Dell Technologies witnessed a surge of over 15% in its shares during extended trading on Thursday following the release of its fourth-quarter results, which surpassed analysts' expectations and indicated robust demand for its artificial intelligence (AI) servers.
Q4 Earnings Report of Dell Technologies
According to CNBC, the company reported adjusted earnings per share of $2.20, exceeding the $1.73 anticipated by LSEG, formerly known as Refinitiv. Revenue stood at $22.32 billion, slightly surpassing the $22.16 billion expected by LSEG.
Despite a decline of 11% in revenue for the fiscal 2024 fourth quarter compared to the previous year, Dell reported a significant increase in net income, reaching $1.16 billion, an 89% surge from the same period last year.
Yvonne McGill, the chief financial officer of Dell, announced an increase of 20% in the annual dividend to $1.78 per share, reflecting the company's confidence in its business performance.
Dell's Infrastructure Solutions Group (ISG) generated $9.3 billion in revenue for the quarter, a 6% decrease year over year but a 10% increase from the third quarter. Notably, the segment saw substantial revenue from AI-optimized servers, totaling $4.9 billion, while storage revenue amounted to $4.5 billion.
On the other hand, Dell's Client Solutions Group (CSG) reported $11.7 billion for the quarter, reflecting a 12% year-over-year decline, which includes commercial client revenue of $9.6 billion, down 11% from the previous year, while consumer revenue was $2.2 billion, marking a 19% decrease.
AI Server Momentum of Dell Technologies
"Our strong AI-optimized server momentum continues, with orders increasing nearly 40% sequentially and backlog nearly doubling, exiting our fiscal year at $2.9 billion," Jeff Clarke, vice chairman and chief operating officer of Dell, said in a press release.
"We've just started to touch the AI opportunities ahead of us, and we believe Dell is uniquely positioned with our broad portfolio to help customers build GenAI solutions that meet performance, cost and security requirements," he added.
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