Financial Data and Key Metrics Changes - For FY24, the company reported revenue of $88.4 billion, operating income of $7.7 billion, and diluted EPS of $7.13, despite a revenue decline [50] - Q4 revenue was $22.3 billion, down 11%, with strong gross margins and lower operating expenses [77] - Gross margin was $5.5 billion, representing 24.5% of revenue, up 70 basis points [77] - Q4 net income was $1.6 billion, up 22%, driven by a lower tax rate and lower infrastructure and operations costs [57] Business Line Data and Key Metrics Changes - In ISG, traditional server demand grew year-over-year, marking the third consecutive quarter of sequential growth, with revenue of $9.3 billion, down 6% [52][78] - AI-optimized server orders increased by nearly 40% sequentially, with $800 million shipped in Q4 [53] - CSG revenue was $11.7 billion, down 12%, largely due to a decline in units [58] Market Data and Key Metrics Changes - The company noted a growing demand for AI servers, with a backlog that nearly doubled sequentially, exiting the fiscal year at $2.9 billion [53] - The traditional server market is expected to recover modestly, with a long digestion period noted in the industry [26][50] - The company anticipates a return to growth in the PC market in the second half of 2024, driven by an aging install base and the end of life for Windows 10 [161] Company Strategy and Development Direction - The company is focusing on leveraging its strengths to extend leadership positions and turn new opportunities into incremental growth, particularly in AI [76] - The strategy includes maintaining pricing discipline and managing costs effectively in a competitive environment [55][77] - The company is optimistic about the upcoming PC refresh cycle and the long-term impact of AI on the PC market [79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the AI market, projecting a $152 billion opportunity with a 20% CAGR through 2027 [7] - The company expects ISG to grow in the mid-teens, fueled by AI, with a return to growth in traditional servers and storage [61] - Management acknowledged the cautious spending behavior of enterprise and large customers due to macroeconomic factors [72][161] Other Important Information - The company announced a 20% increase in its annual dividend to $1.78 per share, reflecting confidence in its business and cash flow generation [81] - The company aims to return 80% or more of its adjusted free cash flow to shareholders over the long term [63] Q&A Session Summary Question: Insights on traditional server market recovery - Management noted that traditional server demand grew year-over-year in Q4, marking the third consecutive quarter of sequential growth, with optimism about future recovery [25][26] Question: AI server pricing pressure - Management acknowledged pricing pressure in AI servers but indicated that margins improved quarter-over-quarter, with a focus on profitability [15][17] Question: Growth expectations for ISG and CSG - Management expects ISG to grow in the mid-teens, driven by AI, while CSG is anticipated to grow in the low single digits [61][62] Question: AI server backlog and revenue conversion - Management indicated that the AI server backlog of $2.9 billion is expected to convert to revenue, with improved lead times for H100 GPUs [111][112] Question: Storage demand related to AI - Management highlighted that storage demand typically lags behind server demand but is expected to grow as AI workloads increase [135][136]

Dell Technologies (DELL) reported $22.32 billion in revenue for the quarter ended January 2024, representing a year-over-year decline of 10.9%. EPS of $2.20 for the same period compares to $1.80 a year ago.The reported revenue represents a surprise of +0.84% over the Zacks Consensus Estimate of $22.13 billion. With the consensus EPS estimate being $1.73, the EPS surprise was +27.17%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to d ...

Dell Technologies (DELL) came out with quarterly earnings of $2.20 per share, beating the Zacks Consensus Estimate of $1.73 per share. This compares to earnings of $1.80 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 27.17%. A quarter ago, it was expected that this computer and technology services provider would post earnings of $1.47 per share when it actually produced earnings of $1.88, delivering a surprise of 27.89%.Over ...

Key TakeawaysDell shares surged after the company posted fourth-quarter revenue for the 2024 fiscal year that beat estimates, driven by gains in its server segment as artificial intelligence (AI) demand booms.The company's fourth-quarter revenue at $22.3 billion beat analyst estimates, while net income at $1.16 billion was slightly below estimates compiled by Visible Alpha.Dell's Infrastructure Solutions Group grew 10% from the previous quarter as AI-optimized server orders jumped nearly 40%.Analysts have s ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

In this articleA Dell Technologies flag outside the company headquarters in Round Rock, Texas, Feb. 6, 2023.Shares of Dell popped more than 18% in extended trading Thursday after the company released fourth-quarter results that beat analysts' estimates on top and bottom lines.This is breaking news. Please check back for updates. ...

SUBARU Lab, powered by Dell PowerScale storage systems, will deliver next-generation AI technology to enhance driver safety ROUND ROCK, Texas, Feb. 29, 2024 /PRNewswire/ --   News summary Dell storage systems help Subaru store and manage approximately 1,000 times more files than before to power next-generation AI solution development SUBARU Lab reduces storage costs while scaling performance through Dell PowerScale storage tiering capabilities Full story Subaru Corporation is teaming with Dell Technologie ...

ROUND ROCK, Texas, Feb. 28, 2024 /PRNewswire/ -- Dell Technologies (NYSE: DELL) announces that Yvonne McGill, chief financial officer, and Arthur Lewis, president of Infrastructure Solutions Group, will present in a fireside chat at the following conference: Morgan Stanley Technology, Media & Telecom Conference – San Francisco, CATuesday, March 5, 20243:35 p.m. PT / 6:45 p.m. ET A live webcast and a replay of all conference webcasts will be available on Dell Technologies' Investor Relations page at investor ...

Financial Performance - Fourth quarter revenue was $22.3 billion, down 11% year over year, and full-year revenue was $88.4 billion, down 14% from fiscal year 2023[1][2] - Operating income for the fourth quarter was $1.5 billion, up 25% year over year, while full-year operating income was $5.2 billion, down 10% year over year[1][2] - Non-GAAP diluted earnings per share for the fourth quarter was $2.20, up 22% year over year, and for the full year, it was $7.13, down 6% year over year[1][2] - Total consolidated net revenue for the three months ended February 2, 2024, was $22,318 million, a decrease of 11% compared to $25,039 million for the same period in 2023[35] - Net income for the three months ended February 2, 2024, was $1,158 million, representing a 91% increase from $606 million in the same period last year[23] - Gross margin for the fiscal year ended February 2, 2024, was 23.6%, up from 22.2% in the previous fiscal year[23] - Total ISG net revenue decreased by 6% to $9,332 million for the three months ended February 2, 2024, down from $9,905 million in the same period last year[32] - Total CSG net revenue for the fiscal year ended February 2, 2024, was $48,916 million, a decrease of 16% from $58,213 million in the previous fiscal year[32] - Reportable segment net revenue for the fiscal year ended February 2, 2024, was $82,801 million, down from $96,569 million in the previous fiscal year, reflecting a decrease of 14%[35] Cash Flow and Shareholder Returns - Cash flow from operations for the full year was $8.7 billion, with $7 billion returned to shareholders since Q1 FY23[4] - Cash flows from operating activities for the fiscal year ended February 2, 2024, were $8,676 million, compared to $3,565 million for the previous year[30] - Cash flow from operations decreased by 44% to $1,533 million for the three months ended February 2, 2024, compared to $2,714 million in the same period last year[52] - Free cash flow dropped by 59% to $806 million for the three months ended February 2, 2024, down from $1,965 million in the prior year[52] - The company reported a significant increase in free cash flow for the fiscal year 2024, reaching $5,923 million compared to $572 million in fiscal year 2023, marking a 935% increase[52] - Dell is increasing its annual cash dividend by 20% to $1.78 per common share, reflecting confidence in the business[3][4] Segment Performance - The Infrastructure Solutions Group (ISG) reported fourth quarter revenue of $9.3 billion, down 6% year over year, and full-year revenue of $33.9 billion, down 12% year over year[6][11] - The Client Solutions Group (CSG) delivered fourth quarter revenue of $11.7 billion, down 12% year over year, and full-year revenue of $48.9 billion, down 16% year over year[7][11] - CSG operating income increased by 8% to $726 million for the three months ended February 2, 2024, compared to $671 million for the same period in 2023[32] - ISG operating income as a percentage of ISG net revenue was 15.3% for the three months ended February 2, 2024, compared to 15.6% for the same period in 2023[32] Research and Development - Research and development expenses for the three months ended February 2, 2024, were $716 million, a decrease of 10% from $795 million in the same period of 2023[23] - New product developments include support for AMD Instinct™ MI300X accelerator and advancements in enterprise data storage for AI workloads[9][10] Strategic Partnerships and Market Trends - AI-optimized server orders increased nearly 40% sequentially, with a backlog of $2.9 billion at the end of the fiscal year[8] - Dell has partnered with Nokia to serve as its preferred infrastructure partner, transitioning Nokia AirFrame customers to Dell PowerEdge servers[10] Tax and Other Expenses - The income tax expense for the three months ended February 2, 2024, was $130 million, a significant decrease of 59% from $317 million in the same period last year[23] - Capital expenditures and capitalized software development costs for the three months ended February 2, 2024, were $727 million, slightly down from $749 million in the same period last year[52] Earnings Per Share - Earnings per share attributable to Dell Technologies, Inc. increased by 89% to $1.59 for the three months ended February 2, 2024, compared to $0.84 for the same period in 2023[49] - Non-GAAP earnings per share attributable to Dell Technologies, Inc. was $2.20, a 22% increase from $1.80 in the prior year quarter[49] - Non-GAAP earnings per share for the fiscal year 2024 was $7.13, a 6% decrease from $7.61 in fiscal year 2023[49] - Non-GAAP earnings per share - diluted increased by 22% to $2.20 for the three months ended February 2, 2024, compared to $1.80 for the same period in 2023[41] - Non-GAAP gross margin for the three months ended February 2, 2024, was $5,468 million, down 8% from $5,971 million in the same period last year[41]

Analyst Estimates for Q4 FY 2024Q3 FY 2024Q4 FY 2023Revenue$22.11 billion$22.25 billion$25.04 billionDiluted EPS$1.72$1.88$1.80Net Income$1.26 billion$1.39 billion$1.32 billion Key Metric: Server and Networking Revenue Growth A bright spot could be Dell's server and networking segment, which grew last quarter despite overall earnings falling short of expectations.Servers and networking revenue was at $4.7 billion in the third quarter of the 2024 fiscal year, representing 9% sequential growth that the com ...