Dell Technologies reported their fiscal 2024 fourth-quarter results on Thursday, surpassing analysts’ expectations with a robust performance, particularly in the domain of artificial intelligence servers. The company’s earnings and revenue exceeded the forecasts, highlighting a strong demand for its AI-optimized servers.
Dell Technologies: Financial Performance Overview
The reported earnings per share stood at $2.20, adjusted, which outperformed the $1.73 expectation set by LSEG (formerly known as Refinitiv). The revenue for the quarter was $22.32 billion, exceeding the anticipated $22.16 billion. Despite a 11% decrease in revenue from the previous year’s $25.04 billion, Dell’s net income saw a significant rise of 89%, amounting to $1.16 billion compared to the $614 million recorded in the same period last year.
Dividend Increase and Business Segments Analysis
Yvonne McGill, Dell’s Chief Financial Officer, announced a 20% increase in the company’s annual dividend to $1.78 per share, reflecting confidence in the business’s future prospects. The Infrastructure Solutions Group (ISG) reported a revenue of $9.3 billion, a 6% decrease from the previous year, yet a 10% increase from the third quarter, primarily fueled by AI-optimized servers. The Client Solutions Group (CSG) recorded a revenue of $11.7 billion, indicating a 12% decline year over year.
AI-Oriented Growth and Future Outlook
Jeff Clarke, Dell’s Chief Operating Officer, emphasized the continued momentum in AI-optimized server orders, which have surged nearly 40% sequentially, with the backlog nearly doubling to $2.9 billion by the fiscal year’s end. For the forthcoming first quarter, Dell projects revenue to be between $21 billion and $22 billion, expressing optimism about the AI momentum and anticipating a return to growth in fiscal 2025 despite current macroeconomic challenges.
Conclusion
Dell Technologies’ recent earnings report underscores the company’s resilience and strategic focus on AI-optimized servers, which have become a significant growth driver. Despite facing macroeconomic headwinds and a decline in certain segments, Dell’s optimistic outlook and strategic investments in AI technology signal a strong foundation for future growth.
