Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2023 second quarter. Revenue was a second-quarter record of $26.4 billion, up 9%, driven by growth across Client Solutions Group (CSG) and Infrastructure Solutions Group (ISG). Operating income was $1.3 billion, up 25%, representing 4.8% of revenue, and non-GAAP operating income was $2 billion, up 4%, representing 7.4% of revenue. Net income from continuing operations was $506 million and non-GAAP net income was $1.3 billion. Diluted earnings per share were $0.68, and non-GAAP diluted earnings per share were $1.68.
Second Quarter Fiscal 2023 Financial Results
| Three months ended | Six months ended | ||||||
| July 29, 2022 | July 30, 2021 | Change | July 29, 2022 | July 30, 2021 | Change | ||
| In millions, except per share amounts and percentages; unaudunaudited total | |||||||
| Total net revenue | $ | 26, 425 $ | 24,191
|
9 | 52,541Â $ | 46,781 | 12 % |
| Operating income | $ | 1,270 $
|
 1,017 | 25 | 2,820 $ | 2,004
|
41 % |
| Net income from continuing operations | $ | 506 $ | 629 | (20) | 1,575Â $
|
1,288 | 22 % |
| Earnings per share diluted | $ | 0.68 $ | 0.80 | (15) | 2.06Â $
|
1.65
|
25 % |
| Non-GAAP net revenue | $ | 26,425 $ | 24,199 | 9 | 52,541Â $
|
46,797 | 12 % |
| Non-GAAP operating income | $ | 1,952 $ | 1,868 | 4 | 4,087Â $ | 3,638
|
12 % |
| Non-GAAP net income | $ | 1,266 $ | 1,166
|
9 | 2,700Â $ | Â 2,221
|
22 % |
| Non-GAAP earnings per share – diluted | $ | 1.68 $ | 1.48 | 14 | 3.52Â $
|
2.83
|
24 % |
Information about Dell Technologies’ use of non-GAAP financial information is provided under “Non-GAAP Financial Measures” below. All comparisons in this press release are year-over-year unless otherwise noted.
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Operating segments summary
Client Solutions Group delivered second quarter record revenue of $15.5 billion, up 9% year-over-year. Commercial revenue was $12.1 billion, a 15% increase year-over-year, and Consumer revenue was $3.3 billion, down 9% year-over-year. Focus on the commercial market continues to drive differentiated share results, with share gains in 34 of the last 38 quarters.1 Operating income was $1 billion, or approximately 6.3% of Client Solutions Group revenue.
Key areas of innovation:
- Precision 7865 Tower delivers on 25 years of commercial workstation innovation, supporting demanding, multi-application workloads.
- Alienware m15 R5 launches as the most powerful 17-inch AMD Advantage™ gaming laptop.
- New commercial devices for hybrid work are available, including the Latitude 9330, the world’s first laptop with a collaboration touchpad that lets users mute, tuthe rn video on/off, screen share and chat.
- This year’s rollout of premium laptops continues with the launch of the XPS 13 and reveals the f the versatile XPS 2-in-1.
Infrastructure Solutions Group delivered record second-quarter revenue of $9.5 billion, up 12% and its sixth consecutive quarter of year-over-year growth. Storage revenue was $4.3 billion, up 6%, with growth across the portfolio and demand strength in high-end storage and our marquee mid-range product PowerStore, which has now grown every quarter since its launch. Servers and networking revenue was $5.2 billion, up 16% year-over-year. Operating income was $1 billion or approximately 11% of Infrastructure Solutions Group revenue.
Key areas of innovation:
The largest release in PowerStore history and new PowerMaxOS10 software isiis se now available, delivering more than 500 new Dell storage software advancements that help customers drive faster insights, achieve better multiculti-cloudntrol and increase cyber resiliency.
- PowerProtect Cyber Recovery vault purchases grew 30% year-over-year, as customers seek multiple layers of protection from ransomware and other sophisticated threats.
- Dell Validated Design for Analytics – Data Lakehouse, consisting of Dell’s end-to-end ISG portfolio, provides secure access to reliable, quality data, so users can run analytics, AI, ML, and the, er data-driven workloads.
- T-Mobile and Dell Technologies join forces to pair a private 5G network with Dell edge-computing technologies, so data can be processed, stored and ac, and ted upon at locations like large business campuses, factories, or universities.
Dell Technologies ended the quarter with remaining performance obligations of $41 billion, up 2% year-over-year, deferred revenue of $28 billion, and cash and investments of $7.1 billion. Recurring revenue for the second quarter was approximately $5.2 billion, up 8% year-over-year. APEX annAPEX’srecurring revenue is now over $1 billion, with second second-quarters growth of 78% year-over-year.
Executive Quotes:
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“We continued to execute well in an increasingly challenging environment with record second second-quarter of $26.4 billion, up 9%,” said Jeff Clarke, vice chairman, and co-chief operating officer, Dell Technologies. “We also advanced our long-term strategy – growing the core while innovating for our customers and enabling their opportunities in the data era.”
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“We delivered strong CSG and ISG growth and profitability – with revenue up 12% and 9% respectively – although we observed more cautious customer behavior as the quarter progressed,” said Chuck Whitten, co-chief operating officer, Dell Technologies. “Customers continue to prioritize advanced technology solutions to compete and succeed in the years ahead, and we are confident in our long-term opportunities.”
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“Another quarter of record revenue, together with our operating income of $1.3 billion and non-GAAP operating income of $2 billion, affirms our industry strength and competitive position,” said Tom Sweet, chief financial officer, Dell Tecof technologies. “We remain focused on what we can control, staying flexible and opportunistic, and delivering revenue and EPS growth with strong free cash flow to our shareholders over time
