers, networking, and storage.
- 3Client Solutions Group (CSG) revenue increased 9% to $15.5 billion, largely due to strong commercial segment performance.
- 4Operating income increased significantly by 25% to $1.3 billion, indicating effective cost management and operational efficiencies.
- 5Gross margin percentage saw a slight decrease due to increased costs and foreign currency impacts, partially offset by strategic pricing.
- 6The company repurchased approximately 13.6 million shares of Class C Common Stock for $775 million during the quarter.
- 7Dell Technologies maintained a strong liquidity position with $5.5 billion in cash and cash equivalents and nearly $5 billion in available borrowings.